Always be mindful that there is a big difference between being on the title, and being jointly responsible for the mortgage obligation. Being on the title means you have an express ownership interest in the real estate. Depending on your state law, you may have a marital interest in the property simply because you are married, even if your name does not appear on the house title or Deed. Being on the mortgage means you are either individually or jointly responsible for the debt against the house, without regard to whether you have an ownership interest. Depending on your financial situation, another mortgage company may not want to approve you for a new mortgage if you are already responsible for an existing mortgage. Normally, the house will need to be sold, or your spouse will need to refinance the mortgage into his or her individual name, to absolve you from responsibility on the mortgage. If your individual credit or income was not considered when the mortgage was first approved, the mortgage company may voluntarily release you from the mortgage. That release is called a novation. Such a release is uncommon, because most mortgage companies want all possible parties to remain responsible for the debt until it is paid in full. Removing your name from the title (Deed) to the property does not change your mortgage responsibility. In Kansas, the divorce court has jurisdiction to equitably divide the equity from the residence, which is marital property because the house was purchased during the marriage. Note that some of the equity in the property may be deemed to be non-marital if some of the funds used to pay the mortgage came from non-marital sources, such as a parental gift or an inheritance. Consult an experienced family law attorney for advice regarding your specific situation.
Answered on Feb 10th, 2014 at 9:15 PM