If you and your spouse are getting divorced, your ex may want to stay in the home. This generally triggers a refinancing of the loan. However, they may discover that they can’t get the proper mortgage on a single income. They may then ask you if you will agree to stay on the mortgage with them.
Their argument is that they can afford to make the payments, but they just won’t qualify for a new loan. If you don’t change the loan, then they can stay in the house. They promise that they will continue to make the payments after you move out.
There are rare situations in which people do this, but it is usually advisable not to stay on a mortgage with your ex.
You are still liable if they don’t pay
The problem is that they may have the intention of paying that mortgage off every month, but you never know if they’re actually going to do it. If they stop paying and they are the only one named on the loan, then they would just face foreclosure.
But if they stopped paying and you are also named on the loan, then you are still liable. This could be 10 or 15 years after your divorce. As long as your name is on that paperwork, you have to make the payments that they fail to make. Your credit score is still going to be impacted by those missed payments. That’s why, even if you don’t care about keeping the actual house and you’re happy to let your ex live there, you should always ask them to get their own mortgage to do so.
If it feels like your divorce is becoming complicated, it can help to take a close look at all of the options that you have.