What Happens to a Mortgage After Divorce? Explore mortgage options after divorce

Going through a divorce is a challenging and emotional time, and dealing with a mortgage on top of everything can feel overwhelming. Many questions arise regarding the division of equity, whether to sell the house, and how to handle mortgage liabilities. In this blog post, we will explore the responsibilities for a mortgage after divorce, determine who will pay the mortgage, discuss options for assuming the mortgage, and address situations where the house value is lower than the mortgage. Explore mortgage options after divorce.

Responsibilities for the Mortgage After Divorce:

The responsibilities for a mortgage after divorce are often unfamiliar territory for most people. One common question is whether the house needs to be sold to divide the equity. Alternatively, one spouse can buy out the other. In this case, the buying spouse typically undergoes a mortgage assumption to pay the other spouse their share of the equity.

Determining Who Will Pay the Mortgage:

If the mortgage was held jointly, both spouses are legally responsible for making payments. To avoid complications, it is essential to determine who will assume the mortgage payment responsibility during the divorce agreement. While transferring the title to the other partner through a quit claim deed relinquishes ownership rights, it does not absolve the spouse from mortgage responsibility. To address this, liability transfer must be arranged through a mortgage assumption or loan modification after the divorce.

Assuming the Mortgage:

Assuming the mortgage is often the preferred option for the spouse who wishes to keep the house. However, the eligibility criteria set by the mortgage lender must be met. If qualified, the spouse assuming the mortgage may consider obtaining a home equity loan for refinancing. This allows the responsibility for paying the mortgage to shift to the spouse who intends to maintain ownership of the property.

When the Home Value is Lower Than the Mortgage:

In some cases, the sale of the home may not yield a profit, and the value of the home may be lower than the remaining mortgage balance. This can create a challenging situation if the buying spouse cannot qualify for a loan modification or find alternative ways to buy the house.

In such circumstances, reaching an agreement between the spouses to delay the buyout or sale of the house may be necessary. It is essential to openly communicate and explore options to find a solution that works for both parties.


Dealing with a mortgage after divorce requires careful consideration and decision-making. It is crucial to determine the responsibilities for the mortgage, decide who will pay it, and explore options such as assuming the mortgage or seeking a loan modification. In situations where the home value is lower than the mortgage, open communication and agreement between the divorcing spouses are necessary to find a suitable resolution.

If you find yourself in a situation where you need to sell your Indianapolis house after a divorce, consider reaching out to KK Buys Indy Homes. We offer cash offers on your timeline, providing a hassle-free solution. Call us at 317-349-5035 for a no-obligation consultation or to get answers to any questions you may have.

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