Maryland

Who Is Responsible for the Mortgage After a Divorce?

Everyone who signed the mortgage owes the lender. The loan is a contract with the lender, so read your loan papers and ask your lender what removes a name. Maryland Family Law section 8-208(c) lets the court order either party to pay the mortgage and related costs. Keep paying while the house is listed.

By Marc Cormier

Licenses: Maryland #620443 | Virginia #0225175181 | DC #SP98365998 | Berkshire Hathaway HomeServices

27+ years in real estate. 800+ closed transactions.

Certified as a Certified Divorce Real Estate Expert (CDRE) in 2014.

Last updated: October 2, 2026

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Who owes the mortgage after a divorce?

Everyone who signed the mortgage owes the lender. The loan is a contract with the lender, so read your loan papers and ask your lender what changes your name on it.

A mortgage is a loan secured by the house. Your divorce agreement says which spouse pays between the two of you. Maryland Family Law Article section 8-208(c) lets the court order either or both parties to pay the mortgage or rent, related indebtedness, maintenance, insurance, assessments, taxes, or similar expenses.

Do not assume a divorce paper changes your loan. Call your lender and ask.

How do you get a name off the loan?

Three routes are worth pricing. Each one involves the lender.

Route	What happens	What to ask
Sell the house	The sale proceeds pay off the loan.	Ask your lender and title company for a payoff figure.
Refinance	One spouse gets a new loan in one name. The new loan pays off the old one.	Ask a lender if the keeping spouse qualifies on one income. The lender decides.
Ask about taking over the loan	One spouse asks the lender about taking over the existing loan.	Ask your lender whether any option exists on your loan, and what it costs.
Stay on the loan together	Both names stay on the loan.	Put payment rules and a sale date in writing. Ask your attorney to review them.

What should you ask a lender before you promise to keep the house?

Ask four questions: Will you approve a loan on my income alone? What is the new loan amount? What are the closing costs? What payment results? The lender decides, and the answers change the plan.

A refinance is a new loan that pays off the old one. It comes with a new rate, new closing costs, and a new qualification. The lender looks at the keeping spouse's income alone. That changes the math. The house costs $3,500 a month for the loan payment, taxes, and insurance.

Line	Two incomes	One income
Gross monthly income	$14,000 ($8,000 + $6,000)	$8,000
Monthly housing payment	$3,500	$3,500
Payment as a share of income	25% ($3,500 divided by $14,000)	43.75% ($3,500 divided by $8,000)

The payment did not change. The share of income almost doubled. Ask the lender what share it accepts.

Before you fight for the house, price out the loan, taxes, insurance, and repairs on one income. The buyout fails if the refinance fails.

If keeping the home does not work, here is how a divorce sale runs.

What if payments are missed?

Missed payments stay owed. The loan is a contract with the lender, so ask your lender how a late payment on a loan with two names is handled.

A spouse who moved out still signed the loan. An agreement that says your ex pays is a promise between the two of you. Read your loan papers to see what the lender expects.

The loan payment is $2,400 a month. Three missed payments: 3 x $2,400 = $7,200. That is before any late fees.

Ask your lender what happens if payments stop. Do not wait until it happens.

What should you do about the mortgage while the house is listed?

Keep every payment current while the house is listed. A missed payment adds to what is owed and reduces the money you split at closing.

1Write down who pays the mortgage, taxes, insurance, and utilities. Ask your attorney to review it.
2Write down whether the paying spouse is repaid from the proceeds.
3Set the payment on autopay and share the confirmation with both owners.
4Keep both borrowers' access to statements and payment history.
5Do not stop paying to force a sale or to win a price argument.
6List every loan and lien on the house. That includes second mortgages and home equity lines.
7Once you have a contract, ask your lender and your title company how to get a payoff figure for each loan.

Four months of carrying costs at $3,500 a month is $14,000. Six months is $21,000.

What is a payoff letter and why does it matter?

A payoff letter is a written statement from the lender that shows the exact amount needed to pay off the loan on a stated date. It differs from the statement balance because interest accrues and fees apply.

The house sells for $600,000. The statement balance is $250,000.

Line	Using the statement balance	Using the payoff letter
Sale price	$600,000	$600,000
Loan payoff	minus $250,000	minus $251,200
Agent commission at 6% ($600,000 x 0.06, example rate, other closing costs not shown)	minus $36,000	minus $36,000
Net before taxes and other costs	$314,000	$312,800
Even split	$157,000 each	$156,400 each

The payoff letter amount: $250,000 balance + $1,050 interest owed since the last payment + $150 late fee = $251,200.

The statement balance overstates the net by $1,200 ($314,000 minus $312,800). Each spouse plans around $600 too much.

Second mortgages, home equity lines, and unpaid HOA dues need their own payoff figures. Ask your title company for the figure on every one. Commission is negotiable. Maryland transfer and recordation taxes are not in this example. Ask your title company for those figures.

What this means for your house

Your agreement or a court order decides who pays the mortgage between you and your spouse. Section 8-208(c) lets the court order either or both parties to pay the mortgage and related costs.
The loan is a contract with the lender, so read your loan papers and ask your lender before you rely on any agreement.
Under Maryland Family Law Article section 8-205(a)(2), the court is allowed to transfer a jointly owned principal residence to one spouse if that spouse obtains a release from the liens, or to authorize a buyout, or both. The transfer is subject to the lien terms. A lien release is a lender question.
Both owners sign the listing agreement, every offer, and the closing papers when both are on title.
Ask your attorney whether any court order or agreement in your case limits selling or borrowing against the home.
IRS Topic no. 701 says you qualify to exclude up to $250,000 of gain from your income, or up to $500,000 on a joint return with your spouse. Ask your tax professional how a sale affects your taxes.

Where does mortgage planning go wrong?

Mortgage planning goes wrong in six common ways. Each one costs money.

Mistake	What it costs
Assuming a divorce paper removes your name	You signed the loan contract. Read your loan papers and ask your lender.
Letting one spouse pay late	Late payments stay owed. Ask your lender how they are handled on a loan with two names.
Promising a refinance before asking a lender	The buyout fails and the house goes back on the table.
Using the statement balance instead of a payoff letter	The net is overstated by $1,200 in the example above.
Skipping second loans and liens	A surprise payoff at closing cuts the proceeds.
Stopping payments to force a sale	Fees and debt grow for both spouses, and the house sale gets harder.

I have seen this mistake before. One spouse moves out, the other stops paying, and both names are still on the loan. This is where people usually get hurt. They trust the papers between the spouses and never call the lender.

Most people ask the lender nothing until the refinance falls apart. Ask first.

Local note for Montgomery County: The Montgomery County Circuit Court runs a Family Law Self-Help Center. It is a free walk-in clinic staffed by attorneys, in the South Tower, First Floor, Room 1500. It gives general legal information or limited legal advice on divorce, custody, and related matters. You still pay case fees and costs. Source: https://www.montgomerycountymd.gov/circuit-court/services/family-law-self-help-center

If keeping the home does not work, here is how a divorce sale runs.

Common questions about the mortgage after a divorce

Q: How do I get my spouse off the mortgage?

Price three routes. A sale pays off the loan from the proceeds. A refinance puts the loan in one name. A takeover of the existing loan is a question for your lender. The lender approves or denies each route. Read your loan papers and talk to a lender before you promise a buyout. If keeping the home does not work, here is how a divorce sale runs.

Q: Can I refinance on one income?

Approval rests with the lender, which looks at your income alone. In the example, a $3,500 payment is 25% of $14,000 on two incomes and 43.75% of $8,000 on one. Ask what share the lender accepts and get approval in writing before you sign a buyout. A failed loan means a failed buyout. Add a backup sale date and have your attorney write the terms.

Q: What if my spouse stays on the mortgage after the divorce?

Staying on the loan means both names remain on the contract with the lender. Ask your lender what that means for you. Before signing, write down payment rules, a refinance deadline, and a backup sale date, and have your attorney review them. Pay every installment on time while both names are on the loan.

Q: What happens if we stop paying the mortgage?

A missed payment stays owed and adds fees. Three missed payments of $2,400 total $7,200 before fees. Stopping hurts everyone on the loan. Ask your lender what follows a missed payment on your loan and ask your attorney how it affects your case. Keep paying while the house is listed.

Q: Who pays the mortgage during use and possession?

Your order or written agreement settles it. Under section 8-208(c), the court is allowed to order either or both parties to pay the mortgage and related costs. Record who pays each bill and whether that spouse gets repaid from the sale proceeds. Your attorney words it.

Q: What happens to the mortgage when we sell?

Start from the sale price. Subtract the loan payoff and the costs of sale to reach your net. Get the exact payoff for your closing date from your lender and your title company. Second mortgages and home equity lines each need a payoff figure. Whatever remains is split as your agreement or the court decides.

Q: What is a payoff letter?

A payoff letter comes from the lender and states the exact sum needed to close out the loan on one stated date. Interest accrues and fees apply, so it differs from the statement balance. Example: $250,000 balance, plus $1,050 interest, plus a $150 late fee, equals $251,200. On a $600,000 sale, the statement balance overstates your net by $1,200.

Q: Does a divorce decree remove my name from the mortgage?

Do not count on it. Your loan papers and your lender control who stays on the loan. Ask the lender what takes a name off. The divorce agreement settles only who pays between you and your spouse. Family Law section 8-208(c) lets the court order either party to pay. Your attorney explains how your agreement treats the loan.

Do you need a divorce attorney?

You should have your own. I am a real estate agent. I do not give legal advice, and I do not work for one spouse against the other.

I am not affiliated with any law firm. I do not recommend one attorney over another. Your spouse needs their own attorney, not yours.

If you need to find one, start with these bar association resources:

Maryland State Bar Association, For the Public (points you to your county bar association)
Bar Association of Montgomery County, Maryland, Lawyer Referral Service

Links open in a new tab.

What an attorney handles	What I handle
Who gets the house and the money	The value of the house
The marital settlement agreement	The net sheet
Court orders that affect the sale	Listing, showings, offers, and closing
Custody, support, and everything outside real estate	A written record of every showing and decision

General information only. Not legal, tax, or financial advice. The referral services are independent of me. I do not guarantee any attorney's work or results.

About the Author

Marc Cormier