How to manage a mortgage in case of divorce

Who pays the mortgage?

In case of divorce, the ex's must continue to pay the mortgage payments, but the financial entity will be able to claim the payment from both holders. Consequently, those who appear on the loan and own the property will continue to maintain their obligations, whether they are married or divorced. Likewise, those who appear as debtors of the loan will be responsible for paying it, regardless of their marital status.

Mortgage with two holders:

In this case, both spouses can agree on the division of assets and decide who gets the mortgage. If one of the two is in charge of the loan, we recommend that you apply to the financial entity, in other words, a mortgage change or novation to remove one of the two holders from the contract.

The aforementioned procedure allows the definition of the new conditions of the contract. Even so, the entity could request a guarantee to ensure the loan's repayment capacity.

Mortgage with one holder, divorce and children:

If the property is in the name of one of the spouses, the use made of the property will come into play as well as the marital regime signed. In the case of separation of property, the property will belong to the one who bought it and, consequently, to the one who has been paying for it. However, if the chosen regime is community of property, the situation may change.

This is where the children come into the equation, as their custody directly affects the use of the property and its mortgage. Normally, the minor children stay in the family home with the parent who has been granted custody. The mortgage payment, in these cases, will be paid by the owner, regardless of whether or not he or she resides in the property, or has custody or not, or whether or not he or she resides or not.

Other alternatives:

Every situation is different, and therefore, ex's have several options with regard to the mortgage loan. If your case does not coincide with those mentioned above, we inform you of other alternatives:

• Reaching a mutual agreement or going to court to decide who gets the property and, in conclusion, who pays the monthly instalments.
• Sale of the property and subsequent cancellation of the mortgage or the acquisition of the entire property by one of the parties.
• Selling your share of the mortgage to your ex-partner.