22 Dec What Happens if I don’t Comply with my Agreement to Refinance my Home after my Divorce?
New Jersey adheres to the doctrine of equitable distribution when resolving property division issues as part of a divorce. In many instances, part of the property division agreement involves one spouse retaining the marital home and “buying out” the other spouse’s ownership. As part of this process, the person relinquishing their right to the house must be removed from the mortgage. This is important for several reasons:
- It protects this spouse’s credit score down the road
- It relieves this spouse of financial obligations associated with the house
- It increases the likelihood this spouse will be able to obtain a new mortgage when purchasing a new home
In order to complete the refinancing process, a new deed will need to be drafted that only contains the name of the spouse who is keeping the house. However, this deed isn’t sufficient to complete the process. The spouse retaining possession of the house must actually refinance the mortgage in order for the other spouse to be removed and receive their money.
Unfortunately, there are many situations where the spouse keeping the house refuses to cooperate with the refinance. If this occurs, you can obtain a court order requiring your ex to comply with the refinance agreement. In the event that your ex fails to comply with this court order, the court may impose the following consequences in order to protect your rights:
- Order the home to be sold
- Grant you power of attorney to list the house for sale with a realtor
- Remove your spouse from the home if they fail to cooperate with the realtor or grant the realtor access to the house
These protections are important, and they ensure that you have the ability to safeguard your financial reputation. Otherwise, your credit score may be seriously damaged in the event that your ex fails to make the mortgage payments.
It’s crucial that you follow up with your spouse to ensure the mortgage gets refinanced. If your spouse fails to comply with this agreement, Mr. Bloom can help. He will fight for your rights aggressively in court to ensure you’re not financially liable for payments that no longer belong to you.
If you need assistance with a family law matter, please contact the Law Offices of Jeffrey M. Bloom using the form at the top of the page or call (855) 208-3650 today to schedule a consultation. Mr. Bloom serves clients in West New York, and throughout Hudson County and Bergen County, New Jersey.