What Do We Do with Our Mortgage After Divorce?

 Posted on July 21, 2025 in Divorce

For many couples in Maryland, the family home is their most valuable asset and there are many years, if not decades, of memories with family and friends attached to it. But homes are expensive and seem to get more expensive every year. Figuring out what to do with the mortgage in a divorce can be just as important as deciding who will keep the house, especially if either party is not sure they can afford the mortgage on their own.

Maryland law requires courts to divide marital property equitably, which does not always mean splitting everything in half. If you do decide to take over your house’s mortgage entirely after your divorce, you need to protect your financial stability and credit. With the help of our Anne Arundel County, MD divorce attorneys and our experience in asset division, you can make informed decisions about what to do with your mortgage as part of your divorce settlement.

Who Gets the House in a Divorce?

Maryland courts classify most property acquired during the marriage as marital property, even if only one spouse’s name is on the deed or mortgage. Most couples make an agreement about their house without help from the court. If the court does have to get involved, it will consider factors such as the length of the marriage, each spouse’s contributions, and the needs of any children when determining who will keep the home.

If one spouse wants to keep the house, that spouse will usually need to refinance the mortgage in their name alone. This step serves two purposes: it removes the other spouse from financial responsibility and allows the spouse keeping the house to pay out the other’s share of equity. However, refinancing depends on the spouse’s ability to qualify for a loan based on their income and credit.

When Selling the Home in a Divorce Makes Sense

In many cases, selling the house is the cleanest option. Selling allows both spouses to pay off the mortgage and divide the proceeds. While it can be an emotional decision, it avoids the risks of leaving both spouses tied to a mortgage after divorce.

For families with children, some couples agree to delay selling the home until the children graduate or reach a certain age. This arrangement requires a clear agreement about who will pay the mortgage, taxes, and maintenance costs during that time.

Protecting Your Financial Future

Leaving both names on the mortgage after divorce can have major risks. If the spouse responsible for payments falls behind, it will damage both parties’ credit and could lead to foreclosure. To avoid these problems, divorce agreements should clearly spell out who is responsible for the mortgage and include a timeline for refinancing or selling the property.

Usually, the wisest move is for the spouse who wants to keep the house to refinance the mortgage into their name alone and totally assume financial responsibility for the property. Whatever you choose to do with your house, our attorneys can help you protect yourself from unnecessary financial exposure. 

Contact an Anne Arundel County, MD Divorce Lawyer

If you are facing divorce and need guidance on dividing your home and mortgage, contact an Annapolis, MD divorce lawyer at Zide Law Group, LLC. Our team has decades of experience, offers personalized attention, and works collaboratively to find practical solutions for complex property division issues. Call 410-760-9433 to schedule a consultation.