Dividing property during a divorce is complicated enough—but when a mortgage is involved, the process becomes even more complex. Questions around liability, ownership, refinancing, and equitable division often require legal, financial, and real estate expertise. At Fraser Bond, we provide strategic support to help individuals and legal professionals navigate the mortgage and divorce property split with clarity, accuracy, and confidence.
When a home is mortgaged, both parties may remain legally liable for the loan—even if one plans to move out or surrender ownership. Key challenges include:
Determining who will stay or leave the property
Calculating equity and outstanding mortgage balance
Managing affordability and lender approval for refinancing
Reaching a legal agreement on future liabilities
Professional advice is essential to ensure fairness and financial protection for both parties.
This is often the cleanest option. The sale proceeds are used to:
Repay the outstanding mortgage
Divide the remaining equity according to the divorce agreement
Fraser Bond manages the entire sales process, including valuation, listing, negotiation, and coordination with solicitors and lenders.
If one party wishes to remain in the home, they may:
Refinance the mortgage in their sole name
Pay the other party’s share of equity as a lump sum or via legal offset
Assume full ownership and mortgage responsibility
We provide detailed equity calculations and work with mortgage advisors to assess viability.
In some cases—particularly where children are involved—both parties may:
Continue joint ownership under a trust or legal agreement
Agree to sell the property at a future date (e.g. once children reach adulthood)
Maintain joint mortgage responsibility until a triggering event occurs
This option requires clear documentation and expert coordination, which Fraser Bond can help facilitate.
Property Valuation – To assess equity and determine a fair split
Mortgage Affordability – Lenders will reassess income and liabilities before approving a refinance
Credit Implications – Missed payments by either party could affect both credit scores
Legal Agreements – All terms should be secured through a consent order or financial settlement
Fraser Bond works closely with clients, solicitors, mediators, and mortgage advisors to deliver:
Independent property valuations used in legal proceedings
Equity assessments for refinancing or buyout strategies
Sales support for properties being liquidated
Portfolio analysis for high-net-worth or investment-based divorces
Professional liaison with lenders and financial planners
We ensure that your property and mortgage division strategy is sound, fair, and aligned with your long-term goals.
Managing a mortgaged property during divorce is more than just a legal issue—it’s a real estate, financial, and emotional one. With Fraser Bond’s expert insight, you can make informed decisions, protect your interests, and move forward with confidence. Whether selling, refinancing, or restructuring ownership, we provide the guidance you need to resolve the property side of your divorce with clarity and care.
