Divorce and Family Law Office of Joanne Kleiner

Divorce Lawyer Joanne Kleiner

Archives for December 2023

Dec 09, 2023

How a Divorce Affects Your Home and Mortgage

When it comes to a divorce, you have to make plenty of decisions. If you own a mortgaged home together, you will need to decide your next steps. From selling your share to buying out the other person, you have a few options for your home.

Dealing With Joint Ownership

When a couple purchases a home together, both spouses are considered co-owners on the mortgage unless other arrangements have been made. That means they share the responsibility for the house payments. Even if one spouse decides to move out during the divorce proceedings, they are still legally responsible for the mortgage until the property is sold or refinanced in one person’s name.

If you decide on continued joint ownership after your marriage ends, the lender is not obligated by the divorce agreement. That means if the spouse is responsible for the mortgage and defaults on payments, both parties may have to face the consequences, including negative impacts on their credit scores. Some lenders may work with divorcing couples to find solutions that prevent foreclosure.

Dealing with this shared responsibility can be challenging, especially if one spouse wants to keep the property. In those cases, you need to determine who will manage the mortgage going forward. If you can work out this part of the process, you can avoid any contentious disagreements in the future.

The Challenges of Refinancing a Home

If your spouse keeps the home, you may need to refinance the mortgage in their name. As a result, that individual will retain ownership. Refinancing can untangle the financial ties of the marriage. With that, it creates a new mortgage agreement. Plus, the departing spouse is free from financial responsibility.

However, this process is not always easy. The spouse taking over the mortgage must qualify for the loan based on their own creditworthiness and income. This can often be challenging when the person lacks sufficient income or a strong credit history to meet the lender’s requirements.

Consider a Sale of the Property

For many couples, selling the marital home is the most common solution to the mortgage dilemma. All of the sale proceeds are used to pay off the existing mortgage. This solution gives both spouses a complete break.

However, selling the marital home may be emotionally challenging and perhaps not financially feasible at the time. Keep in mind that this option also eliminates the need for ongoing communication and financial entanglements with your ex-partner. If you had a contentious marriage, selling the home could be the most viable option.

Rent Out the Property

Renting out the marital home is a practical solution during this time. Rather than hastily selling or buying out the property, both parties may want to lease it to tenants. The rental income can be used to cover mortgage expenses. This arrangement is beneficial when the real estate market is unfavorable for a profitable sale.

Once the market improves, you can put the house up for sale. However, you and your ex-spouse need clear communication and an agreement regarding responsibilities, rental income distribution and the duration of this arrangement to avoid potential conflicts.

How Can an Attorney Assist?

Managing a mortgage during a divorce can be highly complex. For that reason, you may want to get advice from a divorce lawyer. A legal professional can provide guidance in drafting agreements that clearly outline each party’s responsibilities and rights.

When it comes to divorces, you can take control of the situation and settle the mortgage issue without involving the court. No-fault or uncontested divorces are excellent options that promote a mutual agreement between the spouses.

Mediation, arbitration and collaborative divorce are other alternative methods that help address the complexities of the mortgage issue through structured yet cooperative environments. With that, you can settle the mortgage issue in a way that is both fair and agreeable to both parties.

Reach Out To a Pennsylvania Divorce Lawyer Today

If you are looking to resolve your mortgage issue during a divorce, book an appointment with the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania. With over 35 years of experience, we have helped numerous clients reach amicable divorce agreements. You can schedule a consultation by submitting our online contact form or by calling us at 215-886-1266.

Dec 05, 2023

Should You Choose Collaborative Divorce?

With a success rate of 86%, collaborative divorce offers couples in Pennsylvania and around the country an alternative to litigation. If you want a divorce process that helps you and your spouse work towards an amicable resolution of your issues, a collaborative divorce might be right for you. While it might not work for all couples, you can benefit from this alternative to litigation in both the short and long run.

Understanding the Collaborative Divorce Process

In a collaborative divorce, you and your spouse will each work with your own respective divorce lawyer and other members of your divorce team to collaborate on resolving the issues of your break up. The goal of this process is to foster a relationship focused on problem-solving between the spouses. The steps to achieve this include:

  • Gathering your team of professionals to support and guide you during this process
  • Signing an agreement at the beginning that commits both spouses to this format without either being allowed to file anything in court until issues are resolved together
  • Understanding that if communication and negotiations fail each person’s team will be dismantled
  • Committing to being honest and transparent about the disclosure of information during the work sessions
  • Filing a divorce agreement in court after successful negotiations

What Issues Can You Resolve During the Collaborative Divorce Process?

If you choose to collaborate on your divorce process, you can resolve most, if not all, of your issues. Some of these include:

  • Asset and debt division, including insurance policies, investments and retirement accounts
  • Child custody, including parenting time and schedule
  • Child support payment details
  • Alimony or spousal support agreements

Short-term Benefits

This collaboration process allows you and your spouse to resolve issues out of the courtroom, keeping your information private. Working together and focusing on the issues can also help you work towards a faster divorce, saving you money. It will also allow you both to develop positive communication skills, which can improve your relationship, and it can even help you on your parenting journey as you continue raising your children after the divorce is final. Finally, a collaborative process can make it easier for you to heal emotionally since the feelings are positive and productive rather than spiteful and acrimonious as is found in some litigated divorces.

Long-term Benefits

A collaborative divorce allows you and your spouse, along with each person’s divorce lawyer and team, to negotiate over your assets and debts, helping you to find creative solutions to set you up for a stable financial life moving forward. You also become an example for your children by demonstrating your ability to solve problems and your commitment to them as a family, something that might not be possible in a dramatic courtroom battle.

When is Collaborative Divorce Not the Best Choice?

While the collaborative divorce process might be intriguing, there are situations where it might not be favorable or possible to engage in it. For example, if there is a history of domestic abuse and one spouse fears for their safety around the other, then collaboration is not an option. Another reason why it might not work is if your relationship with your spouse has deteriorated so much that you simply cannot get along or even speak to each other since open and amicable communication is at the center of this process.

Committing to the Process

The success of collaborative divorce hinges on the commitment of both spouses and their teams to negotiate in good faith. If both parties are willing to do this, there is a good chance that you will arrive at a fair resolution.

If you are interested in exploring the collaborative divorce process, you can call us at the Law Office of Joanne Kleiner at 215-886-1266 to schedule an appointment at our Jenkintown offices. We are ready to help you solve your issues out of court. You can also fill out our contact form to request a consultation to find out how we can help you achieve an amicable divorce that allows you to look positively at the future.