If you bought your home after your wedding date and before you or your spouse filed for divorce, Alabama law considers it marital property. Both spouses may claim an equitable or fair share of property purchased during the marriage. Before a judge decides how to divide your marital property, you could negotiate an arrangement on your own, as noted by SmartAsset.
A careful review of your financial circumstances could help you work out an agreement. You may also need to prove to the court that you could afford to maintain the home’s property taxes and insurance. If your home has a mortgage, you may need to show how you plan to make the payments.
How may I handle a joint home loan?
You could consider refinancing a joint home loan. As noted by Bankrate.com, when applying for a new mortgage, only one spouse’s name needs to remain on the loan. The other spouse will then no longer have any responsibility to make payments.
You may also use your home’s equity to apply for a new mortgage that provides a cash payment. This allows you to pay for your soon-to-be ex-spouse’s fair share of the property. You could then take full ownership of your home after your spouse receives the cash for his or her share.
What if I lack steady employment or good credit?
When you apply for a mortgage, you could submit court-ordered support payments as proof of income. You may also need to find a co-signer or joint borrower if your credit score prevents you from qualifying.
Some couples decide to sell their shared home and then work out how to split the proceeds. Alabama divorce courts, however, generally require couples to first agree on a fair division before approving a final order.