What Happens to the Mortgage in a Divorce in Michigan?
Understand Your Mortgage Liability After Divorce—and How to Protect Your Credit and Equity in Michigan
The divorce is final. You’ve divided the assets, signed the paperwork, and maybe even moved on emotionally. But then that mortgage statement shows up—with both names still on it.
Suddenly, it hits you: you're still financially connected to your ex.
For many Michigan homeowners, this is one of the most confusing and stressful parts of the divorce process. You assume the court order handled everything. You assume you're no longer responsible for the home. But the bank doesn’t see it that way.
And if your ex stops paying? You could be the one dealing with the fallout—missed payments, credit damage, even foreclosure.
This page will help you understand exactly what happens to a mortgage during and after a divorce in Michigan. We’ll break down who’s legally responsible, how to protect yourself, and what your real options are—because your financial future shouldn’t be left in your ex’s hands.
Understanding Mortgage Liability Post-Divorce
One of the biggest surprises for divorcing couples in Michigan is this: a divorce decree does not remove you from your mortgage.
Even if the court awards the house to your ex, if both your names are still on the mortgage loan, you are both legally responsible for making the payments. That’s because your mortgage is a binding contract with your lender—not with your ex-spouse. The lender wasn’t involved in your divorce and isn’t obligated to honor any part of the court’s decision.
So what does this mean in practice?
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If your ex misses a payment, your credit score can take a hit too.
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If the home goes into foreclosure, both of you could be named in the proceedings.
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If you apply for a loan or mortgage later, the original home loan could still count against your debt load.
This situation can persist for years after a divorce unless proactive steps—like refinancing or selling the home—are taken to formally remove your name from the mortgage.
For a clear explanation of your rights and obligations, visit Michigan Legal Help – Real Estate and Divorce, a trusted nonprofit legal resource for Michigan residents. Understanding the legal distinction between your divorce agreement and your mortgage contract is the first step in protecting your finances.
Options for Managing the Mortgage
In a Michigan divorce, the home is often one of the most valuable—and complicated—assets to deal with. If there's still a mortgage on the property, you and your ex-spouse will need to decide how to handle it. There are three primary paths most couples take:
1. One Spouse Keeps the Home and Refinances the Mortgage
This is a common option when one person wants to stay in the home. The spouse keeping the property agrees to refinance the loan solely in their name, effectively removing the other from financial liability.
However, the spouse taking over the loan must qualify for refinancing based on their own income, credit, and debt-to-income ratio. If they can’t, the lender won’t approve the change.
2. Sell the Home and Pay Off the Mortgage
In many divorces, the house is sold, and the proceeds are used to pay off the existing mortgage. Any remaining equity is then split according to the divorce settlement. This is often the cleanest way to separate financially, especially if neither party can afford the house alone.
3. Both Spouses Remain on the Mortgage (High Risk)
Some couples agree to keep both names on the loan temporarily—either to delay a sale or because refinancing isn’t an option. But this can be risky.
If your ex misses a payment, your credit will still be impacted. And if the home is foreclosed on, you could both face legal and financial consequences—even if you haven’t lived there in years.
For more information on dividing property and debt during divorce, visit Michigan Legal Help – Divorce Basics. It outlines what the court can and cannot do—and what you must take into your own hands to protect your future.
Consequences of Non-Payment
Let’s say your divorce judgment says your ex is responsible for the mortgage—and they stop paying.
Now what?
If your name is still on the loan, you’re still legally on the hook, regardless of what your divorce decree says. This is one of the most common—and financially devastating—surprises for people after divorce in Michigan.
Here’s what can happen:
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Missed payments hurt your credit. Even one late payment can lower your credit score by dozens of points, and it stays on your report for years.
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You can be named in foreclosure proceedings. If the loan goes into default, the lender doesn’t care who was “supposed” to pay.
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You could be sued or sent to collections. Just because you’re not living there doesn’t mean the debt disappears.
These outcomes are especially painful because they often come out of nowhere. Many people assume the divorce decree protects them—but legally, it doesn’t override your agreement with the mortgage lender.
For an overview of how mortgage debt and divorce interact—and how to safeguard your credit—see FindLaw – Credit and Divorce, a reputable public legal resource.
The key takeaway: as long as your name is on the loan, your credit and finances are at risk. That’s why monitoring the mortgage account and pursuing options like refinancing or selling are so important.
Gloria B. - Clinton Township, Michigan
“Thank you for contacting me. I didn’t know what I was going to do with this house"
Refinancing the Mortgage
Refinancing is often the cleanest way to remove one spouse from a mortgage after divorce in Michigan—but it comes with challenges.
If the divorce agreement says one person will keep the home, the only way to legally remove the other spouse from the loan is for the staying spouse to refinance the mortgage in their name alone. This creates a brand-new loan, pays off the old one, and ends the joint financial liability.
When Is Refinancing Necessary?
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If one spouse keeps the house and the other wants off the loan
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If the divorce decree assigns responsibility but both names are still on the mortgage
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If the person staying in the home needs a lower monthly payment or cash out equity
Refinancing Requirements
Lenders typically require the following for a refinance:
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Adequate credit score
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Stable income and employment
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Acceptable debt-to-income ratio
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Enough equity in the home
If the person keeping the home doesn’t meet these requirements on their own, refinancing may not be an option—at least not right away.
What If Refinancing Isn’t Possible?
If you or your ex can’t qualify to refinance:
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Consider a temporary co-ownership agreement with legal safeguards
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Set a timeline in the divorce agreement for when refinancing must occur
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Explore selling the home instead of remaining financially entangled
For more insights into the risks of falling behind on a mortgage after divorce, see Dennis Buys Houses – What Happens If I Get Behind on My Mortgage in Michigan.
Refinancing isn’t just a financial formality—it’s a critical legal step toward closing the chapter and protecting your credit long-term.
The Role of Quitclaim Deeds
One of the most misunderstood tools in divorce property division is the quitclaim deed—and what it can and cannot do.
In a Michigan divorce, a quitclaim deed is often used to transfer ownership rights from one spouse to another. For example, if your ex is awarded the house, you might sign a quitclaim deed to give up your legal interest in the property.
But here’s the key point:
A quitclaim deed does not remove you from the mortgage.
Ownership vs. Liability
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The deed transfers your name off the property title.
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The mortgage remains a separate contract that still holds both spouses legally responsible unless it's paid off or refinanced.
So even if you've signed a quitclaim deed, if your name is still on the mortgage, you’re still on the hook for the loan. If your ex misses payments or the home goes into foreclosure, your credit and finances are still at risk.
The Only Real Solutions:
To fully remove yourself from liability, one of the following must happen:
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Refinance the mortgage into the remaining spouse’s name only
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Sell the home and pay off the loan completely
According to Michigan Legal Help – Quitclaim Deeds and Divorce, it’s common to confuse deed transfers with mortgage release—but doing so can lead to serious financial consequences.
If you're giving up the home, always verify that your name has also been removed from the mortgage—not just the title.
Enforcing Divorce Decrees
Many people believe that if the divorce decree says their ex is responsible for the mortgage, they’re automatically protected. Unfortunately, that’s not how it works—especially when it comes to your lender.
A divorce decree is a court order between you and your ex, not between you and your mortgage company. Even if the judgment clearly assigns the home and loan payments to your former spouse, your lender still holds you legally responsible if your name remains on the loan.
What Can You Do If Your Ex Stops Paying?
If your ex fails to make payments as ordered, your first instinct might be to call the lender—but they’ll tell you the same thing: both names are still on the loan, so they can hold either of you accountable.
To enforce the terms of your divorce judgment, you would need to:
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Go back to court and ask a judge to enforce the agreement
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Potentially request contempt charges or a financial judgment
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Spend additional time and legal fees trying to recover damages
Even if the court sides with you, this process does not erase the damage to your credit or stop collection efforts from the lender in the meantime.
For guidance on enforcing divorce-related property agreements, see Michigan Legal Help – Post-Divorce Judgment Issues, which outlines your rights and options for legal follow-up after the decree is issued.
The safest route? Get your name off the mortgage entirely through refinance or sale. That’s the only way to fully protect yourself from the financial risks your ex may create.
Protecting Your Financial Future
Even after a divorce, if your name is still on the mortgage, your financial future is tied to what happens with that loan. That’s why taking active steps to protect yourself is essential—not just during the divorce, but in the months and years after.
Here’s how to reduce your risk and safeguard your credit:
1. Monitor the Mortgage—Don’t Assume It’s Being Paid
If your name remains on the loan, make sure you know the status of the account.
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Set up online access to the mortgage account
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Request monthly statements be sent to you
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Use credit monitoring to catch missed payments early
2. Don’t Rely Solely on the Divorce Decree
Your divorce agreement may assign responsibility, but it doesn’t change your legal obligation to the lender. Until your name is removed through refinancing or sale, you’re still on the hook.
3. Consult Professionals Early
A Michigan-based divorce attorney or financial advisor can help you:
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Review your divorce agreement for loopholes
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Draft or enforce timelines for refinancing
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Understand your options if your ex isn’t following through
4. Know When It’s Time to Exit
If you’re stuck on the mortgage and can’t resolve the situation through refinancing, it may be time to sell the house and move on.
One option is to work with a trusted homebuyer like Dennis Buys Houses who can offer a fast, no-hassle solution.
5. Learn from Others’ Mistakes
Situations involving divorce and joint mortgages can drag on for years—hurting your credit, limiting your borrowing power, and creating unnecessary legal headaches.
If you're also facing financial pressure, you may find this internal guide helpful: How to Sell a House with Late Mortgage Payments in Michigan
Stay proactive, stay informed, and don’t wait until missed payments show up on your credit report.
"When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
Michelle L. - Michigan
Alternatives When Refinancing or Selling Isn’t Possible
Not every couple can refinance after a divorce—and selling the house immediately isn’t always an option either. Maybe there’s not enough equity. Maybe one spouse refuses to move. Or maybe the market isn’t in your favor. So what can you do if you’re stuck with a shared mortgage?
Here are some realistic alternatives when neither refinancing nor listing the home right away will work:
1. Create a Legal Co-Ownership Agreement
You and your ex can continue to co-own the home, but this should never be done informally.
Work with your attorneys to create a written agreement that covers:
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Who will live in the home
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Who is responsible for the mortgage, taxes, and upkeep
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How and when the home will eventually be sold or refinanced
This helps protect both parties and outlines clear expectations.
2. Consider a “Nesting” Arrangement
In some divorces—especially with children—couples agree to let the kids stay in the home while the parents rotate in and out. This is called "nesting."
It’s a temporary arrangement, and it requires strong communication and legal guardrails to prevent conflict and protect finances.
3. Sell to an Investor for a Clean Break
If you can’t refinance and need out fast, consider selling directly to a real estate investor. This can offer:
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A quick, cash sale—often in days
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No need for repairs or showings
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A way to end the mortgage obligation immediately
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The ability to walk away without waiting for the perfect buyer
To see if this is a fit, visit Dennis Buys Houses and explore your options for a private, flexible sale in Michigan.
When you're stuck, doing nothing is the most dangerous option. Co-ownership without clear terms can lead to missed payments, credit damage, and drawn-out legal disputes. If a clean solution is possible, it’s often the best way forward.
Frequently Asked Questions
Still have questions? You're not alone. Below are answers to some of the most common concerns about handling a mortgage during or after divorce in Michigan:
❓ What happens to the mortgage after a divorce?
The mortgage remains in place until it’s paid off, refinanced, or the home is sold. A divorce decree may assign responsibility, but both parties remain legally liable if both names are still on the loan.
❓ Can I remove my ex from the mortgage?
Only a refinance or a sale can remove someone from the mortgage. A quitclaim deed changes ownership—but not loan responsibility. The lender must approve any change to the loan agreement.
❓ What if my ex stops paying the mortgage?
If your name is still on the mortgage, you’re still responsible, even if your divorce decree says otherwise. Missed payments can damage your credit and lead to foreclosure. You may need to return to court to enforce the decree, but that won’t stop the lender from pursuing you in the meantime.
❓ Can I refinance the loan in my own name?
Yes, if you meet the lender’s requirements. You’ll need sufficient income, a qualifying credit score, and enough equity in the home. If you can’t qualify, you may need to delay or explore selling instead.
❓ Does signing a quitclaim deed remove me from the mortgage?
No. A quitclaim deed only removes your name from the property title, not the loan. Until the mortgage is refinanced or paid off, you’re still legally responsible.
For more legal guidance on property and mortgage issues during divorce, visit Michigan Legal Help – Real Estate and Divorce, a nonprofit resource offering free legal education for Michigan residents.
Don’t Let the Mortgage Trap You After Divorce
If your name is still on the mortgage, your financial future may still be tied to your ex—whether you realize it or not. One missed payment could damage your credit. A foreclosure could follow you for years. And just because your divorce judgment assigned responsibility doesn’t mean the lender agrees.
Waiting it out isn’t a strategy—it’s a risk.
Whether you’re exploring your options, stuck in a home you no longer want, or worried about what happens next, you don’t have to figure it out alone.
At Dennis Buys Houses, we help people across Michigan navigate complicated housing situations—including divorce-related sales. We’ll listen to your situation, explain your options, and if it makes sense, offer a fast, private, no-hassle way out.
You don’t have to stay tied to a home—or a mortgage—that’s no longer part of your future. Let’s find the right next step together.
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If you're dealing with a tough family situation and don’t know where to turn, we’re here to help.
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