When a couple decides to end their marriage, one of the major concerns is the division of joint assets, particularly their home. In Dubai, specific laws and regulations govern joint mortgages and how they are handled during a divorce. Understanding these rules can help both parties navigate this challenging process with clarity.

Joint Ownership vs. Sole Ownership

The first step is determining whether the property is held under joint ownership or solely owned by one spouse:

• Joint Ownership: Both parties are responsible for mortgage payments until the divorce is finalized.
• Sole Ownership: The spouse who owns the property bears full responsibility for the mortgage payments.

In either case, the mortgage must be addressed as part of the divorce settlement.

Options for Handling a Joint Mortgage After Divorce

1. Selling the Property

One common option is to sell the property and split the proceeds. This is often the best solution if:

• Neither party wishes to keep the property.
• Both parties cannot afford the mortgage independently.

2. Buying Out the Other Spouse

If one spouse wants to retain the property, they may need to buy out the other spouse's share. This process involves:

• Assessing the current market value of the home.
• Agreeing on a fair buyout amount.

3. One Spouse Keeping the Home

In some cases, one spouse may continue living in the home and making mortgage payments. This can provide stability, especially if children are involved. However:

• The non-residing spouse may still be liable for payments if their name is on the mortgage.
• Refinancing may be necessary to transfer the mortgage solely to the residing spouse.

Legal Implications of Joint Mortgages in Dubai

The divorce settlement will outline how the mortgage is handled:

• Shared Responsibility: Both parties may be required to continue payments until the mortgage is fully paid off.
• Single Responsibility: One party may be obligated to pay off the mortgage in full.

Consulting a mortgage advisor is crucial to understand the specific legal implications and determine the best course of action.

Dealing with Mortgage Arrears and Negative Equity

• Mortgage Arrears: Both parties remain liable until the arrears are cleared, regardless of who resides in the property.
• Negative Equity: If the property sells for less than the outstanding mortgage, both parties are responsible for the remaining balance.

Where to Find Professional Mortgage Advice

If you are navigating a divorce and a joint mortgage in Dubai, professional advice is invaluable. Contacting a mortgage advisor or a digital mortgage service like Holo can help you:

• Understand your mortgage options.
• Navigate the legal and financial complexities.
• Find the best mortgage rates tailored to your situation.