Release from joint liability in divorce: putting the mortgage in one name

When you bought a home together and signed the credit agreement, you both became jointly liable for the loan. That's a strong word with a concrete meaning: the bank may hold each of you separately responsible for the full outstanding amount, not just half. Who actually pays doesn't matter to the bank.

That liability doesn't automatically stop upon divorce. Even if one of you moves out, even if the agreements are neatly recorded in a divorce settlement, you both remain equally liable to the bank. If your ex stops making the monthly repayments, the bank can come to you for the whole amount. And as long as that debt remains in your name, it weighs on you when you later want to buy a new home or take out a loan. That's why untangling that shared debt is one of the most important things to arrange in a divorce.

Release from joint liability means the bank removes one of the two borrowers from the loan. From that moment on, the remaining partner carries the mortgage entirely alone, and the departing partner is no longer liable to the bank.

This usually goes hand in hand with taking over the home. One of you wants to stay in the house, buys out the other's share, and takes over the loan. The bank must then be willing to do two things: put the loan in one name and release the departing partner from their obligations. That happens in writing. Without that document, you remain liable, no matter what your mutual agreements say.

Important to know: a mutual agreement between the two of you doesn't bind the bank. You can perfectly agree that your ex pays the loan alone, but as long as the bank hasn't formally released you, it can still hold you accountable if things go wrong.

The core of the story is the financial capacity of the one staying in the house. The bank checks whether that person can repay the entire loan on their own, without the income of the departing partner. That's a stricter test than before, because a single-income household naturally borrows less easily than a two-income one.

The bank assesses, among other things:

• the income of the remaining partner and how stable it is;
• job security and type of contract;
• any other credits and fixed expenses;
• the ratio between the monthly payment and income.

Often, an extra burden comes with a takeover. The one staying usually also has to buy out the other's share. If extra borrowing is needed for that, it increases the monthly payment and thus the required capacity. The creditor insurance is also reviewed in most cases, because it often covered two people and now must continue on one.

This is where many divorces hit a snag. The bank is not obliged to release someone from joint liability. It sets its own lending conditions and weighs its own risk. Two signatures on the loan give it two people to hold accountable. Dropping one of them means less security, and it only does so if the remaining borrower is sufficiently solvent.

For many people, that's exactly the problem. What was manageable as a couple before turns out to be too heavy with one income. The bank calculates, concludes the burden is too high relative to income, and refuses the release. Your ex might then be able to stay in the house, but you remain co-liable for the loan. That's an uncomfortable situation: you carry the risk of a home you don't live in and no longer want to own.

If the release is refused, there are only a few practical paths. The one staying looks for refinancing at another bank, provides additional guarantees, or you both decide to sell the home together. That last option eliminates the shared debt for both of you in one go.

If the takeover fails the affordability test, selling is often the calmest solution. Upon sale, the outstanding credit is first repaid from the proceeds. What remains is divided according to your situation. And, just as important, the joint liability disappears for both of you once the loan is repaid. Neither of you remains tied to that debt.

Selling itself also brings costs. Whoever doesn't sell but takes over the home pays in Belgium the so-called division duty, commonly known as the misery tax. In Flanders, that rate is 1% in case of divorce or end of legal cohabitation (2.5% in other cases). In Brussels it's 1%. In Wallonia, the general rate has been increased to 3% since 2026, but in case of divorce or end of legal cohabitation, the reduced rate of 1% still applies there. That division duty is calculated on the full value of the home in a full division, not just on the transferred part. In a regular sale to a third party, that division duty doesn't apply. Discuss the exact rates and your situation with your notary.

A sale can go through an estate agent on the regular market, or through a home buyer when you want quick certainty without months of viewings. We don't sell homes ourselves. As a comparator, we put buyers side by side so you get a fair picture of what your home can yield, without being tied to one party.

Both in a takeover and in a sale, the notary comes into play. When one of you takes over the home, you exit the undivided co-ownership via a notarial division deed. The notary arranges the property transfer, and the bank separately arranges the credit and any release from joint liability. These are two tracks running side by side.

To assess the release, the bank typically asks for:

• a request for release from joint liability;
• proof of income and employment of the remaining partner;
• an overview of other running credits and expenses;
• an estimate or valuation of the home;
• the divorce settlement or the arrangement regarding the family home.

Allow some time between the request and the bank's response. Because there's file handling and sometimes adjustments to the insurance, there may also be costs involved. The legal, fiscal, and financial side varies from file to file, so get guidance from your own notary, and where needed a lawyer or accountant. This guide informs you but doesn't replace that personal advice.