Ex-wife loses house after damaging ex-husband's credit

It may be a commonly held belief among New Jersey residents that once a divorce decree has been signed by a judge, everything is over. That is not true. Many things can change after this and what spouses thought was history can become current news again. Child support and alimony are some areas where ongoing changes can happen but they are not the only ones.

Of all of the marital assets to be split, the family home is one of the most common. Some couples opt to sell the home during their divorce and share the proceeds accordingly. When one spouse prefers to keep and live in the home, that can be done by either a buy-out process or by giving the other spouse another asset or set of assets of similar value. There are many variations on how this may play out. Regardless of the details, the person who retains ownership of a home should ideally obtain a new mortgage in his or her name only.

One former wife kept her former marital home but did not refinance the mortgage. After missing some of the payments, her former husband’s credit was adversely impacted. The husband brought the issue to court to seek help for his now damaged credit rating. The judge’s decision was clearly in support of the husband as the home was ordered for sale with the wife bearing the financial responsibility for maintaining it while it was on the market. Failure to do so could result in her eviction from the home.

Understanding what can be required even after a divorce is finalized is important. People embarking on a divorce may wish to talk to a family law attorney to learn more.

Source: The National Law Review, “New Jersey Court May Force Sale of House Post-Divorce,” December 3, 2015