What happens to a underwater mortgage property in a divorce? Can one spouse keep the house and make the mortgage payments with possible alimony payments?
If the parties agree to a resolution, the court can and will ratify it if possible. So your alimony hypothetical cold certainly happen. Underwater property can be handled in a number of different ways. The parties can agree to sell the house and split the remaining debt or one party can assume the marital house and actually have it count as a marital liability for the purposes of equitable distribution. Sometimes the parties just walk away from a property and take their chances with the bank.
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Yes, one spouse can keep the house and make the mortgage payments. The entire financial circumstances of the parties must be reviewed in order to determine if alimony is appropriate.
R. Jason de Groot, Esq., 386-337-8239
You definitely want to speak with an attorney. Even if you or your spouse were to quit claim the deed, the other party will likely still be on the hook financially which means if the other party fails to make the payments the bank can still come after the other spouse. Alimony is a possibility depending on a number of factors including employability, length of the marriage, etc. Contact an attorney to help you. Most offer free consultations.