Divorce and Your Mortgage

Divorce or separation is an incredibly stressful time. Made even more so by having to split the family home or buy out your partner. Deciding who gets what often leads to acrimony and upset, making things messy and complicated. Whether you decide to buy out your partner or sell the family home and split the profits, it’s vital you’re absolutely clear on how each of these options could impact you financially.

Refinancing to buy out your partner

Sometimes it makes sense to keep the family home, by buying out your partner’s share of the mortgage. If both you and your partner are listed on the mortgage agreement, you can’t simply take over the mortgage. You will need to refinance the mortgage in your name only.

As with any loan application, refinancing your mortgage after a divorce or separation means proving that you qualify for finance and that you meet lender’s lending requirements, like:

  • Proof of steady employment and an income that is sufficient to repay the loan.
  • A good credit and repayment history.

It’s a good idea to do a credit check before you apply for any new finance, to make sure that you haven’t missed any repayments or had any defaults lodged against any joint accounts you hold with your ex-partner.

And if you are considering refinancing after a divorce or separation, it pays to talk to a Loan Specialist like myself – who can help you plan ahead and guide you through the refinancing process.

Selling and dividing the profits

In some instances, both parties choose not to stay in the family home and instead move out. In this case, the easiest approach is to sell the property and then divide the profits once the mortgage and any fees are paid out. This way, both partners have a chance to start afresh using their share of the profits to finance a new home.

If you do choose to go down this route, it’s best to seek legal advice as it can be tricky agreeing on sale price and the split of profits in a divorce or separation situation. But, if you are both listed on the mortgage agreement as the owners of the property, then both parties need to agree before any decisions can be made.

Starting again

Divorces are hard on you, not just emotionally but financially too. Financial hardship in a divorce can lead to missed mortgage repayments which could impact your future borrowing power.

If you are going through a divorce or separation, it’s important you do all you can to reduce the financial impact and any loss, and ensure you are in the best position to start again. Get financial advice from a mortgage broker office who can help you plan out your future finances and get you back into your own home again.

First-time buyers

Mortgage Calculator

Contact our office with any questions, concerns or ideas.  No Question is too small. 

Social Share

Kernel Security Check Failure How to Restart the Kernel in Windows 10

You’ll see this error when there’s a problem with the service key, or more than …

Read More

Raspberry Pi OS: Betriebssystem und Anwendungen aktualisieren

Außerdem benötigen Sie für die Installation Zeit und Ruhe, da es sich um ein neues …

Read More

Xiaomi Poco F4 vs Xiaomi Poco X3 Pro comparison

This file can be used for fix hang on logo and bricked device. Poco X3 …

Read More
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Search Local Homes for FREE Now!

Access 1000’s of homes in the local area and surrounding communities! Simply enter your search criteria below to get started now!
Step 1 of 17
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Get Your FREE Pre-Approval Letter

Do you know how much home you can afford? Take the first step by getting pre-approved here for FREE!
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 17
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Low Home Insurance Rates & Great Service

Get a FREE Quote in Just Seconds!
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Get Your FREE Refinance Analysis

Just answer the simple questions below to calculate a lower mortgage rate & payment. We make the process quick & easy.
Step 1 of 22
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 22

What's Your Home or Condo Worth?

Never trust home value estimates based solely on your home address! Get the REAL value of your home here in just 60 seconds or less!
Step 1 of 22
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 22
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 22