The end of a marriage not only takes an emotional toll on those involved, it also poses significant financial challenges. During divorce proceedings, spouses must determine what to do with a variety of assets, including the house. Given the financial consequences related to dividing this significant asset, decisions made regarding the house may be some of the most important aspects of any given divorce settlement process.
Mortgages are considered to have gone underwater when the debt owed on the loan is more than your house is worth. This is a complicated financial situation often arising from refinancing done on your mortgage, and it can take time to build back equity and bring the mortgage above water. But if you carry an underwater mortgage into divorce proceedings, you may be pressed into taking action on the dividing the mortgage debt, and this can be complicated.