Couples seeking separation in Reno often make decisions about divorce outcomes before entering negotiations or seeking counsel. Unless they receive sound advice concerning finances after the divorce, these decisions can end up being costly mistakes. Some of the most disastrous financial decisions revolve around keeping the family residence.
Emotions surrounding the property, the desire to maintain child custody and protecting the emotional stability of children could all factor into the determination to keep the family home. However, serious problems can arise if the home is still under mortgage. The custodial parent is often left with only two options: they can pursue a new mortgage or seek a refinancing deal that removes the financial obligation for the home from their ex-partner.
In order to make payments, the owner may be planning on relying on spousal support. However, many banks want to see several months of received alimony before considering support as a source of income. The spouse may also be unaware of credit damage suffered prior to and during the divorce. Recovery from a lowered credit score is possible, but it may not happen in enough time to save the home.
Even without these issues, newly single parents in Nevada may face significant financial challenges. Successful property negotiations require both a determination of what is needed to meet goals and the consequences of taking over ownership. An attorney may be able to help by explaining the dangers of tax consequences, debt obligations and other divorce legal issues regarding property division. This advice could prevent significant financial hardship from following in the wake of a divorce.