Only if there’s a clear, enforceable plan to get you off of it—fast.
This is one of the most misunderstood and high-risk areas I see in divorce mortgage strategy. And unfortunately, it’s often overlooked until it’s too late.
Let me show you what I mean.
A Real Case with Real Consequences
I was recently brought into a case after the divorce had been finalized.
Here’s what happened:
- He was awarded the home and the mortgage.
- She moved out.
- As part of the settlement, he agreed to remove her from the mortgage—either through loan assumption or refinance.
But he never followed through.
Instead, over the next 18 months, he made 15 late mortgage payments—five of them more than 60 days past due.
Now?
His credit is too damaged to qualify for either an assumption or a refinance.
And because her name was never formally removed from the mortgage, she’s still responsible in the eyes of the lender—even though he is now legally responsible based on the divorce decree.
Divorce Doesn’t Remove Responsibility—Only a Lender Can Do That
Here’s the critical truth:
When two people sign a mortgage together, they are both legally obligated to repay according to the terms of the note.
That obligation does not go away just because a divorce court assigns the debt to one party.
The only way to release someone from that obligation is through:
- Refinance,
- Assumption, or
- Formal release of liability from the lender (which is rare).
In this case, none of that happened.
The Fallout: Financial, Legal, and Emotional
With the mortgage in default and the market cooling, they’ve decided to sell the home.
But the property has been sitting on the market for months.
He’s stuck, unable to move on or qualify for a new home.
She’s stuck too—still tied to a mortgage she doesn’t control and credit damage she didn’t cause.
This wasn’t how either of them envisioned things going.
The Truth No One’s Saying Loud Enough:
- Being awarded the mortgage doesn’t remove the other party.
- Late payments affect everyone on the loan—even after divorce.
- If your credit takes a hit post-decree, you might not be able to follow through on what you legally agreed to do.
This is why early, strategic planning is so important.
Not guesswork. Not hope. Not reaction.
Don’t Let This Be Your Story
If you or your spouse is keeping the home in a divorce, don’t assume the mortgage will “get figured out later.”
It needs to be part of the plan—with lending strategy integrated from the beginning.
📅 Book a consult to see if I can help.
Divorce changes a lot of things—don’t let homeownership be one of them.