Remaining mortgage debt on the home in a divorce: what does it mean and who bears it?

As long as you took out the loan together, you are both jointly and severally liable. This means that the bank may request the full outstanding amount from each of you individually. So the bank can come to you alone for the entire remaining debt, even if you assume you each bear half. You make agreements about the division between yourselves, but towards the bank you both remain responsible.

That shared responsibility only ends with a release from joint liability. That is a separate step in which the bank releases one of the partners from the loan. The bank only agrees to this if the remaining partner can bear the loan alone. As long as that release is not in place, you both remain bound to the loan and thus also to any remaining debt, regardless of what is stated in the divorce settlement.

It is best to record in writing how you divide the remaining debt between yourselves. Discuss the concrete consequences for your situation and the correct wording with your notary. We do not provide legal or tax advice on this.

There is no one-size-fits-all solution, but in practice these directions come up most often:

• Pay the shortfall together. If you have savings, you can settle the difference so that the loan is fully paid off and no remaining debt is left. This is the most decisive path, although it is not feasible for everyone.
• A repayment plan with the bank. If you cannot pay the shortfall in one go, discuss with your bank whether you can repay the remaining debt in installments. Banks are sometimes willing to make an arrangement, especially if you approach them yourself before payment problems arise.
• Selling the home anyway to limit the debt. Continuing to live there and jointly bearing the loan is not always desirable after a divorce. By selling the home, you draw a line under the joint loan and limit the remaining debt to a concrete, defined amount that you can tackle.

Which option suits you best depends on your budget, your relationship with your bank, and the agreements you make with your ex-partner. Always contact your bank and your notary about this.

Every month that the joint loan continues, you pay interest and you both remain tied to that debt. In a divorce, you want to cut that tie as quickly as possible. The longer the situation drags on, the more tension rises and the longer the remaining debt hangs over your heads.

A sale brings clarity. At the moment the home is sold and the proceeds go to the bank, you know exactly how large any shortfall is. That fixed amount is much easier to tackle than an open situation where costs keep running. You can then choose deliberately: pay off, spread, or make an arrangement.

A sale through a traditional real estate agent can take a long time, with viewings and uncertainty about the final price. For those who want clarity quickly, a direct sale to a direct buyer is an alternative. You then receive a fixed offer and immediately know where you stand, without the home being on the market for months.

A direct buyer purchases homes directly. This means that you do not end up in a long sales process, but you receive a fixed, non-binding offer on your home. Especially in a divorce, when you want clarity about the remaining debt quickly, this can bring relief.

This site is not a real estate agent, direct buyer, notary, or lawyer, and does not provide legal or tax advice. For the division, the release from joint liability, and the handling of your loan, you work with your bank and your notary. What you find here is a way to compare direct buyers and gain clarity about what your home is worth now, so you can make an informed choice.

You decide entirely yourself. Requesting an offer from a direct buyer obliges you to nothing and costs you nothing. It gives you a concrete starting point to tackle the remaining debt together with your ex-partner and your bank.