Mortgage Liability After Divorce

middleclassbutpoor

Not sure if your question has been answered around what would happen if he died.

if he was to die then the executor(s) of his estate would need to liquidate his estate and settle any debts/liabilities that exist.

As long at the monthly mortgage payment is being met and you agree to sell the house then you will share any positive or negative equity based on a 50/50 basis unless you have any other documented agreements in place to state otherwise.

If at anypoint up to the sale should the tennant not pay or the property be vacant, you are still required to make the monthly payments.

silvercar

You can take out life insurance on him, though it would be as expensive for you to do it as for him. The advantage of you doing it is that you ensure that you are the beneficiary. If he does it, he can write the policy in trust for the current wife's benefit.

You would need to declare any medical conditions he has.

As far as his tax affairs go, if the mortgage interest is high, there may be little profit in the venture and no tax to pay.

mia_fawcett

Thanks everyone for your help. I'm reassured by the view that if he died his estate would still be liable for (his half of) the outstanding mortgage. Not that I'm wishing him dead!!!
I'll speak to the solicitor who handled my divorce as to whether we can change the Court Order which said "sell the buy-to-let house" given that it hasn't sold in 2 years!!!

silvercar

mia_fawcett wrote: »

Thanks everyone for your help. I'm reassured by the view that if he died his estate would still be liable for (his half of) the outstanding mortgage. Not that I'm wishing him dead!!!
I'll speak to the solicitor who handled my divorce as to whether we can change the Court Order which said "sell the buy-to-let house" given that it hasn't sold in 2 years!!!

A mortgage isn't in two halves. If he died, then any joint finances become yours alone. The same as a joint bank account would become a single one. There would be a potential liability for that mortgage from his estate, but my guess would be that you would have to push for it - it wouldn't happen automatically. What would happen automatically would be that the mortgage becomes yours alone. With property ownership you can hold it as joint tenants or tenants in common, with mortgages there isn't that choice.