Dealing with a joint mortgage after a divorce is a complex process and can become even more taxing when individuals are dealing with the stress of separation.

Knowing what your options are can make the process much less stressful, which is why you should ALWAYS consult an experienced real estate lawyer for advice and direction.

At Separation Superheros, our Red Deer divorce lawyers can help ease the transition and guide you through the debt division process.

Learn More: Red Deer Real Estate Lawyer Services

What Happens to My Mortgage after Divorce?

Exactly what happens to your mortgage after divorce will largely depend on your plans for the property and your individual circumstances.

A real estate lawyer can help assess the situation and determine which option is best for you going forward.

There are usually 3 options for divorcing couples who have a joint mortgage:

Sell the house & pay off the mortgage

If both parties want to move out of the marital home then the easiest way forward is to sell the house and pay off the mortgage.

This is often the least messy way of moving on after a separation and provides a clean break.

In such circumstances, any equity left over after the mortgage has been paid off will be considered a marital asset and split between the two parties.

** Note: Hiring a divorce lawyer can help you reach a mutually satisfactory agreement regarding the leftover funds, quickening the entire process **

Contact one of our real estate lawyers today >

One party keeps the property

If you or your partner wants to live in the home then transfer of ownership must occur.

  • One partner will have to buy the other’s share in the property - including the share of any equity
  • The occupier must prove that they will be able to afford the mortgage on their own
  • The current value of the home will need to be assessed to determine the level of equity in the property. This will be considered as a marital asset and split between the two parties.

How Our Divorce Lawyers Can Help With Your Mortgage Options >

Continue paying your existing mortgage

In some circumstances a real estate lawyer may suggest that you continue to pay the existing mortgage - especially if you don’t have long left and the divorce is on good terms.

In such a case you would need to ensure that both parties can continue to afford to pay the mortgage along with any other living costs.

Why Enlist The Help of a Real Estate Lawyer

During the divorce process, it may be difficult to communicate effectively with your partner regarding issues such as the mortgage liability.

Enlisting the help of a knowledgeable and experienced divorce lawyer may be useful as they can serve as your representative and advocate for the outcome you want.

Learn More: Benefits of Working With A Divorce Lawyer

Learn More

To learn more about our real estate lawyer services and how we can help protect your interests during the divorce process, call our Red Deer office today at 587-880-3358 or fill out a contact form.

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