Legal Question in Real Estate Law in North Carolina

You are putting the car before the horse. First, you are divorcing. As part of your divorce/property settlement, you will be equitably dividing your debts and assets. If one of you wants the house, the person who wants it will have to refinance it solely in their name and as part of the deal, whoever does not want it can quitclaim his/her rights in the home to the other person.

In a situation where neither can afford to keep t he home, then it needs to be sold and the mortgage debt paid off and the parties can split any remaining equity.

If one party wants to keep the home but cannot afford to get refinancing, then you are in a real bad way if you are not the party who will be staying in the home. What will happen is that if the spouse who wants to live in the home does not pay the mortgage and both are on the mortgage, then the other spouse is going to have his/her credit trashed. And if liability is discharged in bankruptcy, then the bank can come after the other spouse. But it depends on what kind of bankruptcy is filed and what the spouse who is filing bankruptcy intends to do with the house.

I suggest that before you make a very costly mistake that you see a divorce/family law attorney and get things worked out properly before you divorce.