If you are going through a divorce or ending a civil partnership, one of the biggest financial decisions you may face is what happens to your home. When a property is secured by a joint mortgage, both parties remain legally responsible for the repayments, regardless of who continues living there.

There are several options available. Some couples decide to sell the property and divide any remaining equity, allowing both parties to move on financially and potentially purchase separate homes. Others arrange for one partner to buy the other out, transferring ownership and, where possible, the mortgage into one name. In some situations, couples agree to keep the home in joint names temporarily, for example, until children reach 18.

Many separating couples aim to remove one name from the mortgage. The person whose name is removed may be able to borrow more to purchase their own property, while the partner remaining in the home gains full control and responsibility for the mortgage. It can also help break the financial link between former partners. Where joint debts remain in place, credit files are connected, meaning missed payments or financial difficulties could affect both individuals’ future credit applications.

However, transferring a mortgage into one name is not automatic. The lender must be satisfied that the remaining borrower can afford the repayments on their own. Affordability assessments will consider income, outgoings and overall financial stability.

If affordability is a challenge, some may explore a guarantor mortgage, where a close relative, or in some cases an ex-partner, agrees to cover payments if necessary. Independent legal advice is essential before entering into any guarantor arrangement.

Every separation is different, and the right solution will depend on your financial circumstances and long-term plans. Plan your next steps with confidence, get in touch today to explore your options.

If you’d like to discuss the options available to you, contact your adviser.