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Buying my spouse out of the marital home, her name is on the mortgage

  • ThisIsGoingWell
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11 Apr 25 - 11 Apr 25 #525611 by ThisIsGoingWell
Topic started by ThisIsGoingWell
We have now got as far as a draft Consent Order which agrees I will buy out my spouse of the marital home.
We own as joint tenants with an existing mortgage which has a hefty early redemption clause I wish to avoid, which expires in 7 months.

The Consent Order states that I will make my best effort to secure a mortgage in my own name, or failing that to indemnify my spouse. I do not quite understand this last part. I think it means there is a mechanism where we would both remain on the mortgage but she is not considered responsible for payment (or consequences of non-payment), is that right?

Figuring out the mortgage is the one element of this which is stressing me out - I was the sole earner so can afford it, but it just seems a bit complicated to figure out what to do.

I understand it's a common situation and have read this useful guide but would welcome any further help as it's a bit overwhelming... what actions to take in what order?

divorce.wikivorce.com/library/faqs/sorti...e-or-separation.html
Last edit: 11 Apr 25 by ThisIsGoingWell.

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12 Apr 25 #525613 by WYSPECIAL
Reply from WYSPECIAL
As far as the lender is concerned she would still be liable for payments and they could chase her for the full amount if it wasn’t paid.

The indemnity is if this were to happen you are promising to make good her losses.

Best outcome is if the lender will allow you to take the loan on in just your name and release her from the mortgage. If they won’t then she will have to stay on it or the mortgage will have to be redeemed, which you don’t want to do because of the early repayment penalties.

Bear in mind if she remains on the mortgage she is unlikely to get another mortgage herself unless she is a very high earner.

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