Breaking up is never easy and sorting things out is often difficult. The administrative and practical headaches involved in a home you shared is frequently a major concern. It’s up to you and your ex to decide what to do with it. Should you sell it or will one of you stay there and buy the other out? And what about your home loan?
Breaking up and your mortgage
Numerous options are open to you, each affecting you and your ex differently.
Sell your home
If you decide to sell the home you had together, remember that both you and your ex remain liable for the home loan payments until it is sold.
Sometimes the proceeds from selling it may not be enough to pay off the rest of your home loan. Talk to one of our experts about what you can do in that case.
Keep your home and one of you buys the other out
You may decide not to sell your home and buy out your ex. Once you’ve set a sale price (by notarial deed or private agreement), ask one of our specialists about how you can take potentially required financing from there. Once they’ve given up their right to the property, your ex will no longer be liable for paying off any remaining home loan.
If you’re married, your divorce must be finalised and officially recorded to be able to buy out your ex. If you buy out your ex, you’ll usually have to pay them a sum of money. You pay this once the transfer of ownership by notarial deed has been completed. Only then are you owner of the property.
Keep your home
If you both decide to keep the property, nothing changes for us. You both remain liable for paying off your home loan.
Tips for dealing smoothly with your home loan
- Make an appointment with one of our specialists in good time to discuss how you and your ex can proceed
- Get advice from others like a notary public
- Bear in mind that your insurance will likely have to be reviewed
- Find out what you should do regarding your savings after the split
Buying a new home while still breaking up
If you’re living together (officially or otherwise) or married with separation of property, you can both take out a new mortgage without further ado.
If you’re married under a different system, you’ll usually still each be able to take out a separate mortgage if you’ve already made a first appearance in court or can prove that you’ve been separated for more than six months.