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Financial Tips for Divorce: How to Handle Mortgages and Equity

Chad Rankin / Aug 21, 2023 / Expert Articles

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Divorce is never an easy process. Aside from the emotional turmoil and psychological stresses it imposes, there’s a labyrinth of financial intricacies to navigate. I’m Chad Rankin from the Rankin mortgage team in Worcester, Massachusetts, and while I'm no attorney, I've gathered enough insights over the years to see where there are gaps in understanding – and it's often in the financial realm.

With the recent surge in divorces since the onset of Covid, it's become evident that more people are grappling with the financial implications of their separations. I've observed, with genuine concern, that many individuals going through this emotionally taxing process aren’t necessarily being equipped with all the financial knowledge they need. It’s one thing to rely on an attorney for legal procedures and advice, but the financial nuances of a divorce are an entirely different ballgame.

When I hear the stories of those in the midst of divorce, I empathize with the weight of their situation. The challenges extend beyond the dissolution of a marriage. There's the potential sale of a home, the division of assets, the contemplation of individual and shared debts, and the big question: "What next?" It's a landscape filled with questions and uncertainties, many of which aren’t typically the expertise of divorce attorneys.

In the same vein, I've noticed parallel issues with bankruptcy attorneys. However, I'll reserve that topic for another day. Here, I want to hone in on the importance of consulting with a knowledgeable loan officer when wading through a divorce.

A seasoned loan officer brings a wealth of expertise to the table. They can provide guidance on:

  1. Splitting assets amicably: When two lives have been intertwined, separating financial assets can be intricate. An experienced loan officer can simplify the process, ensuring that both parties get their fair share.
  2. Making housing decisions: Should you both buy separate homes? Is it more viable for one person to refinance the current house while the other takes on a new mortgage? These are pivotal decisions that can greatly affect your financial health post-divorce.
  3. Addressing debts: Both individual and joint debts need careful attention during a divorce. A knowledgeable loan officer can recommend strategies, such as utilizing the equity in your shared home, to pay off these debts at or before closing.

However, remember that all situations are unique. What works for one couple might not be suitable for another. Hence, personalized guidance is paramount.

For those in Massachusetts, throughout New England (excluding Vermont), and down to Florida, know that you have a resource at your fingertips. While I'm licensed in several states, my primary goal isn’t just about business. It's about helping individuals find clarity in complex financial situations. I encourage you to reach out with your questions, regardless of whether you decide to work with my team or not.

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In conclusion, divorce is a challenging phase of life, laden with numerous decisions. But remember, while attorneys can guide you legally, it’s crucial to consider the financial lens as well. A loan officer, with a deep understanding of the financial world, can be a beacon during these turbulent times, ensuring that as you embark on this new chapter, you do so with a solid financial foundation.

Thanks for your time, and always know that guidance is just a call or message away.

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chadrankin

Chad Rankin

Hi, I'm a mortgage expert living in Massachusetts. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help? View Profile

Chad Rankin NMLS # 490282 Senior Loan Officer 324 Grove Street Worcester, MA 01605 (508) 928-4141 chad.rankin@findmywayhome.com

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About Chad Rankin

Hi, I'm a mortgage expert living in Massachusetts. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help?