Love and marriage. Divorce and mortgage. The rules that govern the marital playing field are fuelled by family law in British Columbia. Homeowners who have decided to divorce may be wondering what happens with their mortgage if they’re carrying one. In most provinces, assets acquired during the marriage are divided equally between the partners, and that holds true for a matrimonial home.
A bank or mortgage company doesn’t care that you’re getting divorced, who’s going to live in the house or who has the right to live there. All it cares about is that the mortgage will continue to get paid. There are a few ways to make sure that happens.
If either partner wishes to remain in the home, the details of the mortgage can be changed. The mortgage can be put into the name of the remaining spouse, but there will be a fee associated with doing this. The mortgage could likely also be refinanced, depending upon whether the remaining spouse can afford to make the mortgage payments by himself or herself. If a lender agrees to remove one spouse from the mortgage, a lawyer still needs to be consulted to remove the other partner from the title.
But many divorcing couples decide to sell the marital home and split any dividends from the sale. It is actually the easiest route if both people agree. Whatever decision is made regarding a matrimonial home, a family law lawyer in British Columbia may be able to provide legal advice that is geared to a client’s particular situation. A lawyer can help a client sort out such details regarding divorce, such as what could happen with a family home.