Arrange a no-fault divorce. Have one spouse hold the house and assume the mortgage. The other spouse can then go purchase a new place at sometime in the future. The spouse holding the condo can then “Walk” on their mortgage and remarry the other who is now holding a fresh new mortgage.[/quote]
Good idea but one problem.
Husband can transfer the interest in the house to the former spouse. However, if the promisory note was signed by both spouses, then the bank will not let the husband off the hook unless the wife can qualify on her own.
So while husband can legally transfer his interest in the property to his wife, he is still liable for the loan, and both individuals’ credit ratings will be ruined if either one of them walk.
