Going through a divorce when you own a property and have a mortgage together can be a tough process. But, one of the largest discussion points is the fate of the property. Having invested time, money and built up memories, not to mention the fact that there might be children settled in a local school situated close to the family home, it is no surprise that there is a high level of worry and distress attached to divorce and separation.
When your financial circumstances change, it is vital that you speak to your mortgage lender as soon as possible. They will be able to advise you on your options and make recommendations regarding mortgage solutions. Mortgage lenders are becoming more understanding and compassionate when it comes to divorces and, in many cases, may provide a temporary holiday period while you resolve the situation. It may also help your position if you have drawn up a full budget to prove that you can afford the extended mortgage repayments.
One very important thing to remember is to continue with the mortgage repayments after you divorce from your partner. A joint mortgage means that you are both liable for the debt, and this is until the mortgage has been completely paid off, regardless of whether you still live in the same property or not.
This means that it is crucial to keep making your repayments while you decide what to do because falling into arrears can damage the credit files of you and your ex, which will still have influence over the other person’s credit file.
Most of those who divorce don’t go to a court hearing to settle their financial disputes. However, it is always a good idea to understand what the courts would decide in respect of the family home.
If you have children, the court will consider the fact that they need somewhere safe and secure to live with each parent in their new properties. The outcome will also be dependent on personal circumstances.
As parents, it is always important to keep the needs of your children as the biggest priority during a divorce as it is their future that is going to be affected as a result of the separation. This includes trying to disrupt them as little as possible. This is especially important if they are studying for their GCSEs or A-levels.
After a separation takes place, the divorcees may have to transfer their share of the property back, so only one of them owns the property legally. This is called a transfer of equity and might also be seen as a gift by law. There are, however, other factors, such as if a court order has been awarded, this will not be legally regarded as a gift. Additionally, if a full price has been paid for the property share, this will not be seen as a transfer of equity gift either and the leaving party will be entitled to a financial payment towards their legal share of the property to ‘buy them out’.
At Zing, we are here to help you find the right mortgage for you despite your personal circumstances. Our experienced team of advisors and mortgage brokers can assist you in finding a mortgage after divorce to help ease the process. As an independent mortgage broker, we are more than happy to provide you with free and impartial advice. So why not visit our contact page today or call us on 0332 414 113.