House in both our names

My husband and I seperated in January 2010. We have not yet filed for divorce but will be very soon. I picked up papers for an uncontested divorce, we are in North Carolina. This doesn’t include child support or properties, and says that it is final or we can’t go back and change anything after it is done. We own a home together that niether of us live in and is being rented out. We both make about the same amount of money and neither can afford a lawyer, that is why we just wanted to file uncontested. He has taken care of collecting the rent and any matienence issues. My grandmother gave us $20,000 as a down payment in 2006 when we moved in, so she thinks I should have the house. The mortgage is underwater. I Have heard to get it put in his name only we have to refinance, and neither have good enough credit. What happens if the house stays in both of our names after an uncontested divorce?

In a nutshell you will continue to own the home, but your ownership status will change from tenants by the entirety (joint married owners ) with a right of suvivorship (if one of you dies the other becomes the sole owner) to tenants in common, where each of you owns 50%. If one of you were to die, the 50% interest would go to your estate, not the other spouse.