With approximately 17,000 divorces registered annually by the INE (National Institute of Statistics), managing the mortgage is one of the most complex bureaucratic processes for former couples, requiring quick, formalised decisions to avoid future financial responsibility issues or obstacles to obtaining new loans.

Property’s fate

The first major decision concerns the property's fate, with an immediate sale the most common solution when the intention is to settle the loan and divide any capital gains.

If one of the spouses decides to keep the house, the need arises to proceed with the division of assets and the payment of compensation (financial compensation to the spouse who relinquishes their share), an amount that can even be financed by the bank, provided that the remaining owner has the financial capacity to assume this additional burden.

Different solutions

However, changing the property's ownership does not automatically resolve the mortgage issue. It is crucial to request the release of one of the loan holders from the loan, a process not guaranteed by the bank and that depends on an analysis of the debt-to-income ratio and the income of the remaining loan holder.

Ignoring this step can have serious consequences: the person leaving the home remains legally responsible in the event of default and will have greater difficulty obtaining new loans, while the person who remains with the home may need the former partner's signature if they decide to sell the property in the future.

Changing in the bank

As an alternative to strengthening guarantees with the bank, the couple can agree to replace the departing account holder with a new person, such as a new spouse, provided that the financial viability of the new partner is approved.

Regardless of the chosen path, UCI Portugal emphasises that the agreement between the parties should be formalised as soon as possible, to ensure that the individual freedom gained is not compromised by financial obligations arising from a terminated relationship.