In our previous post, we began discussing the difficulties a couple can face when splitting up with respect to the family home. As we noted, many spouses going through divorce do not want to assume the often significant burden of a home mortgage. For those that do, there are certain risks in doing so

As we noted, one of the potential difficulties in taking on a mortgage is that it may be difficult to refinance, for a variety of reasons. In situations where this is the case, there are some possible options for the spouse willing to assume the mortgage.

These include looking around for a loan product with more flexible terms, taking advantage of the federal Home Affordable Refinance Program, finding a co-signer, and waiting for one year, during which alimony payments can be documented for income qualification purposes.

In terms of finding co-signing a loan, one of the challenging factors is that it is rarely going to be beneficial personally for the co-signer. Another potential challenge to keep in mind, particularly for those who are low on funds, is that refinancing can sometimes cost as much as several thousands of dollars. Not everybody will have that kind of disposable income, particularly in the midst of a costly divorce.

In some cases, it may make more sense financially for a couple to sell their home. Of course, the decision to keep the family home must be financially feasible. Even where it is so, the decision to keep the home will likely involve sacrifice.

Financial decisions are often difficult when it comes to divorce. Realizing this going into it can make the process a bit easier, though.

Source: Nasdaq.com, "How to divorce your mortgage," Marcie Geffner, January 26, 2012.