Mortgage Payments and Divorce in Colorado

If both spouses signed the mortgage, both stay responsible to the lender until the loan is paid off or refinanced. That is true no matter who lives in the house or what the decree says. A missed payment can damage both spouses’ credit.

Here is how mortgage payments work while the case is pending, the options for the home, and how to protect yourself if your former spouse keeps the house.

Mortgage Payments During a Divorce

In Colorado property division, the court can order one spouse to pay the mortgage. That order binds the spouses, but it does not change the loan contract, so the lender can still pursue both borrowers.

Taking your name off the deed does not take your name off the loan, either.¹ Until the mortgage is refinanced or paid, a late payment by the spouse in the home can appear on your credit report.

Possession of the Marital Home During Divorce

Neither spouse can sell or borrow against the marital home without the other’s consent or a court order once the case is filed and served. The automatic temporary injunction restrains both spouses from transferring, encumbering, or disposing of marital property.²

Either spouse can also ask the court for temporary orders while the case is pending, for example about who stays in the home and who pays the mortgage.³ Keep paying on time and keep proof of every payment.

How the mortgage is handled can affect your credit and your ability to buy again for years. Johnson Law Group offers a no-pressure consultation to compare your options for the home, so schedule a consultation before you agree to terms.

Options for the Marital House

Refinance in One Spouse’s Name

The spouse keeping the house refinances the loan in their own name and pays the other spouse their share of the equity. This is usually the cleanest option because it ends the other spouse’s liability.

Sell the House

The sale proceeds pay off the mortgage, and any remaining equity is divided. It is often the most practical choice when neither spouse can afford the home alone.

Keep the Mortgage As-Is for a Period

Some spouses keep the loan in both names for a set time, for example until a child finishes school. This leaves both spouses exposed, so the decree should set a deadline to sell or refinance and require proof of payment.

Pay Off the Mortgage

If there is enough in other assets, one spouse may use their share to pay off the loan. That removes the shared risk but changes how the rest of the property is divided.

Frequently Asked Questions

What if my spouse stops paying the mortgage?

Pay it if you can to protect your credit, document every payment, and tell your attorney right away. The issue can then be raised through temporary orders or in the final division.

Talk With a Colorado Divorce Attorney

The mortgage is often the largest debt in a divorce, and the safest plan ends shared liability as soon as it can. Johnson Law Group is here to help.

The attorneys at Johnson Law Group help spouses resolve the marital home and mortgage and will give you a clear read on the options that fit your finances. Schedule a free consultation through our Colorado offices, and we will serve as your North Star from here.

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