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What happens to a mortgage after a divorce?

On Behalf of | Nov 21, 2023 | Divorce |

In a divorce, you may be entitled to keep your Maryland home. However, even if you aren’t allowed to stay in the house, you may still be responsible for making mortgage payments if your name is on the loan. This may be the case even if your spouse is ordered to make payments as part of a divorce decree.

Your lender wants to get paid

When you sign mortgage documents, you are signing a contract with your lender agreeing to make payments over a period of several years or decades. If there is a balance remaining on the loan, the lender is entitled to receive payment regardless of a change in your marital status. Ultimately, if your name is on the loan, you will be required to either continue to make payments or find a way to get yourself off of the loan.

Ending your obligation to pay

Assuming that you’re not ordered to make mortgage payments by a judge, there are two common methods of getting off of a mortgage loan after your divorce. First, you can refinance the loan in your former spouse’s name only. Second, you can sell the house and use the proceeds to pay your mortgage in full. Any funds that are left over after the mortgage is paid will typically be split between yourself and your former partner unless other arrangements have been made.

Failing to stay current on a home loan may have serious consequences for your credit score and ability to buy a house in the future. Ideally, you’ll keep an eye on your credit report after a divorce to ensure that payments are reported properly or that any change to the status of the loan are accurately reflected.


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