Whether you cosigned a mortgage for your spouse or a relative stepped up to cosign for you as a couple, getting out of this financial arrangement after a divorce can require a great deal of money.
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Dividing Debt During Divorce. As a part of a divorce judgment, a family court usually tries to divide debts and assets as fairly and equitably as possible. Sometimes, this means splitting everything right down the middle. Other times, one spouse may receive more property to.
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Selling the home after the divorce: If you decide to wait to sell your home until after your divorce is finalized, each partner can still claim the full $250,000 exclusion, assuming you meet the two-year residency requirements. But pay attention to the time limits – you’ll want to sell before three years have passed to avoid paying capital.
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Some ex-spouses jointly own the family home after the divorce, usually to accommodate the kids until they finish school, Chen says. In that case, both should be listed on the home insurance policy.
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For the sake of our other readers, "The Break-Up" is about an unmarried couple that buys a condo in Chicago but soon splits up. Neither will move out, so both hunker down to devise ways try to.