What Happens To A Joint Mortgage After A Separation When A Couple Are Not Married?

One of the most stressful occurrences in life is the breakdown of a significant relationship. The stress is exacerbated when the couple live together and have to address the legal issues their breakup raises in addition to dealing with the emotional strain. A question often asked of our expert family law solicitors is, ‘What happens to a joint mortgage after a separation when the couple are not married?’

Here, our family law team explain the position regarding what happens to a joint mortgage after a separation when the couple are not married. Whilst a couple can obtain a joint mortgage when only one is named on the property deeds, it would be unusual for them to do so. Therefore, for the purposes of this article, we will assume that the property is jointly owned.

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How Can A Joint Mortgage Be Dealt With After A Separation When A Couple Are Not Married?

Unmarried couples are dealt with in law as cohabitees and have no ongoing financial obligations towards one another when they separate. This can be highly problematic for a partner with no legal entitlement to the house shared during the relationship, and they may be forced to leave their home. As a general rule, however, when a property is jointly owned, both partners are entitled to continue living there despite their breakup. Whilst this may seem less than appealing, it does provide reassurance that you will not find yourself without somewhere to live if your relationship ends.

A key point to note is that, where a mortgage is in joint names, both parties are responsible for the mortgage repayments until it has been paid off in full, regardless of whether or not they live in the property. So, if you decide to leave, you may need to continue paying your share. If you don’t, your credit rating, and that of your partner, might be negatively impacted, and the property may be repossessed.

You have several options when deciding how to deal with your joint mortgage after separation when you are not married, which include the following:

• Sell The Property And Split The Proceeds

This is often the most sensible option and is the preferred route for many separating couples, since it facilitates a clean break. When the property is sold, the mortgage will be paid off, thereby releasing the couple from any ongoing repayment obligations, and the remaining sale proceeds will be divided between them. If you are in negative equity, you would need to share the remaining debt between you.

Of course, it is not always possible to sell the property. If you have children, you must put their welfare first, and selling their home may be unpalatable. Even if you do not have children, you or your partner might not want to sell the property, because you are particularly attached to it, or see it as a long-term investment opportunity, perhaps. In these cases, alternative solutions must be considered.

• Buy Out Your Partner, Or Allow Them To Buy You Out

One partner buying the other out is another way of achieving a clean break. However, the viability of this option depends entirely on one partner having the funds to do so. If you want to buy your partner’s share of the property but do not have the means, you will need to apply for a mortgage in your own right and satisfy the lender’s affordability and eligibility checks. If you cannot, you could explore the possibility of obtaining a guarantor mortgage, whereby a third party – a parent, other relative or friend usually – agrees to meet your mortgage repayments should you be unable to do so.

• One Partner Takes Over The Joint Mortgage

A lender does not care who makes the repayments, as long as they are made. So, a couple may decide that one of them will take over the entirety of the mortgage repayments, and the other will move out. This option offers a convenient way of circumventing the problem of one party having to obtain a mortgage in their own right and allows them to continue living in the property.

However, you both need to give careful consideration to the potential ramifications of this course of action. The partner covering the mortgage will presumably want to ensure their contributions are reflected in the property ownership, and the partner moving out must understand that they remain liable for the mortgage repayments.

How We Can Help Resolve The Issue Of What Happens To A Joint Mortgage After A Separation When A Couple Are Not Married

Our expert family law solicitors advise countless clients about what happens to their joint mortgage following their separation when they are not married. Sometimes, a client’s relationship is going strong and they simply require clarification of their position and reassurance that their interests, and those of their children, will be protected if their relationship breaks down in the future. In such cases, a couple can take pre-emptive measures to avoid later disputes by openly discussing the issue and ensuring the property ownership and mortgage arrangements reflect their intentions. More often than not, however, our family law team become involved when a relationship has ended, and our client needs advice on how to deal with their jointly owned property and joint mortgage. The correct course of action depends entirely on the couple’s circumstances, so our family law solicitors take the time to get to know you and understand your situation and goals. Once they have done so, they will clearly and comprehensively explain your options and assist you in putting in place the one that best meets your requirements.

Please call us now on 01603 672222 for a no-obligation conversation today or Click Here To Make An Online Enquiry.