Yesterday on our Somerville, New Jersey, family law blog, we began discussing some of the challenges divorcing couples face when it comes to handling the division of assets and liabilities, especially the family home. Although the home was once considered a great asset, more divorcing couples are trying to rid themselves of the liability.

Unfortunately, not all New Jersey couples have the option of selling their home after divorce if their homes are worth less than what they owe on their mortgages. If divorcing couples must keep their homes, or if they want to keep their homes, they should pursue the financial risks and benefits of their remaining options in order to minimize the financial impacts of keeping the home.

If a divorcing husband and wife choose to keep their home, they should understand the financial risks that are associated with keeping a home after divorce. The primary concern in this situation is the division of payments. Divorcing couples have a variety of financial options regarding their home mortgage during a split, but perhaps the most risky mortgage situation happens when both parties choose to maintain the mortgage. In this situation, if one person fails to pay, the innocent party's credit score could take a significant hit.

If one spouse agrees to take responsibility of owning the home, refinancing may be a great way to save money on mortgage payments. However, those interested in keeping the house and refinancing it should make sure that they will be able to qualify for a loan on their own before making any agreements. Lenders are oftentimes hesitant to remove one spouse from the mortgage, or one's income or credit score may not be sufficient to qualify for a mortgage on their own.

Ultimately, New Jersey couples face a variety of options in handling their home mortgage when divorcing, but they should take the time to make sure that any decision regarding the home makes financial sense and benefits the entire family.

Source: NASDAQ, "How to divorce your mortgage," Marcie Geffner, Jan. 26, 2012