Learn about the possibilities
Breaking Up When You Share a Mortgage
Divorce or separation is never easy. There are many (financial) matters to take care of. One of those matters is your mortgage. I’d be happy to take care of all the financial arrangements for the house, the mortgage, and the insurance policies for you.
What should you keep in mind?
Your financial
options when you break up
Which one of you will continue to live in the house? Is it feasible to buy out the other person’s share? Or will you both move out? And what does this mean for your mortgage? I’d be happy to help you make the right decisions so you can look to the future with peace of mind.
Taking Over a Mortgage: You Want to Stay in the Home
If you want to continue living in the house and buy out your partner, you must take over his or her share of the home. This means you must pay half of the home’s equity to your ex-partner.
In addition, your income must be sufficient to transfer the entire mortgage into your name. It’s important to apply for a new mortgage, during which the bank will reassess your financial situation and ability to pay. Be sure to seek expert advice on your options!
Selling a Home After a Divorce or Breakup
Is the value of your current home higher than your mortgage balance? If so, you have equity. If you want to buy a new home, you should, in principle, use that equity first.
I’d be happy to explain how to do that wisely.
Read more about how to use your home equity.
Keep the home and mortgage undivided
Have you decided to continue living together in the house for the time being? If so, you’ll both remain responsible for the mortgage payments. Because the tax authorities may consider one of you a “non-owner-occupant,” this could have financial and tax implications.
It is therefore important to make clear agreements about how costs and obligations will be divided. I’d be happy to help you prevent misunderstandings and conflicts. I also work with experts in the field of mediation.
Tip: A mediator can help you reach an agreement
A mediator can help you reach sound agreements regarding the children, child support, the division of assets, and pensions. The home and the mortgage will also be discussed. I work with mediators to ensure that the agreements you reach are feasible and that you understand how they will affect your monthly expenses.
Richard Gregoire is one of the experts I work with in the field of mediation and guiding couples through a relationship breakup in a positive way. Despite our different areas of expertise, we’re both committed to our clients’ financial well-being. That’s an important area where our strengths complement each other.
Join over 600 homeowners who have chosen Roling Advies
Shariff was a tremendous help to us during a difficult time. He clearly explained all our options and put our minds at ease. We were able to take the next step with confidence.
Thanks to Shariff, I knew exactly what my options were after the divorce. His personal approach and quick responses made all the difference.
There are often more possibilities than you think!
The "Explain" Rule for Mortgages and Divorce
If you split up and have a joint mortgage, there are often more financial options available than you might think. For example, the “explain” program can offer a solution if, after a divorce, you want to put the mortgage in your own name but don’t fully meet the income requirements.
Under this program, the bank will consider your specific situation and, under certain conditions, may offer you greater financial flexibility. Under the “explain” program, different criteria may be used when assessing your ability to make mortgage payments.
Shariff Roling | Mortgage Advisor
Would you like to know what your financial options are if you break up?
Email: info@rolingadvies.nl Or call: +31 15 700 9756
Free and with no obligation!
Frequently Asked Questions About Mortgage Advice When Separating or Getting a Divorce
Yes, you are still entitled to a mortgage interest deduction after the divorce, but only for the portion of the mortgage that corresponds to your share of ownership in the home. If you continue to live in the home and transfer the entire mortgage into your name, you can deduct the interest, provided your income is sufficient. The departing partner loses the right to mortgage interest deduction for that home, unless he or she makes an arrangement such as temporary co-ownership.
Yes, if you want to make changes to your mortgage—such as transferring it to a single name or buying out your partner—it’s often necessary to hire a notary. The notary will update the title deed and the mortgage deed to ensure that everything is legally documented correctly. I’ll take the stress off your shoulders by guiding you through the entire process. For example, I’ll liaise with the mortgage lender regarding the details of your revised mortgage and ensure that the notary receives the correct information and instructions for amending the deeds.
If one of you moves out of the house, he or she is generally no longer entitled to a mortgage interest deduction for that portion of the mortgage. The remaining partner can continue to claim the interest deduction only if his or her income is sufficient to cover the full mortgage payments. The tax authorities may apply specific rules in this regard.
If you buy out your partner, you must pay him or her his or her share of the home’s equity. Equity is the difference between the home’s current value and the remaining mortgage balance. Suppose the equity is €50,000; in that case, you’ll have to pay your ex-partner €25,000 if you each own half of the home. You can finance this amount by taking out a new or increased mortgage.
If you buy out your partner and transfer the mortgage into your name, the interest-only mortgage can remain in place, provided your income is sufficient to cover the full costs. The bank will conduct a new assessment of your financial situation. You can choose to keep the interest-only mortgage or to pay off part of it. I’d be happy to help you make the best choice for your situation. Schedule a no-obligation appointment.
If you don’t meet the income requirements, you may be eligible for the “explain” program. This program offers more flexibility in assessing your mortgage application, taking into account alimony or other financial resources. I’d be happy to help you explore your options.
The deed of division is a notarized document that sets forth how jointly owned property, such as a home, is to be divided following a divorce. If you or your ex-partner continues to live in the home, the deed of division stipulates that the home will be registered entirely in the name of the partner who remains there. This document is essential for legally establishing ownership rights and for meeting the requirements of the bank and the land registry.
A mortgage with the National Mortgage Guarantee (NHG) offers extra security in the event of a divorce. If, after the divorce, you can no longer afford the mortgage payments and are forced to sell your home at a loss, the NHG can cover the remaining debt. This prevents financial problems and provides a safety net, reducing the impact of a divorce on your financial situation. You can also utilize the NHG management standards to make it possible to keep your home. Please contact us for more information.