Jordan Fylonenko asked:




Divorce sucks. Celebrity divorces – well, they suck even more. The multi-million dollar mansion in West Hollywood, the villa in the south of France, and the twelve cars parked in the driveway are all up for grabs when a celebrity couple calls it quits.

It’s no secret that divorces get nasty, especially when there are millions at stake (no pre-nup?). Who gets the house(s)? How much is child support?

Dealing with mortgages in West Hollywood is nothing to scoff at. When millions are on the table and tensions are high, how do these stars get out of their home loans and move on with their glamorous lives?

Move On and Sell Your Home

One of the best ways to get out of the mortgage is to sell the house. The money earned from the sold home can be used to pay off the existing mortgage. The rest of the funds can be split about between spouses. Selling the house gives you freedom from making monthly mortgage payments, taking care of the house, or paying taxes and insurance.

One thing to remember is that the home being sold often has a sufficiently reduced mortgage payment which makes finding a mortgage with the same affordable monthly payment unlikely.

Kick ‘Em Out and Refinance

The second and most common option in dealing with a mortgage is when one spouse keeps the home and then refinances. Usually the spouse that is leaving will give up his or her claim on the house. The secured debt is refinanced into one spouse’s name in an amount sufficient to satisfy the old joint debt and to provide a cash buy-out for any equity the other spouse may have in the asset. Generally, this is the good way to satisfy debt and credit issues as part of a divorce.

It’s vital to remove the name of the spouse who is leaving from the mortgage. Forgetting to do this will keep divorced couples closely tied to each other. When one person fails to make payments on the mortgage, both parties’ finances and credit ratings will fall. Until the refinance is final and the deed on the home has been legally changed, both spouses are still responsible for payments on the house.

Whether you’re a star or just act like one, divorce can hit hard. Make sure to be prepared and know your options. Hiring a good divorce lawyer won’t hurt either.

Brenda