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Dividing your property when you are getting a divorce is a complex issue, and if you have a joint mortgage, there are several problems you must resolve. The simplest way to settle the home ownership issue is by selling your house. However, if you have decided to leave and let your ex-spouse remain in the home, even if he or she is going to take over the payments, you are still responsible for the debt. The lender must refinance the loan in order to remove your name from the mortgage. For this to happen, your ex-spouse must be able to qualify under the mortgage lender’s guidelines.
Removal from a Joint Mortgage
If you have agreed to pass ownership of your house to your ex-spouse, the specific terms should be stipulated in your divorce documents. You will have to release your interest in the property by filing a quitclaim deed. Make copies of the quitclaim and give one to your ex-spouse to use as proof of ownership in the property. He or she will need this for the mortgage lender to process the refinance request.
Your ex-spouse will still have to qualify for the loan in order to have your name removed. He or she may have to use a cosigner if the lender will not approve the refinance.
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