What Happens to a Mortgage During Divorce?

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.

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