Divorce and Financial Planning

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Divorce and Financial Planning – Some Help

Divorces can be hard, no matter what the individual circumstance or situation, CD Financial are here for you. We understand that there can be unique situations and that tensions can be high and we are here to guide you through the mortgage process as pain free as possible.

We know you have been under enough stress and we aim to take your stress away by making sure you understand your position, in terms of your mortgage and your future commitments.

When it comes to financial assets and pension sharing orders, things can get complicated and it is important to handle your money and assets with care to get what you want from the financial settlement. Here at CD Financial, we deal with divorcing couples regularly and give them peace of mind knowing their finances are dealt with.

What Happens to a Joint Mortgage when you get Divorced?

A joint mortgage means that both people on the mortgage are liable for the debt. Your lender would have assessed your income together but the decision of how it was paid back – in terms of who pays what – was up to both of you to decide.

I am Getting Divorced can I stop Paying my Mortgage?

You need to keep up with your mortgage repayments even if you have moved out of the property. You will end up causing damage to your own and your ex’s credit score and the property could end up being repossessed.

If you stop paying mortgage payments out of spite or because you are not occupying the property anymore, you will end up doing yourself more harm in the long run. It would be worth seeking advice from a financial adviser at CD Financial to discuss what your options are.

If the property is a family home it is even more imperative to keep up with mortgage repayments. This is not only because there are children involved but also because of the long term financial effect it can have if the home gets repossessed.

What if my name is on the Mortgage but not the deed if I am Getting Divorced?

The name or names on the deed indicates the legal owner(s) of the property. A mortgage is a loan to buy the property, it will help that your name is on the mortgage but it doesn’t necessarily give you any rights.

Every situation is different, and it is imperative to seek advice from an expert to tailor it to your case. CD Financial understands how hard these things can be to talk about and we want to make sure you get the right resolution.

You can register your interest in the property to protect your position if you have left. This means that your ex partner cannot sell without you being notified first. If the property is registered in the Land Registry, then you can protect your rights through a ‘home rights notice’. You will need your ex partner’s name or whoever’s name the deeds will be in and its title number.

If the property is on the Land Registry, then you only have to fill out a form called HR1, which can be found here on the Government website.

If your property is not registered with the Land Registry then you can protect your position by applying for a ‘class F land charge’ at the Land Registry which costs £1 on the Government’s website.

You can only protect your right to live in one property at a time. It is important to seek professional advice if you are having any living issues or finance issues due to a relationship breakdown.

Can my Ex-Partner take over the Mortgage?

Your ex-partner can take over the mortgage. It is a common choice amongst couples who have decided to divorce or dissolve their marriage or civil partnership for only one partner’s name to remain on it.

You must ensure that you can afford to take over the mortgage and you have a good financial history if you are planning on taking it over or buying your partner out. You do not want to commit to more than you can, especially when things are in a state of change.

If you can decide to keep just one name on the mortgage then whoever is taken off will be able to borrow more from being on their ex-partners mortgage. Whoever decides to stay in the house will not have to rely on their ex for payments.

If you decide to break the link between your credit files the way you and your ex manage your own debts will no longer affect each other. Lenders will need to know what is going on and will also want to know how you are going to ensure mortgage repayments do not fall behind.

How do I Remove my name from the Mortgage if I am Getting a Divorce?

It is important to only have whoever is committed to making repayments on the mortgage on the actual mortgage itself. If you have your name on there but have no intentions of paying the mortgage, you will still be liable.

Refinancing is often the best way to take a name off of a mortgage, depending on your lender, it may be the only choice you have. If you can afford to and everyone agrees, it will be fairly easy to refinance.

What if the House is in Negative Equity and I am getting Divorced?

If the property you once shared is in negative equity then it doesn’t mean you cannot get divorced. It just means that you will need to make provision for the property and will decide how it shall be split in a consent order.

A consent order is a legally binding document that allows you to agree how things will be split upon a divorce being completed. It could be worth waiting some time before selling if this is an option as it may be in negative equity now but this could change in the future.

Who can Help me deal with my Finances?

Get in touch with a member of CD Financial today to speak about all of your finance needs during this difficult time. There is no point in adding more stress to your situation by confusing yourself on things you are unsure of.

CD Financial advisers have years of experience in everything from dealing with pension schemes to assets in the most tax efficient way.

The future can seem uncertain but one thing you can be certain of is CD Financial are here to help and protect your future. We understand how difficult it is to understand the ins and out of money which is why we have done it for you.

We are here to listen to you and take time to ensure we give the best possible advice for your circumstance. We understand how difficult divorce settlements can be – a financial planner can help give you financial advice and help you understand about dividing assets.