From mourning the end of a relationship to ironing out the living and parenting arrangements, divorce is difficult enough as it is. However, if you have a joint mortgage on a property together, it can add a whole new level of complexity.
Regardless of whether you both remain in the home, the mortgage still needs to be paid off and it’s not always as simple as splitting it . The good news is, by familiarising with the guidelines around home loans and divorce, you can make sure you’re prepared in the unfortunate event your marriage ends.
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What happens to the mortgage when you divorce?
You may be wondering “can you hold a shared home loan account after divorce?” After all, surely paying the loan repayments back equally would be the simplest option. Yes, it is indeed possible to take out a joint mortgage and both remain liable for the debt until it is paid off. However browse around these guys, there are various reasons that this may not always be feasible. Perhaps one partner has a lower income, will have increased rental or childcare costs or simply doesn’t feel they should have to pay for a home they no longer live in. In this case, there are a few other divorce and mortgage options:
- Buying out the property share owned by your ex-partner
- Selling your property share to your ex-partner
What are the costs involved in buying a home? – the upfront and hidden fees
Before buying a home, it’s vital to understand the costs involved, both upfront and ongoing. Continue reading Breaking up a mortgage after the break-up: eChoice’s guide to home loans and divorce