Active Mortgage · Guide
Your mortgage after divorce or separation
Separation brings many decisions at once, and the family home is often the largest. Whether you plan to keep the home, sell it or buy a new one, understanding your mortgage options can make the next step clearer.
Keeping the home
If one person wants to stay, they usually need to buy out the other's share of the equity and take over the mortgage on their own. This is often done through a refinance. Some lenders offer programs specifically for spousal buyouts that may allow a higher loan-to-value than a regular refinance: [PLACEHOLDER: current spousal buyout program limits].
The person keeping the home needs to qualify on their own income, which may include support payments if they're documented.
Selling and starting fresh
If you sell, the mortgage is paid off from the proceeds and the remaining equity is divided according to your agreement. Ending a mortgage early may involve a penalty, so check the amount before you list.
What lenders need
Lenders typically want a signed separation agreement or court order showing how the property and any support are handled. Support you receive may count as income once it's documented and consistent; support you pay is treated as an obligation.
Getting support
Your lawyer handles the legal side; our brokers can help with the mortgage side, including what you may qualify for on your own and how to structure a buyout. A conversation early in the process can help you set realistic expectations.
Planning your next home
If you're buying a new home on your own, you'll qualify on your own income and debts. Your share of the equity from the family home may become your down payment. Lenders will want to see the separation agreement and proof that the proceeds have been received or will be paid on closing.
It can take time for a credit file to settle if joint accounts are closed or divided. Keep paying everything on time, and check your credit report to make sure shared debts are reported correctly.
A gentle note on timing
Separation is stressful, and there's no need to make every decision at once. A conversation with one of our brokers can give you a clear sense of what you'd qualify for, so you can make choices about the home with confidence and in your own time.
How our brokers can help
Active Mortgage is a team of brokers working with a range of lenders. We can review your situation, explain the options that apply to you and compare real offers side by side. There's no cost to talk with us, and you're never under pressure to proceed.
Common questions
Can I buy out my spouse without a final agreement?
Most lenders need a signed separation agreement or court order before funding a buyout.
Does child or spousal support count as income?
Often, if it's documented and received consistently. Lender rules vary.
Can I remove my ex from the mortgage?
Usually it requires the remaining borrower to qualify alone, often through a refinance or assumption approved by the lender.
Related tools and services
Ready to talk it through?
Book a free call with our team or start a pre-application when you're ready.