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Joint mortgage: What to do in case of a separation?

When you’ve been with your partner for a long time, the most common thing is to buy a house together. And if you don’t pay the entire amount at once, it’s normal for both of you to bet on a joint mortgage. Certainly, it’s a good way to meet expenses. But if the relationship ends, what should you do? We’ll tell you everything you have to know.

Options for resolving the problem of a joint mortgage after breakup

A property is considered to be an indivisible asset so it would be necessary to reach an agreement between both parties to see the best solution. What are the options?

Sell the property

If both agree and the economic situation allows the mortgaged property to be sold quickly and at a good price, this is the simplest and most advantageous option for the couple’s members. Once sold, the mortgage would be cancelled. However, the tax costs of selling it are often high, which must be taken into account.

One of the two keeps the property

Another option is that one member of the couple stays with the common property. In this case a change of ownership of the property and the mortgage has to be made in the name of the person who keeps it, and this person has to pay a consideration to the other party as compensation for the monthly mortgage payments made jointly. This solution is similar to that of the sale but with the advantage that the fiscal expenses are lower.

Give the property to the bank

This is known as the payment of the property and means that the bank with which you have the mortgage, will keep your property. With this you will not have any expenses but also no benefits. How to get it? You should try to reach an agreement with the bank but we warn you it’s usually complicated. For the bank to accept it, the pending debt would have to be much less than the value of the property and both members would have to prove that they or their guarantors (if they have them) cannot cope with the mortgage.

Joint Mortgage


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