Divorce is never easy, especially when it involves a joint mortgage on a property in Dubai. Many expats who come to Dubai to start a new life may find themselves in this situation and wonder what their options are for a joint mortgage in Dubai, UAE is explained.
What are the Joint mortgage?
A joint mortgage is a type of home loan in which two or more people share ownership and responsibility for paying off the loan. Residents and non-residents of the UAE who want to buy a house together can get a shared mortgage.
What are the Divorce laws in Dubai?
➡️Dubai has a diverse population of expats from different countries and backgrounds.
➡️This means that there are different ways to approach a divorce, depending on your nationality, religion and where you got married.
➡️As a general rule, if you are a British citizen, you can divorce through the British courts, regardless of where you live or where you got married. However some law may apply in some cases, especially if your spouse is a UAE national or a Muslim.
➡️You will need to seek legal advice from a qualified solicitor who can guide you through the proper channels and procedures for your divorce.
What are the Joint mortgage options after a divorce?
✅If you have a joint mortgage on a property in Dubai, you will need to decide what to do with it after your divorce. You have two main options:- sell the property or refinance the mortgage.
✅Selling the property is the simplest option, as it allows you to pay off the remaining mortgage balance and split any equity between you and your ex-spouse. However, this may not be possible or desirable for various reasons, such as market conditions, emotional attachment or disagreement between the parties.
✅Refinancing the mortgage means that one of you takes over the full responsibility of the mortgage and becomes the sole owner of the property. The other party will need to sign a release form and transfer their share of the property to the remaining owner. This option may require additional fees and charges, such as valuation fees, transfer fees and arrangement fees.
✅You will need to consult with your mortgage lender and your solicitor to find out the best option for your situation. You can also compare different mortgage offers from various banks.
What are some Important suggestions?
Whatever option you choose, you need to remember that you are still liable for your joint mortgage until it is fully paid off or transferred to one name. This means that you need to keep up with your monthly repayments even after you separate, otherwise you could face legal consequences and damage your credit rating. You also need to communicate with your ex-spouse and try to reach an amicable agreement on how to deal with your joint mortgage. This will make the process easier and faster for both of you and avoid unnecessary disputes and delays.
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Finally, you need to take care of your emotional well being and seek support from your friends, family or professionals if you are going through a difficult time. Divorce can be stressful and painful, but it can also be an opportunity for a fresh start and a happier future and mortgage issues can be easily solved with Mortgagemarket which is your buddy for mortgage brokers in dubai advisory. If you have any suggestions or doubts than contact us for more information.