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Divorce law and mortgages

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 07. April 2022

Looking to speak to mortgage brokers about the changes to divorce law and whether it has any ramifications for mortgage market. 

The change has end for couples separating to blame one party to secure a quick divorce. Previously, if a couple wanted a swift divorce then one had to accuse their partner of desertion, adultery or unreasonable behaviour. 

  1. Will the launch of a ‘no-fault’ divorce impact the mortgage market? If so, how? 
  2. Has there been an increase in divorce-related mortgage enquiries? Why is that and is it a long-term trend?
  3. What are the challenges around divorce and mortgages currently?
  4. What advice would you give to clients going through a divorce?

1 responses from the Newspage community

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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
There is no real reason why the advent of the "no fault" divorce would impact the mortgage market; the issues around the property and mortgage really remain unchanged and essentially boil down to can one party afford (by the lenders definition) to raise sufficient money to buy the other party out? In a lot of cases the answer is simply "no" which leaves many divorced couples still financially connected by a joint mortgage debt. Whilst they may not be arguing about who's fault the marriage breakdown was, they may yet be arguing about the money; especially if one wants to sell the property and other refuses.