What happens to your mortgage when you decide to divorce?

If you divorce in the Netherlands and have a mortgage, you have numerous alternatives for dealing with the mortgage.

Here are some possible scenarios:

1. One spouse takes over the mortgage loan: If one spouse is able to take over the mortgage loan and make the payments, they can keep the property. To transfer their ownership in the property, the other spouse must sign a final deed at the notary office.

2. The property is sold and the mortgage is paid off: If neither of the persons are able to take over the mortgage loan, the property may need to be sold and the revenues used to pay off the debt. Any leftover excess value can be distributed between the spouses in accordance with the conditions of the divorce settlement.

3. Refinancing the mortgage: If one spouse is able to take over the mortgage but the lender demands a new loan application, the spouse taking over the mortgage may need to refinance the loan in their own name.

Crucial to take into consideration

It's crucial to remember that the process will be determined by your personal financial situation as well as the conditions of your mortgage loan. Working with a financial adviser or an attorney to assist you understand the process and make the best decisions for your case is a smart idea.

In the Netherlands, there are numerous choices for dealing with a mortgage following a divorce, including one spouse taking over the mortgage, selling the home and paying off the mortgage, or refinancing the mortgage. To make the best judgements for your case, thoroughly analyse your alternatives and consult with a financial expert or an attorney.