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When an unmarried couple with a joint mortgage separate, both individuals remain equally responsible for mortgage payments, regardless of who lives in the home.
To resolve this, they can agree for one person to buy out the other, a lender may accept payments from only one person, or they may need to sell the property.
In this blog we will cover the law in more detail, so you know what the options are for your joint mortgage separation.
You’re both still responsible for the mortgage
A joint mortgage means both names are on the mortgage, and you’re both equally responsible for making payments. Even if one person moves out, the lender still expects both of you to pay the mortgage on time. If payments are missed, it will affect both of your credit scores.
Selling the property
One common solution is to sell the home and use the proceeds to pay off the mortgage. If there’s any profit left after repaying the loan and covering selling costs, you’ll typically split it based on your ownership agreement or in line with what is stated in a declaration of trust (if you have one). However, if the home has lost value, you may need to cover any remaining mortgage debt together.
One person buys out the other
If one partner wants to keep the home, they may be able to buy out the other’s share. This often means refinancing the mortgage in their name alone, which requires qualifying for the loan based on their individual income and credit score. The buying partner may also need to pay the other for their share of any equity in the home. If you don’t agree on the value of the property, a valuation from an independent surveyor may be needed.
Continuing to co-own the property
In some cases, former partners agree to keep the home and continue paying the mortgage together, at least for a period of time. This might be a short-term solution while waiting for a better time to sell or until one person can refinance. However, co-owning long-term can be complicated, and it’s important to have a clear written agreement about responsibilities.
Legal agreements can help
To avoid confusion and conflict, it’s wise to have a declaration of trust in place before purchasing a home together, setting out how the property is owned and what happens if you separate. If you’re already separating, a solicitor can help draft an agreement that outlines who will live in the home, who will make payments, and how you’ll handle future decisions about selling or refinancing.
What if one partner stops paying?
If one person stops making payments, the other will need to cover the full amount to avoid impacting their credit score. If this happens, legal action may be necessary to recover costs or force a sale of the property. You may need to apply to court for an Order for Sale under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) to resolve disputes over property ownership.
Speak to our family law solicitors today
Separating is difficult, and dealing with a joint mortgage can add extra stress. The best approach is open communication, a clear plan, and professional advice if needed. Whether you sell, refinance, or co-own temporarily, understanding your rights can help you make the best decision for your future.
Speak to our specialist family law solicitors in Bath, Bristol and Bradford on Avon for advice on joint marriages in separation, or contact us at info@sharpfamilylaw.com.
