Divorce is a long-term decision with financial ramifications. If you're
facing a divorce or dissolving a civil partnership, you probably have
a lot of questions about money, your rights, and the law. If you own a
house, one of the most important parts of the divorce process will involve
your mortgage and the question, "What happens to a mortgage during
divorce?" Most families have three options:
- One spouse keeps the home
- Immediately selling the home
- Selling the home in the future
Regardless of the option that you and your spouse choose, it is imperative that you
continuing paying your mortgage during the divorce, even if the payment seems unfair or inconvenient.
Who is liable for the mortgage payment?
Many couples agree to jointly own the property. This means that both individuals
are completely responsible for mortgage payments. If you and your partner
fail to keep up monthly payments, the mortgage company can seek payment
from you, your spouse, or both of you. If one spouse continuing living
in the house during the divorce process, the court may order
spousal maintenance so that he / she can afford the mortgage.
Transferring the Mortgage
If one spouse agrees to assume full responsibility for the mortgage and
continue living in the home, he / she must have enough money to continue
making payments. Before the mortgage company will allow you to transfer
the property, you must demonstrate that the other party has the financial
means to pay for the house. If neither spouse can continue making the
mortgage payments, selling the home may be their best option.