Navigating Divorce When You Have a Joint Mortgage: What You Need to Know
Divorce is challenging on many levels—emotionally, legally, and financially. When a couple shares a mortgage, the complexity increases, often raising questions about what happens to the home loan after separation. Understanding your options and how to navigate this financial obligation can ease stress and help you move forward with confidence.
As a Certified Divorce Real Estate Expert® (CDRE®), I’ve guided many clients through this difficult process, providing clarity and support every step of the way. Here’s what you need to know about managing a shared mortgage during divorce, including refinancing, removing a spouse from the loan, and dispelling common misconceptions.
What Happens to the Mortgage After Divorce?
Owning a home together usually means both spouses are jointly responsible for the mortgage. Even after divorce, the mortgage lender holds both parties accountable for payments—regardless of who lives in the house or who is legally awarded the property in the divorce decree.
This shared responsibility means:
Both names remain on the loan unless one spouse refinances.
Missed payments can negatively impact both credit scores.
The property could be foreclosed if payments are not maintained.
Refinancing: The Key to Removing a Spouse from the Mortgage
Refinancing is the most common way to remove one spouse from a joint mortgage. Here’s how it works:
Qualify Individually: The spouse who wishes to keep the home applies for a new mortgage in their name alone. Lenders will evaluate their credit score, income, debts, and overall financial stability.
Pay Off Existing Loan: The new mortgage pays off the existing loan shared by both spouses, effectively releasing the other party from future liability.
Legal Confirmation: The divorce decree typically stipulates who is responsible for refinancing and by when, but timely action is crucial to avoid complications.
Refinancing can be complicated if the spouse wishing to keep the home cannot qualify alone, or if property values have declined. In such cases, alternatives like selling the home or co-owning until conditions improve may be considered.
Removing a Spouse from the Title vs. Removing Them from the Mortgage
When navigating a divorce involving real estate, it’s essential to understand that removing a name from the property title is not the same as removing it from the mortgage loan.
Title – Who Owns the Property
The title establishes ownership. In a divorce, the title can be transferred to one spouse or divided between both parties as tenants in common.
Mortgage – Who Is Financially Responsible
The mortgage is the loan attached to the property. Even if your name is removed from the title, you remain financially responsible for the mortgage unless the loan is refinanced or paid off. A quitclaim deed only transfers ownership—it does not release you from financial liability.
Common Misconceptions About Mortgage Responsibility in Divorce
“My divorce decree says I’m no longer responsible—so I’m in the clear.”
Unfortunately, this is not true. If your name is still on the mortgage, the lender considers you fully liable—regardless of what the divorce decree states.
“My ex agreed to make the payments, so I don’t have to worry.”
This can be risky. If payments are missed, both parties’ credit scores are impacted, and the property may face foreclosure.
“Refinancing should be easy.”
Refinancing is not guaranteed. Approval depends on income, credit score, equity, debt-to-income ratios, and current market conditions. It can take time and preparation to qualify.
“I can force my spouse to refinance.”
A court can order refinancing, but lenders have the final say. If your spouse cannot qualify alone, the mortgage will remain in both names.
Why Work With a Certified Divorce Real Estate Expert (CDRE®)
A Certified Divorce Real Estate Expert brings specialized training to help you protect your financial interests during a divorce involving real property.
The CDRE® Advantage
✅ Expertise in Divorce-Related Real Estate Transactions
✅ Understanding of Court Procedures and Judicial Expectations
✅ Neutral, Fact-Based Guidance During Emotional Decisions
✅ Collaboration with Your Legal and Financial Advisors
With the guidance of CDRE®, you gain strategic support designed to reduce conflict, protect your credit, and help both parties reach equitable outcomes.
You Don’t Have to Navigate This Alone
If you’re going through a divorce and own a home together, the decisions you make now will impact your financial future. Make them with confidence, clarity, and expert support.
Contact Shannon Lindstrom, Realtor®, CDRE® with RE/MAX Results
Let’s discuss your options and create a path forward that supports your goals—whether that means retaining the home, selling it, or transitioning ownership.
📞 Ready to take the next step?
Your new beginning starts with the right guidance. Reach out today to start the conversation and find peace of mind in the process.
Shannon Lindstrom, Realtor®, CDRE®, GREEN, MILRES, MRP, VCA
RE/MAX Results
7373 Kirkwood Court No, Ste. 300
Maple Grove, MN 55369
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
https://www.ilumniinstitute.com/cdre/shannon-lindstrom
