When a couple divorces it is important for all parties to understand the options and the consequences of what to do with joint property.
 
Generally the options are, one of you buys the other out or the property is sold and proceeds are divided.  In the first instance you will need to speak to your mortgage broker to work out what your borrowing capacity is.  The second instance is all about logistics.
 
Sometimes if legal people are involved they will advise you to stop paying the repayments on the loan.  From the banks point of view this bad, irrespective of the circumstances.  Banks do have provisions for what they call “hardship”: for instance when you lose a job and can’t make the repayments.  They do not have provisions for people who just stop paying because they are advised to by a legal person.
 
When you buy a property with your spouse the contract you sign with the bank states that all parties are “Joint and Severally Liable”.  Practically this term means that you are 100% responsible for the loan and so is the other person on the mortgage.  Both of you are 100% responsible.  Simple.
 
But this also means if one of you can’t or won’t pay your share, the bank expects other person to pay for all of it.  Following this through, if a default happens on your loan because of the other person’s actions you still get the default.  Not fair, but that is the reality of the contract you sign.  
 
Try to be clear headed and take all the facts into account.
 

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