In the midst of a divorce, the marital home often becomes a focal point of discussions, especially when it comes to equitable distribution and financial settlements. Certified Mortgage Advisor and esteemed Raleigh Mortgage Broker Kevin Martini has dedicated years to assisting individuals through the intricacies of marital home mortgage and real estate matters during such emotionally taxing times. This article, coupled with an insightful guide, aims to shed light on the common pathways and considerations surrounding the marital home, its mortgage, and the equitable distribution of assets amidst a divorce in North Carolina.
Embarking on the Journey
The financial implications of divorce extend beyond the immediate concerns, often intertwining with the marital home’s value, outstanding mortgage, and the equity held therein. Here’s a simplified pathway to understanding these aspects:
- Determining Your Home’s Worth: The first step involves an accurate appraisal of your marital home’s value. While online estimates provide a ballpark figure, a more precise evaluation can be obtained through the “What’s your home worth” tool below:
- Calculating What You Owe: With your home’s value at hand, the next step is to ascertain the outstanding amount on your marital home mortgage. Review your recent mortgage statement for the remaining balance, and if there’s a second mortgage or home equity loan, sum up these balances.
- Evaluating Your Home’s Equity: The final step involves calculating the equity by deducting the payoff estimate from the estimated value. This equity represents the gross funds you’d receive if the marital home were to be sold.
Exploring the Options for the Marital Home
Selling the Marital Home
Selling the marital home post-divorce is a straightforward yet emotionally challenging decision. Engaging a real estate professional with expertise in the local market can facilitate a smooth sale, ensuring you get top dollar for your home. The proceeds from the sale, after covering the mortgage and associated costs, are typically divided equally or as per the court’s equitable distribution.
One Spouse Retains the Home
If one spouse wishes to continue residing in the marital home and can afford the mortgage payments, a buyout of the other spouse’s share is a viable option. This scenario often involves refinancing the marital home mortgage to adjust the loan terms to the retaining spouse’s financial capacity. Kevin Martini and the Martini Mortgage Group offer specialized services in facilitating such refinances, ensuring a seamless transition.
Joint Ownership Continuation
In rare cases, couples continue joint ownership, either residing together in the marital home or renting it out. This arrangement requires a high level of cooperation and a clear understanding of the financial responsibilities involved.
In my professional experience as a Certified Mortgage Advisor, joint ownership continuation requires massive cooperation from both spouses.Kevin Martini
Martini Mortgage Podcast | Episode 191: Divorce and the Martial Home
Equitable Distribution and Mortgage Considerations
The court’s approach to equitable distribution of the marital home takes into account various factors, including the marriage duration, each spouse’s contributions, and the children’s welfare. If awarded the marital home, securing a mortgage under your name or refinancing the existing mortgage are crucial steps. Kevin Martini’s expertise in Raleigh marital home divorce refinance scenarios can be an invaluable resource during this phase.
5 Additional Tips by Raleigh Lender Kevin Martini
- Maintain Mortgage Payments: Continue making mortgage payments to safeguard your credit score and prevent foreclosure, irrespective of your residence status in the marital home.
- Open Communication: Engage in open discussions regarding the future of the marital home and mortgage. Reaching a mutual agreement can significantly reduce legal expenses and time.
- Preparation for All Scenarios: Be prepared for all potential outcomes, including selling the marital home or buying out your spouse’s share.
- Document Availability: Have all necessary financial documents ready to empower your attorney in advocating for your interests effectively.
- Expenditure Record Keeping: Maintain a meticulous record of all expenditures associated with the marital home to ensure a fair settlement during the divorce proceedings.
Kevin Martini’s Commitment
The journey through divorce extends beyond emotional turmoil, significantly impacting your financial landscape. At the Martini Mortgage Group, we are dedicated to assisting you in exploring your housing possibilities during this transitional phase. Contact us for a complimentary Financial Transition Plan, marking the first step towards making informed decisions amidst this challenging time.
Kevin Martini’s passion lies in empowering families to create generational wealth through real estate with the perfect mortgage strategy. His proprietary system has revolutionized consumer-lender relationships in the mortgage industry, leading to over a billion dollars in home loans originated since 2006. Recognized as one of the top 50 Mortgage Originators in the country, Kevin Martini’s contributions have been featured in esteemed publications like Forbes and CNET. He also hosts the Martini Mortgage Podcast, providing up-to-date, factual content on real estate and mortgages, and shares his knowledge through his Instagram and YouTube channel, offering a comprehensive understanding of the real estate and mortgage arena.
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.Today's Mortgage Rates