Some people in Georgia who are getting a divorce might want to keep the family home. However, there are a number of factors that should be taken into account. People should consider their income, the value of the house, whether they can refinance the house and if they will be paying or receiving alimony, among other considerations. A person may want to meet with a mortgage specialist to discuss specifics.
It may be necessary to either refinance the home or apply for another mortgage in order to remove the other spouse from any financial obligations. However, this may come with complications. During a divorce, for various reasons, people may fall behind on their bills and their credit rating may drop. Lenders may have requirements that a person has been receiving a certain type of income for a period of a few months to a few years. This includes alimony, part-time income, commission-based income and bonuses.
Holding onto the family home is sometimes largely an emotional decision, but it may not be the right decision from a financial standpoint. However, purchasing a new home presents challenges as well. For example, a lender may require a cosigner if a person's income is not high enough to qualify for a mortgage.
People who are going through a divorce may want to consider other ways of protecting themselves financially. The standard of living may drop for people who are divorced because maintaining two separate households is usually more expensive. Furthermore, divorced people may face other financial challenges. For example, a person may struggle to keep up alimony and child support payments, or a person who was supported by a partner might struggle to make ends meet on these payments. Couples who are near retirement may find their savings cut in half.