It’s always devastating when a marriage ends. Not just that, but most people have to sell their house after divorce. What happens to your joint mortgage if this happens?
Break-ups are always emotional and messy. Everything only gets worse when you’ve shared assets together. Most people don’t know what happens to their joint mortgage after separation. If you are interested in learning more about what are your options when it comes to your joint mortgage after this traumatic life experience, you’re on the right place.
Can One Person Pay Joint Mortgage?
When you’ve taken a joint mortgage, whether it is with your spouse, partner, a friend, or someone that you are co-habiting with, both of you are ‘jointly and severally’ liable for mortgage payments. In other words, both you and your former partner are responsible for paying the debt, and none of you can walk away from it. After separation, both parties need to make an agreement on the dynamics of joint mortgage payments. Otherwise, there are several consequences. At the very least, both of your credit reports will be damaged if one of you is late for payments. Also, lender can pursue both parties if they deem it necessary.
How Can You Pay Your Joint Mortgage?
You should remember that, no matter how bad your divorce or break-up is, joint mortgage is something you have to deal with together. It’s important to have a good communication with your former partner, as this is the only way both of you can end up satisfied and without any damage to your credit report.
The best option both of you have is to sell your house to a local direct buyer, pay off the joint mortgage and split the cash. Other option is for one of you to stay on the property and ‘buy out’ the other one. This is typically done when you don’t want to move your kids and to cause them more stress. This can help you be the only one liable for the mortgage payments. However, this is a rather expensive option, especially as now you will be the only one responsible for paying the mortgage that was based on double income.
Notify Your Lender about Your Split
It’s always advisable to let your lender know if only one party is left on the property. This is especially important if you are planning on buying out your former spouse, as the lender can give you financial and legal advice. Lenders want you to be able to make your monthly payments. They will gladly do everything they can to help you.
What Happens to Properties Jointly Owned by Married Couples?
If you are going through a divorce, both partners are entitled to share assets. In other words, you are entitled to a part of your partner’s belongings or finance. Even if you are not the legal owner of the home, you have a legal right over it. Any divorce settlement will be underpinned by it.
What Happens to Properties Jointly Owned by Civil Partnership Couples?
If you and your partner are living in a civil partnership, you don’t automatically own the rights to half of your partner’s assets. In other words, if your partner is the legal owner of the property, you won’t have any rights to it. However, it is possible to formally register your home rights, which will prevent your partner from selling the property after the separation – unless you allow it.
What Happens to Properties Jointly Owned by Partners in a Relationship?
If you are in a relationship with someone and you are living together, it is advisable to sign a cohabitation agreement in advance. If you end up separating, this agreement can help you request a joint mortgage. Otherwise, you won’t have any rights to the property once you separate – or you’ll be left with a high mortgage you can’t pay for yourself.
Should You Sell Your Property after Separation?
In the end, most people find selling their home after divorce to be the most pain-free option. Deciding on who gets to keep the property is hard, and if you go to the court you can end up dragging the divorce process for months or even years. When you sell your house fast to a direct buyer in Milwaukee, you will be able to go on with your life as fast as possible. This way, you and your former partner don’t have to worry who will get the house after divorce. You can share the profit half-half, or in some other way you have agreed on.
When you sell to Sparks Property Investors LLC, you will be able to close the sale much faster than if you try to sell your property the traditional way. Not just that, but we’ll pay you in cash, so you can reach to a faster agreement. When you need to make a quick sale of your property, contact Sparks Property Investors LLC!