You and your spouse have a mortgage on your home. You bought it together five years ago. Since that time, however, you’ve decided to get divorced.
What you don’t know is what you should do about that mortgage. You’re both on it right now, so you’re both responsible for the payments. You’re going to be splitting up all of your assets in the divorce, so how will this impact your loan and your house?
You can keep the house
If you’re interested in keeping your home, this is possible. You will likely have to give your spouse other assets or pay them directly to make up for the share of the home that they own.
However, if you do this, you will probably need to get a new mortgage. If you do not, both you and your ex would still be liable for the payments, just like you are now. This wouldn’t change much from your perspective, but it would be a risk for your ex to stay on the mortgage with you. If you missed any payments, the lender could theoretically ask them to pay, even if it was a decade later.
Do people stay on the same mortgage?
It is technically possible to remain on the same mortgage. Your lender isn’t going to have a problem with it just because you got divorced.
For example, some couples believe that the housing market is going to go up in the next few years. They agree to own the home together until the value of the house rises, then they sell it and split more money than they would have made otherwise. Other couples do it because their children don’t want to move, and so they keep the same home until those children graduate from high school.
If you do decide to do this, however, it’s important to understand the risks noted above. This is especially true if you are not the one who is going to keep the house, but your ex is. Be sure you fully understand all of your obligations and the legal options you have when determining how to proceed.