When a marriage comes to an end, both individuals are left trying to pick up the pieces of their lives and find themselves feeling emotionally, physically, and mentally drained. People often describe feelings of fear, anxiety and hopelessness. When children are involved thoughts about their future, lifestyle impacts and coping with loss can also play out in your mind. All of these feelings can become overwhelming without the right support systems. One of the significant stresses that comes along with a marital breakup is having to deal with the financial affairs that require attention for both parties to move on.
During a marriage breakdown the biggest asset to address tends to be the matrimonial home. The end of a marriage does not mean the end of homeownership. A Mortgage Broker can help separating couples explore options:
The first option involves one of the partners taking over the current home and buying the other individual out of the property. This can be done by refinancing the house to pull out some or all of the home equity. Many people are not aware (mainly because not all banks/lenders offer the options), but by working with a Mortgage Broker you can gain access to lenders that allow refinances back up to 95% of the value of the home when going through a separation. This can make taking ownership of the family home much easier.
The second option would be to reassess both of your application, sell the current home and then utilize the equity from the sale of the home towards the purchase of two smaller homes. Giving both individuals the opportunity to gain a fresh start.
If you are facing a marriage breakdown, it is important to know that you are not alone and support is available. The tough part sometimes is making the first step by picking up the phone or send off that email. Our team of Mortgage Professionals understand the financial stresses that exist during a marital breakdown and we are here to help by providing timely and accurate advice on how to best handle your mortgage transition.