What Should Couples Know When It Comes to a Mortgage?
Think about this scenario for just a minute. You have been together with your better half for a number of years and are looking to purchase a home. So you get a mortgage that suits the both of you. Three years later, things go terribly wrong. The relationship falls apart and you are no longr on speaking terms.

What happens to your house? What happens to your mortgage?
It is no secret that most unmarried couples purchasing a house together tend to do so blindly, without doing all that much considering when it comes to long-term consequences. When these couples do split, the very mortgage issues that should have been worked out in the beginning fester and, in the end, put any end to the possibility of a clean and amicable separation.

What are the Issues Couples Should Consider When Purchasing a Mortgage?
For starters, couples must decide in the very beginning if the house must be sold in the event that the relationship doesn't work out. If both partners end up deciding that a split means the house will be put on sale, then the only thing left to figure out is how both partners will go about dividing the proceeds.

Obviously, how much each partner is entitled to will depend largely on what each partner has invested in the initial mortgage. If one partner has paid the entire down payment of the mortgage, it goes without saying that they will be entitled to a larger share of the proceeds. The same goes for the person who is bearing the brunt of the expenses. One possible approach is to divide the sale's proceeds according to individual contributions to the mortgage and equity of the house.

In the cases where one partner decided to stay in the house, dealing with the mortgage gets a little more tricky. Because there is no sale price, the partners must agree on an appraisal procedure. Other problems are bound to arise if the person who decides to remain in the house doesn't have the money the person who is inevitably forced to leave.

However, most problems involve the departing partner's willingness to continue contributing to the first mortgage. Given that the incumbent has agreed to assume responsibility for the mortgage, the other partner may feel as though he/she is now off the hook. Remember: anyone liable to their old mortgage will definitely have a hard time getting a new mortgage.

So How Can Couples Ensure Their Mortgage Doesn't Come between Them?
In most cases, given that most couples can not foresee a breakup and who will stay and who will go, it is advisable that both agree on a pre-discussed arrangement. For example, the remaining partner could be granted 12 to 15 months to make the settlement payment and remove the departing partner from the mortgage note. If this cannot be agree upon, the the house should be sold and the mortgage paid off.