With Mortgage Rates Soaring, Divorcing Couples Seek Creative Ways to Deal with Who Gets the House
There is no doubt that one of the key issues in many Chicago divorces is about who will keep the marital home. While some divorcing couples may be able to forge an amicable solution to who will stay in the home they created together, other couples must take the fight to court and get an order from a judge on the issue. However, another housing issue has entered the ring in many Chicago divorces where one soon-to-be-ex spouse wants to keep the house, but refinance in their name, and their name alone. That issue is soaring mortgage rates in Chicago throughout the United States. But what can Chicago couples do as interest rates climb when it comes to sorting out the family home in a pending divorce? Here we explain the problem soaring interest rates have presented in Chicago divorces, and what Chicago couples can do when it comes to working out housing issues in their Chicago divorce.
A Story of a Mortgage: How Rising Interest Rates Impact the Divorce Process
According to MarketWatch, 44-year-old soon-to-be divorcee Ann Shea was presented with the problem rising interest rates create when finalizing issues of the home in a divorce last year. Shea bought the marital home in 2012, and was able to refinance it to a rate of 2.8% during the COVID-19 Pandemic. However, she was shocked to learn that if she refinanced the home in 2024 to put the home only in her name, she would be looking at a 6% mortgage rate, a significant bump from her current 2.8% rate. Thus, as MarketWatch explains, “Shea’s plight is becoming more common. As mortgage rates soared from historic lows during the pandemic to two-decade highs at the end of 2023, homeowners with rates under 3% became the envy of their friends and families. But when a marriage splits up, the question of who walks away with the lower mortgage rate sparks far more than casual jealousy.”
Creative Solutions to Splitting Real Estate Assets when Mortgage Rates are High
With current mortgage interest rates much higher than they were just years ago, divorcing couples are turning to creative strategies to divide up real estate assets in the divorce process. One way to deal with the problem of higher mortgage rates is to agree to co-own the property. Another strategy is to remain living in the same home for a certain number of years, and waiting for interest rates to fall before refinancing. Of course, to determine the best strategy for your particular divorce case in Chicago, it is best to speak with an experienced Chicago divorce lawyer as soon as possible about your rights and options.
The experienced Chicago divorce lawyers at Birnbaum Gelfman Sharma & Arnoux, LLC, are here to help individuals in Chicago with their Chicago divorces. Contact Birnbaum Gelfman Sharma & Arnoux, LLC today and speak to an experienced Chicago divorce lawyer about your unique case.
Source:
marketwatch.com/story/a-new-issue-in-divorce-who-keeps-the-mortgage-rate-61ee2efe
