Going through a divorce is naturally a difficult time, and many individuals will be understandably worried about the impact on their finances.
Property and mortgage arrangements are among the most complicated areas to deal with when working towards a financial settlement. Rest assured, our experts at Crisp and Co are highly experienced in this legal area. We can provide support in various ways, including divorce and mortgage legal advice, assistance with divorce financial settlements, and help with mortgage disputes.
Below, we will discuss how divorce affects mortgages, including how joint mortgages work in the aftermath of divorce, and various related issues. If you would like to speak to one of our experts today, please get in touch using the contact details below.
Get in touch with our specialist family law solicitors at Crisp & Co today
If you would like to gain support with divorce and mortgages, please contact our expert family lawyers at Crisp & Co.
You can give us a call on 0330 013 0381 or request a free call back by filling out the enquiry form on the right hand side of our home page.
Our expertise with divorce and mortgages
What happens to the house in a divorce?
When you divorce your spouse or civil partner, what happens to the house will depend on the circumstances and what you and your ex-partner are able to negotiate and agree to.
In theory, during a divorce, both parties have an equal right to the family property, no matter if the property is jointly owned or where the property is owned by one of the partners.
There are a few options for the family home in the aftermath of a divorce. For example:
- If both spouses co-own the property, one spouse might buy the other out, and continue to live there while the other spouse moves out
- If one spouse owns the property, they will likely have to negotiate with the other spouse so that the non-owner also receives a share as part of the divorce settlement
- The spouses might agree to sell the property and divide the proceeds between them
Above are just a few examples of possible outcomes, the options vary significantly between each divorcing couple and their circumstances.
Can you keep a joint mortgage after divorce or separation?
It is possible to keep a joint mortgage after divorce or separation if both spouses agree to do so. Essentially, even if both parties are now living at different properties, having both names on the mortgage deed of the previous family home is an option.
This is a common occurrence, for example, when it has been decided that one parent will remain in the property, living with the children.
To discuss mortgage after divorce in the UK today, please get in touch.
Can I get a mortgage if I already have one with my ex?
Yes, it is possible to apply for a mortgage even if you already have one with your ex-spouse or partner. Regardless, it’s important to note that when mortgage lenders consider your application, they will assess your overall financial obligations.
Depending on your financial situation and the circumstances surrounding your existing mortgage, having an existing mortgage may impact whether or not you are likely to be approved for another mortgage.
If you are applying for a new mortgage, the lender will assess your current mortgage liability and how your existing property is being managed.
Can I walk away from a joint mortgage?
While many may consider this when getting divorced, walking away from a joint mortgage is not a viable option. If your name is on the mortgage deeds for a property, you are legally responsible for continuing to contribute to the mortgage until the payments are complete.
If you would like to have your name removed from a mortgage deed, you will need to gain your lender’s approval, for instance, by a transfer of equity. In this situation the party who remains on the mortgage deed must provide evidence that they can pay the mortgage by themselves.
How do I remove my name from a mortgage after separation?
Removing your name from a mortgage after separation usually requires the following steps:
- Negotiating with your ex-partner or spouse and your mortgage lender
- Working with a solicitor who can provide legal advice and draft the required documentation
- Arranging a transfer of equity, where your mortgage share is transferred to your ex-partner or spouse
A transfer of equity is only an option whereby your ex-partner or spouse can provide evidence that they can pay off the mortgage without you. If you would like more information about this, please contact our expert solicitors at Crisp & Co.
Am I considered to be a first-time home buyer after divorce?
If you previously owned a property with your ex-partner, and after the divorce, you no longer own the property, some lenders might consider you a ‘first-time buyer’ moving forward.
To be considered a first-time buyer after divorce, you must no longer have a legal interest in the property you previously owned, and you must have never owned another property, whether abroad or in the UK.
What are my options if my ex stops paying the mortgage?
If your ex-spouse or partner stops paying the mortgage, you are advised to get in touch with your mortgage lender. They may be able to help you create a temporary payment plan to prevent falling into arrears.
Where both you and your ex are on the mortgage deeds, you are jointly liable to continue paying the mortgage, regardless of whether or not they have moved out of the home.
If you are in this situation, you are advised to seek the support of a specialist solicitor. Your solicitor will be able to provide tailor-fit legal advice and help you to negotiate with your partner or take legal action against them.
How can I buy out my ex's share of the property?
If you would like to buy out your ex’s share of a property, you’ll need to contact your mortgage lender and will need the support of a solicitor to complete the associated legal paperwork on your behalf.
Joint mortgages during divorce can be complex, and it is recommended that you seek legal advice before making any key decisions.
Your solicitor will support you through the transfer of equity process and provide the evidence to prove that you qualify.
What happens if we cannot agree on what to do with the property?
What happens to the property after a divorce is determined through divorce financial settlement proceedings.
These proceedings usually involve both parties receiving independent legal support and negotiating out of Court, for instance, through mediation or collaborative law.
If the divorcing couple cannot agree on what should happen to the property, they will need to go through Court processes so that a judge can make a decision for them based on what is fair in the circumstances.
How does divorce affect mortgage affordability?
A divorce can impact mortgage affordability because getting divorced can have a significant impact on your financial situation.
Applying for a mortgage after divorce means that your income alone will be assessed for the affordability criteria, whereas previously, this assessment would have also included your partner’s income. Depending on how much you earn, your outgoings, and your overall credit score, this could make it more difficult to meet the affordability criteria for certain lenders.
Individuals are advised to seek financial advice before applying for a mortgage in the aftermath of a divorce.
Do I need a solicitor for property & mortgage issues in divorce?
It is advised to work with a solicitor when navigating property and mortgage issues in divorce. Working with a solicitor can help you to understand your options and rights, and protect your finances.
How we can help with mortgage and divorce
Legal advice on divorce and mortgages
If you are going through a divorce and are concerned about what might happen to your mortgage, we can provide bespoke support based on your circumstances.
Rest assured we have much experience providing divorce and mortgage advice and can offer a transparent breakdown of your options moving forward.
Divorce and financial settlements
Mortgage options can be discussed as part of your divorce settlement. During the settlement process, it will be necessary to negotiate and decide how the mortgage and property should be divided and what the best options are in the circumstances.
At Crisp and Co, we can support clients in reaching a divorce financial settlement with their ex-partner, using mediation or negotiation, or through the court if necessary.
Mortgage disputes
If you are facing a mortgage dispute in the aftermath of a divorce, for example, where your ex-partner is refusing to pay the mortgage when they are still liable to do so, we can assist you.
We may be able to help you to negotiate and settle the dispute with your ex-partner out of Court, or if necessary, help you apply for a Court order to enforce payment.
Separating with a mortgage is rarely easy. However, we have much experience in supporting couples to negotiate and solve disputes as quickly and amicably as possible. To discuss mortgage and divorce disputes today, please contact our specialists at Crisp & Co.
Why choose Crisp & Co?
Crisp & Co is a highly experienced and specialist family law firm that has worked with a wide range of clients across all manner of family law matters.
When offering legal support, we focus on providing accessible service, making certain that your experience is as simple and stress-free as possible. Our team will ensure that you have a clear appreciation of any legal processes that you will be a part of, along with your rights and options.
Our solicitors will handle your case with sensitivity, focusing on the finer details, and making sure you receive a personalised service.
Get in touch with our specialist family law solicitors Crisp & Co today
If you would like to gain support with divorce and mortgages, please get in touch with our expert family lawyers at Crisp & Co.
You can give us a call on 0330 013 0381 or request a free call back by filling out the enquiry form on the right hand side of our home page.