What Happens to the Mortgage in a Divorce?

It's common to assume that once you separate, you're off the hook for the mortgage. Unfortunately, lenders don't see it that way.

(For related financial concerns, see "Burying the Bills" on page 18 of the Divorce Selling Guide.)

1. Joint Mortgage = Joint Responsibility 

Even if you move out, you're still liable unless the loan is refinanced or the home is sold.

2. Sell the Home 

Clean break. Proceeds pay off the mortgage, freeing both parties.

3. Refinance in One Name 

Keeps one spouse in the home, but they must qualify solo.

4. Co-Own Temporarily 

Requires careful planning and documentation to avoid problems.

Always confirm your plan with both your lender and attorney.

Download my free guide - Selling a House During Divorce - for more helpful information!