One of the most nerve-wracking and emotional experiences in life is going through a divorce. Family law in British Columbia makes the rules under which divorce falls. These rules also cover the family home. Some couples may wonder what happens to the home — especially when there is a mortgage involved. The first question that needs to be answered is whether the home will be sold or whether one person intends to stay; but the decision hinges on whether the individual choosing to stay would be able to qualify for a mortgage on his or her own.
Both parties should know that when their names are on title and on the mortgage, they are both financially responsible for the home, even when they’re not living there. Leaving one’s name on a mortgage can have an impact on qualifying for another mortgage. So, for the individual who leaves the home, it is important to remove him or herself from the mortgage.
Selling the home seems to be the easiest option since the mortgage is discharged and any profits are split. If one party decides to stay, he or she must qualify for a mortgage on his or her own. If the individual is in receipt of support payments, that may qualify as income.
Making a decision about the family home can be extremely stressful. Knowing something about the laws may help an individual to make a decision. A British Columbia lawyer experienced in family law may be able to help a client through the process, which can be confusing and filled with complexities.