Once the "I Do's" turn to I am done, there are many matters to be addressed. A divorce is an emotionally complicated time, and it may be most helpful to both parties if they can approach it as a business transaction that can be handled as dispassionately as possible. Florida residents who are facing a high asset divorce may benefit from seeking the skilled assistance of a family law attorney.
There are a myriad of concerns when working toward a divorce settlement. Though it may not seem to be a priority, this may be the most opportune time to inquire about refinancing a family home. There are several good reasons to pursue this option, first being to preserve one's credit. Though many believe that simply removing a name from a title will negate the possibility of one's credit being blemished, unless the former spouse's name is also removed from the mortgage loan, then any missed payment can have long-term financial repercussions. A second reason to refinance is to have the resources to buy out the spouse who is giving up his or her interest in the home, if that is the path that the parties agree upon.
In the event that there are debts that need to be paid off, then a refinance to obtain the equity in the house may help one get on firm financial footing. Likewise, having access to an emergency fund may also make a refinance attractive. If the existing mortgage is an adjustable rate mortgage, then converting to a fixed rate or extending out the time for the variable rate to kick in may make monetary sense.
Lastly, the opportunity to lower mortgage payments through a refinance may also be a powerful motivator. A high asset divorce can be a costly undertaking -- in many ways -- and though it may be an end in some ways, it is also an opportunity to begin again. Florida residents who are in the early part of this process may benefit from the guidance of an attorney who can help fight for a fair financial settlement for the client's future.
Source: Forbes, "Til The House Do Us Part: The Top Five Reasons To Refinance After Divorce", Jason Crowley, CFA, CFP, CDFA, Accessed on March 12, 2018