If you and your spouse have made the difficult choice to end your marriage in Wisconsin, you will now have to move forward with making many other difficult decisions. For many couples, one of the hardest things to wrap their emotions around is letting go of their family homes. Certainly there is a big emotional tie to a home especially when small children are involved. However, you should think twice before agreeing to let your spouse keep the house without any changes to your mortgage.
As explained by Time Money, you need to realize that banks look at mortgages and houses as two separate items. You may have a divorce decree that identifies your spouse as the person responsible for the mortgage. You may have even signed a quit claim deed that puts the home in your spouse’s name only. But if the mortgage has your name as well as your former partner’s name on it, you can still be held responsible for that debt.
Imagine that your ex gets laid off from their job and stops paying the mortgage. Not only can the bank come after you to make payments but your credit score may take a beating for any payments missed by your prior spouse regardless of what your divorce decree says.
This information is not intended to provide legal advice but is instead meant to provide an overview of the financial factors people should take into consideration when deciding how to handle their homes and mortgages during a divorce in Wisconsin.