Today, a martial home can be more of a burden than an asset during a divorce, especially if the couple has found themselves with an underwater mortgage. This has left many divorcing couples in a predicament when it comes to asset division.

Oftentimes, neither party wants to take over a loan that is exceeds the value of the home, so the parties decide to sell the house. However, the parties soon find out that the buyer will have to provide a cash payment or the lender will have to approve a short sale, which can take several months.

If one party decides to stay in the house, it presents other potential problems.

One is that if both parties' names remain on the mortgage, both parties can be held responsible for making the payments, even after the divorce is final and only one party is living in the house. It can also prevent the spouse who moves out from qualifying for their own mortgage.

Another is that it is very difficult to get one party's name removed from a mortgage because lenders would rather have two people to hold accountable instead of just one.

A solution to these problems is to have one spouse refinance the mortgage. It is preferable that the spouse who will remain living in the home is the one to refinance the loan because lenders are only obligated to work with the person whose name is on the mortgage.

However, sometimes the spouse who stays in the home will not be able to refinance on his or her own, especially for a house with negative equity. This is where a few additional options come into play.

First, the individual could shop around for a different lender. Second, he or she could apply for the federal government's Home Affordable Refinance Program (HARP), which allows refinancing for underwater mortgages. Finally, a co-signer is a valid option option.

Source: Nasdaq, "How to divorce your mortgage," Marcie Geffner, Jan. 26, 2012