Nearly half (42%) of all UK marriages end in divorce. And perhaps the most stressful part of the divorce process involves the family home. 

What happens to a mortgage in a divorce?

What are your options?

1 – Keep paying the mortgage together

Even if you divorce, it’s possible to both remain named on the mortgage and keep making payments as you did when you were married.

Using this approach it’s best to agree to a set plan, to avoid any misunderstandings and disagreements further down the line. For instance, you could agree to sell the property on a set date in five years time when it has built up more equity. 

Many younger divorcees choose to opt for this if they’re committed to a fixed-rate mortgage or would face substantial early repayment charges.

2 – Selling up

This is often the most emotional step, and is less ideal for future divorcees with children, but selling a house after divorce is also one of the best ways to get a ‘clean break’ and allow both partners to move on.

When you sell the house in a divorce, any equity that you have earned from the property will be deemed as a marital asset and split between the two of you. How much each party receives is dependent on a number of factors and is best agreed using mediation or through your family law solicitors.

3 – Buying out a partner

Many couples are able to come to the solution that sees one party come into sole ownership of the property. It’s relatively simple to remove a name from a mortgage after divorce: all you need to do is buy the other partner’s share in the property, including any equity that had been built up.

While this is an excellent option for young families who want to retain a sense of permanence and security, it can be hard, particularly in tough economic times, to convince lenders that one party can afford the property on their own. It’s important to note that the lender has no duty to remove one name from the mortgage or transfer it solely to another party.

Speak to family law experts

Whether you’re in the middle of an amicable divorce or are undergoing a slightly more stressful affair, it’s important to talk about your divorce with experienced lawyers you can trust.

For solid, friendly legal advice, speak to Howells today – call 02920 404014 or email info@howellslegal.com.

by Richard Scott