Many Wisconsin couples who are getting a divorce own a home together. In some cases, a couple might agree to live together despite the divorce and pay off the mortgage. However, this is not a workable solution for many people, and if that is the case, the couple needs to find a way of splitting the asset.
If one person is going to take the house and remove the name of the other person from the mortgage, it is necessary to refinance the mortgage. This means that the person who gets the house must qualify on the basis of just one income. An additional down payment might be necessary, or the person may need for someone to cosign the loan.
The couple might choose to sell the house and take equity. Equity is the amount the house is worth minus what is owed on the mortgage, but it might not always be split equally. For example, prenuptial agreements, premarital assets and improvements made could all affect equity and how it is split.
People who are considering a divorce might want to speak to an attorney first about their financial situation. Wisconsin is a community property state, but there may still be flexibility in how property division is approached that is not exactly 50/50. A person might be able to discuss their own goals and concerns with an attorney who may then make suggestions about how realistic those goals are and what strategies might be best. An attorney may also help keep a person focused on financial security rather than trying to punish or appease a former spouse.
