How Can You Buy a Partner Out After Separation?

Sorting out a joint mortgage after a separation can be a daunting thing to do. But there are plenty of options to consider, so you can decide what the best solution is for you.

The options for a joint mortgage during a separation

There are lots of different options, most of which will need the cooperation from your ex-partner. But if you’re in a position where that’s not possible, there are also options for that situation too. Here’s the main options:

Sell the property

This is the simplest way to deal with a joint mortgage after or during a separation. If you can sell the home, you can pay off the outstanding mortgage and split any profits between you. This is one of the options that will need cooperation from both sides because you’ll need to divide up the money.

If your home is in negative equity, you’ll need to divide up any debts that you have. Your mortgage provider or lender should be able to help you with this. 

Buy out your ex-partner

You could consider buying out your partner’s share in the mortgage. Or, they could buy your part of the mortgage. If this is an option you’d like to consider, you’ll need legal help. That’s because rather than just transferring money, you’ll need to make sure the transfer of the mortgage is done legally.

If either of you need additional funds to be able to buy the other one out, by remortgaging to release equity for example, a lender will want to know you can make the repayments on your own. Just like when you originally took out the mortgage, the lender will want to see proof you can afford the mortgage alone. 

Using a guarantor when buying out a partner’s share in the mortgage

If you’re thinking of buying your ex-partner out of the mortgage, or vice versa, a lender will want to know you can afford the full repayments on your own. Even if you can afford it, lenders can be nervous about a single-person mortgage sometimes. 

If you can’t afford the mortgage on your own, or the lender won’t accept you a single person, you can consider using a guarantor. A guarantor will agree to pay the mortgage if you can’t. This gives you and the lender peace of mind that the mortgage will definitely get paid. A guarantor can be anyone you trust. It could be a close friend or family member. 

Continue to share the mortgage at a reduced percentage 

This option is similar to buying out a partner. Either of you could decide to reduce the share (or stake) they have in the property. This means one partner buys out a portion of the other person’s share. But not all of it. Whoever reduces their share will still need to contribute to mortgage repayments, but it means they’ll still be able to claim money from the final sale of the house. This can be a way to reduce the impact of a separation on both people, and minimises the outgoings for both.

Pay off the mortgage

This means you agree to completely pay off the remainder of the mortgage, so you don’t have to have a financial link to each other. This isn’t an option open to everyone, because it usually means you’ll need to be able to have a lot of money saved. If you’ve nearly paid off your mortgage you could consider paying off the remaining balance. You could do this in a chunk, if your mortgage terms allow it. Or you can pay off the remaining instalments. This way, while you may both be out of pocket in the short term, you’ll be able to split and pocket the full value of the home once it’s been sold.

Keep paying your mortgage during your separation

After a separation, you’re still both legally obliged to continue to meet the mortgage repayments. Even if one of you has left the property. Before you decide on a new long-term solution, the monthly mortgage repayments you’re jointly responsible for will need to be paid.

Missing a payment can lead to problems. Because it’s a joint mortgage, any late or missed payments will show up on both of your credit reports. You’re financially linked to your ex-partner as long as you’re both on the mortgage, even if you reduce your share or move out. It’s the same with any joint accounts you share. 

If there’s any issues with paying your joint mortgage, talk to your mortgage provider as soon as you can. They should be able to help, and let you know your options. 

Obtaining Mesher and Martin orders

In England and Wales, there’s another option known as a Mesher or Martin order. This is an option open to you during a separation if you need legal help to decide the terms of what happens to the home after a separation or divorce. 

What’s the difference between a Mesher order and a Martin order?

The main difference between a Mesher and Martin order is whether or not children are involved. If they are, usually it’s a Mesher order that's used. If children aren't involved, it’s usually a Martin order. 

What is a Mesher order?

A Mesher order is a court order that postpones the sale of a home. It means the home can’t be sold until a date agreed on by the couple in the joint mortgage. Both names will remain on the mortgage until this date and means the house can’t be sold during this time.

A Mesher order is useful when a separation or divorce involves children because it minimises the disruption of their lives. It means they can stay in their home until they finish school or move out. 

You can either set a particular date in the future, or set a ‘trigger event’ that causes the Mesher order to end. Trigger event can be things like:

• The ex-partner enters a new relationship that is cohabiting

• The ex-partner remarries

• The youngest child turns 18 or finishes their secondary education

• The youngest child finishes higher education

Because the property remains in both partners’ names and the mortgage is still joint, both partners have to contribute towards the mortgage. And both partners split the money from the sale of the property when it’s sold. 

What is a Martin order?

A Martin order is similar to a Mesher order. It’s a court order that postpones the sale of a home. Both people in the joint mortgage agree that they don’t want to sell until a certain time or event happens. The difference is a Martin order doesn’t usually involve children. A Martin order is a court ordered agreement that means the house can’t be sold until a certain date, or if a ‘trigger event’ happens. 

Because children aren’t involved, the trigger events are different. A Martin order isn’t designed to keep the children in the same place and receive their education. In some cases, a Martin order may allow someone to live in the house for the rest of their life. 

Some trigger events for a Martin order include:

• The ex-partner moves out

• The ex-partner remarries

• The ex-partner passes away

What do matrimonial rights mean for a mortgage?

Matrimonial rights are statutory rights designed to protect people in a marriage in the event of divorce. If you separate or divorce, matrimonial rights protect your interest in the home you shared, but didn’t own. Matrimonial rights apply to people who have a civil partnership or marriage. 

In the UK, when a married couple co-habits in a home that one of them owns, that home is seen as a joint asset. This means that even if the mortgage isn’t taken out as a joint mortgage, and only one name is on the mortgage, the other person can’t be forced to leave the home during a separation.

If you’re in the situation where the mortgage is in one partner’s name, there are a number of things that can be done. If it’s in the other person’s name, and you’re concerned about your ex-partner selling the house, you can approach the land registry for a ‘Notice of Home Rights’. This will confirm, by matrimonial rights, that the property can’t be sold without your consent.

If the mortgage started after your marriage, you have a significant right to stay in the home if you want to. If the mortgage was started before your marriage, you will unfortunately have less. A claim usually expires if the divorce is finalised. 

If you and your ex-partner are struggling to agree on what to do with your home, you might need to take your mortgage disputes to a divorce court. Always get legal advice if this is the case because a financial expert can talk you through your options. 

What to do about your mortgage when you’re separating

Both mortgages and separations are complex. So it’s always a great idea to do your research, understand your options and speak to a professional as soon as you can so you can work out what’s best for you. 

Sometimes separation or divorce is expensive. Understanding your options and costs is essential so you know where any extra money will be needed. You’ll still need to pay your mortgage until you come to a new agreement, so planning ahead is key. 

Speak to your lender directly before any issues arise, particularly if you’re struggling to meet the mortgage repayments, to discuss the situation with them. They should be able to help with giving you information and options on your mortgage.

There are other options like mortgage payment holidays, which would be a temporary break in repaying your mortgage. In this case, you can use the equity you’ve built up, or use any money you’ve overpaid to pay the mortgage for a short period of time. Interest will still be incurred, but this is a great option if either of you can’t afford the mortgage. 

Get professional legal advice if you’re worried about the implications of an upcoming separation on your mortgage or property. There are free services that can offer advice like Citizens Advice if you’re concerned about legal fees.