If you and your spouse in Illinois have decided that you should not stay married to each other, you will have to embark on the task of determining how to separate your marital estate. The division of assets is often one element of a divorce that extends the time it takes to finalize the end of a marriage. A family home is commonly one of a couple’s largest assets and the corresponding mortgage their largest debt. If your spouse wants to keep your home, it is important for you to know how to protect yourself financially down the road.
As explained by The Mortgage Reports, any spouse who wants to keep a marital home should refinance the existing mortgage so that a new mortgage in their name only is obtained. The reason this is so important is because a lender will always look at the names on the debt when determining who to pursue for repayment or whose credit report to share missed or late payment information with regardless of the terms of any divorce decree.
If your spouse fails to make a mortgage payment and your name is still on the loan, the bank may ask you to make the payment. If the house goes into foreclosure, that action would appear on your credit report.
This information is not intended to provide legal advice but is instead meant to give people in Illinois information that helps them get a sense of some of the nuances involved in separating assets and debts and understand the importance of making a clean financial break when they get divorced.