If you want to remove a name from a mortgage, it’s important to know that divorcing someone or taking them off the title doesn’t automatically mean that they aren’t liable anymore. (The same goes for cosigners and co-borrowers.) Learn the difference between getting someone’s name off of a mortgage and removing their ownership rights, and how to do both without refinancing.
Going through a divorce can be an emotionally difficult time. On top of that there are many financial and legal matters to handle including what to do about the mortgage on your shared home. If you plan to keep the house as part of your divorce settlement, you’ll need to take steps to remove your ex-spouse’s name from the mortgage loan. Here’s what you need to know about getting a name off the mortgage after divorce.
Why It’s Important to Remove Your Ex from the Mortgage
Even if you get the house in the divorce, leaving your ex-spouse on the mortgage is generally not advisable. Here are some key reasons why:
-
You remain financially tied to your ex. As long as their name remains on the mortgage, you are both still legally responsible for repaying the debt. This means your ex’s credit still impacts your ability to get credit or take out a future mortgage in your own name.
-
Your ex could damage your credit If your ex stops making payments or files for bankruptcy, it could severely damage your credit score and make it harder for you to qualify for future loans
-
It can complicate refinancing or selling. Taking out a new mortgage or selling the home requires consent from both people on the existing mortgage. Removing your ex eliminates this hassle.
-
It forces continued contact with your ex. Being on the same mortgage means you have to stay in contact regarding payments and other mortgage-related issues. This ongoing connection can make it harder to achieve a clean break after divorce.
How to Remove an Ex-Spouse from the Mortgage
There are two main ways to remove your ex-spouse from the mortgage loan:
1. Refinance the Mortgage in Your Own Name
The most straightforward way to remove your ex’s name is to refinance the mortgage into your own name only. This involves applying for a new mortgage loan in your name that pays off and replaces the existing loan.
The major steps involved in refinancing to remove an ex-spouse include:
-
Review your finances to ensure you can qualify for a refinance on your own based on your income, credit score, and existing debts and assets.
-
Shop around with multiple lenders to find the best interest rate and loan terms. Online lenders often offer very competitive refinance rates.
-
Complete the loan application and provide all required documentation to the new lender, such as proof of income, bank statements, and your divorce decree.
-
Obtain an appraisal to confirm the home’s current market value.
-
Close on the new loan, which pays off the old mortgage.
-
Record the new deed removing your ex-spouse’s name and vesting ownership solely in your name.
Refinancing can allow you to take advantage of lower interest rates, reduce your monthly payments, or switch to a more stable loan product. Just be aware that refinancing comes with upfront closing costs, usually 2% to 5% of the total loan amount.
2. Assume the Existing Mortgage
In some cases, you may be able to assume the existing mortgage in your name only without refinancing. This involves legally taking over responsibility for the loan and releasing your ex-spouse from liability.
To assume a mortgage loan, you’ll need to:
-
Contact your mortgage lender and ask about their assumption policies. Not all loans can be assumed, so check your loan documents.
-
Provide documentation such as your divorce decree and evidence that you’ve been solely responsible for mortgage payments.
-
Get your ex-spouse to sign a quitclaim deed transferring their rights in the property to you and releasing their liability on the loan.
-
Obtain written approval from the lender to release your ex from the mortgage.
Assuming the mortgage avoids costs of refinancing, but usually requires that you re-qualify financially for the loan on your own. Ask your lender about any fees for assuming the mortgage.
Tips for Removing an Ex from the Mortgage
-
Act sooner rather than later to remove your ex. It becomes more complicated if they stop making payments or declare bankruptcy down the road.
-
Consult a real estate attorney to ensure the property transfer and release of liability is done correctly.
-
Be strategic with timing. For example, wait until after divorce is finalized so the mortgage assumption aligns with the property division order.
-
Get your divorce agreement notarized so the mortgage company can accept it as proof your ex agreed to give you the home and mortgage.
-
Be patient as it can take 30-60 days to complete the process once you submit all required paperwork to the lender.
Alternatives if You Can’t Refinance or Assume the Loan
If refinancing or assuming the mortgage isn’t possible, here are two other options to consider:
Sell the home: This removes both you and your ex from the mortgage, allowing you each to make a fresh start. You’ll split any proceeds based on your divorce agreement.
Bring in a co-signer: Ask a family member or new partner to co-sign the mortgage with you. Their additional income may help you qualify to assume the loan on your own.
As a last resort, you can seek your lender’s approval to keep your ex on the loan temporarily if they agree to sign a quitclaim deed. But this should only be a short-term solution, as you’ll likely still need to refinance or sell the house further down the road.
Get Professional Support to Remove Your Ex from the Mortgage
Removing an ex-spouse from the mortgage requires carefully following proper real estate and mortgage procedures. Seeking professional help can guide you through the process and protect your financial interests.
-
Consult an attorney to handle the legal transfer of ownership and release of liability.
-
Work with a mortgage broker to explore your refinance options and find the best new loan.
-
Contact a housing counselor to understand all your alternatives if refinancing or assuming the loan isn’t feasible.
-
Talk to a financial advisor to evaluate the overall financial impact and tax implications.
Taking the right steps to remove your ex-spouse from the mortgage loan ensures you can move forward in your new life after divorce. While it can be a lengthy process, separating yourself fully from the legal and financial ties to your former partner is worth the effort and peace of mind.
Taking a name off a mortgage vs. taking a name off a title Refinancing after divorce removes a spouse from the mortgage, but it doesn’t automatically remove the ex-spouse’s name from the house title. While only one co-borrower will retain ownership of the home after the other is removed from the mortgage, the departing co-borrower may still have to take additional action to remove their name from the
If your lender wants to, they have the power to remove someone’s name from the mortgage without needing to refinance. However, many lenders have little motivation to release a co-borrower from liability or modify the loan to remove a name—after all, the more people who are liable for the debt, the less risky the loan is for the lender. If your sole motivation for avoiding a refinance is to avoid having a lender look into your financial situation, you should know that most lenders will evaluate your ability to keep up with future mortgage payments alone before they’ll release your co-borrower from liability.
It may be more likely that your lender will cooperate if you have a divorce decree (a document that describes how property is to be divided in a divorce) and a quitclaim deed (a document used to voluntarily give up one’s ownership rights).
Mortgage assumption is a special type of home sale where one person takes on or “assumes” responsibility for an existing mortgage loan. In the case of divorcing spouses or co-borrowers who are already on the mortgage together, assumption can release one person from the loan so that the other becomes the sole owner of the home.
Many conventional mortgages aren’t assumable because they contain what’s called a due-on-sale clause, a clause that allows the lender to demand that you repay them in full if the home is sold. However, most government loans and some conventional loans are assumable.
Learn more about what is an assumable mortgage and how to get one.
If the person whose name you want removed from the mortgage declares bankruptcy, their debts — including the mortgage debt — could be discharged, meaning that they no longer have to pay them. This could be a boon for you as their co-borrower, if your goal is to take sole ownership of the home without going through a refinance.
Consequences for the person who will remain on the mortgage
- Higher mortgage burden. Once your co-borrower departs you’ll have to make mortgage payments all on your own. This could be a shock to your monthly budget, especially if your co-borrower used to contribute to the mortgage payments or household income. Make sure you’re prepared to take on the entire home loan yourself and, if you’re not, consider downsizing.
- Sole liability. Once you’re the only person left on the mortgage, you’ll be the only one liable for the loan. Only your credit will be on the line — a mortgage default could be devastating to your credit score, but won’t affect your former co-borrower’s credit.
- May still not have sole ownership. Removing someone from the mortgage doesn’t automatically strip them of ownership rights. The only way to transfer ownership of real estate — which is legally distinct from liability for the mortgage debt — is through a deed. In order to give up their rights, your co-borrower will likely have to file a quitclaim deed.
Use our mortgage calculator to calculate your estimated monthly payment with your sole criteria.
Divorce – Remove Spouse from Mortgage and Deed
FAQ
Can I remove my ex-husband from my mortgage without refinancing?
Can you remove someone’s name from a mortgage without refinancing?
How can I get my name off a mortgage after divorce?
What happens if you get divorced but your name is still on the mortgage?
Can I remove my name from my mortgage after divorce?
Also, the lender has the right to go after your ex if you default on the loan. You simply don’t want to have your finances tied closely through your mortgage after a divorce. Removing a name from the mortgage after separation is the best way to resolve this potential problem. Here are four ways you can do this. 1. Refinance
Should I remove my ex-spouse from a home loan after divorce?
It can be an important step if that former spouse plans to purchase a house after the divorce and take on a new mortgage. Removing an ex-spouse from a home loan will also lower their debt-to-income (DTI) ratio, which will make it easier to secure a loan with a fair interest rate. 2. To Protect Your Credit
Can a refinance remove your ex spouse from a home loan?
Refinancing can help remove your former spouse’s name from the home loan. Your current mortgage was taken out in both of your names, so you both share an equal interest in the property. When you take out a new mortgage with a refinance, you can remove your ex-spouse from the loan and title.
How do I get a mortgage after a divorce?
Contact the company that manages your mortgage, and explain your divorce agreement. Tell the lender you’d like to assume full control of the mortgage without your partner’s input and ask about the next steps. Some banks issue paperwork that moves an existing loan from two parties to just one. But many treat this transfer as an entirely new loan.