Avoiding a Contempt of Court Issue with Divorce and Real Estate
A Contempt of Court issue when a former spouse fails to execute their obligations in the marital settlement agreement with regards to real estate and mortgage financing can be avoided if the right steps are taken in advance. There are many times when mortgage financing is a requirement post decree whether it involves refinancing the marital home to remove a spouse from the current mortgage, completing an equity buyout, or even for the purchase of a new home for one or both parties.
Unfortunately, often times the successful execution of mortgage financing requirements in many divorces fail. It fails not because of a lack of effort on behalf of the divorcing parties, but rather on other details within the marital settlement agreement. The two most common reasons why divorcing clients are unable to successfully obtain mortgage financing have to do with qualified income and credit. The best way to avoid these issues is to consult with a qualified divorce lending professional during the settlement process rather than after the martial settlement agreement is final—this can make a big difference in ensuring the successful execution of the marital settlement agreement and avoiding a possible Contempt of Court issue.
Please let me know if I can provide additional information to you on the various methods for holding ownership/title on real estate and the effects that divorce can play on this topic as well.
Always work with a Certified Divorce Lending Professional (CDLP) when Divorce, Real Estate and Mortgage Financing are present. Click here to find a CDLP in your area.