YOUR QUESTIONS / 5 ANSWERS
Separation, Divorce & Spousal Buyouts
Practical answers to help you prepare for a conversation about your mortgage.
Can I keep the home after a separation or divorce?
Possibly. If you want to retain the property, you may need to qualify to carry the mortgage and complete a legally documented transfer or buyout. The separation agreement and lender requirements are important.
What is a spousal buyout mortgage?
A spousal buyout generally refers to mortgage financing used to transfer one spouse's interest in the matrimonial home to the other under a separation agreement or court order. Specific insured or conventional programs may be available depending on the file.
Can I refinance to pay my former spouse their equity?
Potentially. The amount available depends on property value, existing debt, the agreed settlement and the mortgage program. Legal documentation is normally required.
Can support payments affect mortgage qualification?
Yes. Required child or spousal support payments can be treated as obligations, while eligible support income may be considered under lender guidelines when properly documented.
Should I remove my name from the mortgage before signing over title?
Mortgage liability and property ownership are separate legal issues. Do not assume transferring title removes responsibility for the mortgage. Work with your lawyer and lender so both the title and financing are handled correctly.
General information, not an approval, rate offer or personal legal or tax advice. Mortgage options depend on the lender, insurer, property and application. Government programs and lender requirements can change.
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