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Mortgage Payments and Divorce: Who is Responsible?

September 23, 2010DivorceWayne Ward

If your spouse has agreed to take sole responsibility for mortgage payments and this agreement is reflected in the final divorce decree, you more than likely believe that the matter has been fully resolved and that you are released from any further responsibility for mortgage payments.

Unfortunately, this is not the case.

Both you and your former spouse assumed responsibility for mortgage payments when you signed the loan documents. Consequently, a divorce decree stating that your former spouse will be responsible for mortgage payments has virtually no legal effect.

Fortunately, there are ways to legally transfer responsibility for mortgage payments to your former spouse.

Assumption of the Mortgage

A lender may agree to let your former spouse assume the entire mortgage. (Please note, not all lenders are open to this option due to the risk involved.)

If the lender does agree to let your former spouse assume the mortgage, two documents will have to be executed: a release of liability and an assumption agreement. Your former spouse will also have to provide the lender with certain financial documents that verify that he or she is able to make the mortgage payments on their own.

A copy of both a quitclaim deed and a finalized divorce decree may also be requested by the lender. (For the uninitiated: A quitclaim deed transfers a spouse’s interest in the property to the other spouse).

Refinancing

Refinancing can also eliminate your responsibility for mortgage payments. In most situations, your former spouse must agree to cover your equity share and, more importantly, refinance the mortgage in their name only. It may be beneficial to execute a quitclaim deed at this same time.

Please note, refinancing fees are generally more than those associated with mortgage assumption.

To learn more about divorce and responsibility for mortgage payments, contact an experienced and skilled legal professional.

This post is for informational purposes only and is not to be construed as legal advice.

Stay tuned for more from our Ft. Worth family law blog …

Related Resources:

Mortgage Options While Going Through a Divorce (LoanSafe.org)

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4/20/2020
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killzz plays
3/11/2020
Mr. Ward is an energetic attorney who has developed clear definitions of proper legal pathways for solving complex social problems. My case involved the kidnapping of our daughter and other legal issues. It is clear that Alzheimers, dementia, and greed bring new components to our American Democracy. Mr. Ward is an exceptional lawyer and is perfect in his judgement of people and their actions. He is level-headed and focussed and at the same time empathetic and compassionate. He is a dedicated profession and his clients well-being. He is patient and communicates effectively with his clients throughout the legal process.

Robert Donovan
3/04/2020
I have the best lawyer! She is extremely personable. Which goes along way when you are dealing w a negative situation.

linda smith
6/26/2019
Greeted right when you walk it, gives off a homey feeling.

Michelle Rodriguez
2/10/2019
Gayla answers all my needs even after the case was closed 2 years ago. She's willing to service me and my needs. Attorney Wayne Ward you're team is amazing!

Lyndy Malaluan
8/07/2018
I retained Mr. Ward after careful research and a personal recommendation. You can't always believe what you read on a posted review. However, in my case I can only add to those endorsements. Mr. Ward's knowledge of the legal system and Texas law have been honed over 40 years. His reputation and relationships in Tarrant County have been built on integrity and respect. Mr. Ward is very personable and caring. He fights for what is right and just for all of his clients.
His office runs like clockwork due to a professional and caring staff. My experience in what was a difficult divorce was made immensely more favorable because of Mr. Ward and his team.

Karen P.
6/29/2018
If needed, I would choose to have him on my side of the table every time. I retained Mr. Ward after careful research and a personal recommendation. You can't always believe what you read on a posted review. However, in my case I can only add to those endorsements. Mr. Ward's knowledge of the legal system and Texas law have been honed over 40 years. His reputation and relationships in Tarrant County have been built on integrity and respect. Mr. Ward is very personable and caring. He fights for what is right and just for all of his clients. His office runs like clockwork due to a professional and caring staff. My experience in what was a difficult divorce was made immensely more favorable because of Mr. Ward and his team.

Karen
6/29/2018
I retained Mr. Ward after careful research and a personal recommendation. You can't always believe what you read on a posted review. However, in my case I can only add to those endorsements. Mr. Ward's knowledge of the legal system and Texas law have been honed over 40 years. His reputation and relationships in Tarrant County have been built on integrity and respect. Mr. Ward is very personable and caring. He fights for what is right and just for all of his clients.
His office runs like clockwork due to a professional and caring staff. My experience in what was a difficult divorce was made immensely more favorable because of Mr. Ward and his team.

Karen P.
6/29/2018
Wayne and his staff are extremely hardworking and absolutely dedicated to their clients. They truly care about the people who walk into their office needing help. They are smart and diligent and some of the nicest people I know.

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3/31/2018
Wayne Ward = Results Mr. Ward and his office are highly recommended for their professionalism, timely response, knowledge of the law and how it applies to a family law case and for the successful results that come from prioritizing the needs of the client.

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