It is important to know when you are divorcing that the mortgage for your jointly owned home is contracted with both of you and your lender. Therefore, your lender needs to be a part of any changes that you make. While this article suggests refinancing, you can also speak with your current lender about the possibility of a release/assumption of liability in order to take the marital residence liability from joint names into one spouse’s name alone. I call this ‘refinance light’ since you will still have to qualify in your name alone, but it is less of a burden and expense than a refinance. That being said, there are several factors to consider in determining which path is best for your circumstances.
Something else to keep in mind that people don’t usually know is that while the note on your mortgage (your personal promise to pay) may be in one spouse’s name, if the deed/ownership of the property is joint, then the mortgage used to secure the property is in joint names also. People often want to use a quitclaim deed to transfer ownership of the property thinking that the liability for the alternate spouse has been removed, but that is not the case. The joint mortgage still remains in his/her name unless the lender is involved in the removal.
Learn more about What to Do About Your Mortgage When You’re Getting Divorced here.