June 9, 2025
Divorce or separation is never easy—and when a home is involved, things can get even more complicated. Whether you’re keeping the house, selling it, or buying your ex out, your mortgage options will shift based on income, equity, and legal agreements. Understanding your options early can save you money and stress later on.
If one party wants to stay in the home, they may be able to refinance the mortgage to remove the other person's name. This often involves a spousal buyout, where the remaining partner qualifies for the full loan amount on their own. Lenders will typically require a separation agreement that outlines property division and support obligations before approving any financing changes.
In some cases, the home is sold and both parties move on. If you're buying a new home after separating, your eligibility will depend on your income, debt obligations (including spousal or child support), and credit score. It's important to speak with a mortgage broker early—even before the separation is finalized—to understand what you can afford moving forward.
No matter your situation, planning ahead is key. A mortgage broker can help you navigate spousal buyouts, refinancing, and new purchases while ensuring your financing aligns with your legal and financial obligations. If you're facing a separation and need clarity on your mortgage options, don't wait to reach out.
Source: Absolute Mortgage Team