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Knowing what happens with your mortgage when you’re divorcing

On Behalf of | Nov 16, 2023 | Divorce |

Florida couples take their wedding vows seriously, thinking their marriages will last. Sadly, that’s not always reality; many things can lead to a breakdown of the relationship and divorce. If you are in this situation, you might wonder what happens to the mortgage on your family home.


The first option you and your spouse have with your mortgage when you are getting a divorce is to refinance. You can do this if you’re able to agree on one party taking sole ownership of the home and both your names are on the mortgage. When going this route, that person must also update the title on the home to show that they are the sole owner.

Sell the home

Another option that’s available to you with your mortgage when going through a divorce is to sell your home. In this situation, you and your spouse can end up sharing the profits. However, there are additional potential costs to consider; you are responsible for any fees for your real estate agent, various taxes and home improvements if they’re necessary. In spite of getting money back from selling your home, it’s often necessary to shell out extra cash before you are able to sell.

Retain the mortgage

If you and your spouse are unable to agree about refinancing and you can’t sell the home, you might have to retain your existing mortgage. This also gives you the option of either remaining in the home to save money until you can sell or renting it out. If you choose the latter, you and your estranged spouse can split the money earned from the renter or renters.

One spouse receives equity

You can also pay your spouse their share of the equity in your home. The amount they receive depends on the value of the home and how much you owe jointly toward the mortgage. This is a common way for divorcing couples to deal with their mortgage. However, it’s often necessary to get a professional appraisal to determine your home’s equity.