When a marriage ends, financial stability becomes one of the biggest concerns for many families. Housing is often at the center of that worry. The fear of losing a low mortgage rate—or being forced into a costly refinance—can make an already difficult transition feel even more overwhelming.
A new Maryland law offers meaningful relief. As of October 1, 2025, mortgage lenders must allow a spouse to assume the existing mortgage on a home in connection with an absolute divorce, as long as they qualify for the loan. This amendment to Maryland Code, Financial Institutions § 11-522 gives many spouses a clearer, more affordable path to remain in their homes without taking out a new mortgage at today’s higher rates.
Why This Matters for Families
Before this change, a spouse who wanted to keep the home—but couldn’t assume the mortgage—had only one option: refinancing into a brand-new loan. With current interest rates still elevated, that often made monthly payments significantly higher and, for some families, made staying in the home impossible.
This amendment helps divorcing spouses who qualify:
- Keep their existing interest rate and loan terms
- Avoid higher payments tied to current market conditions
- Buy out the other spouse’s interest without starting over with a new mortgage
- Maintain stability during an emotionally taxing period
How the New Assumption Law Works
The law now requires every conventional mortgage to include this option: if two people are on the mortgage, one can buy out the other and take over their share of the loan, as long as they qualify.
For the law to apply:
- The assumption must be directly connected to a decree of absolute divorce
- The spouse taking over the loan must meet the lender’s qualification standards
One key benefit: this law applies not only to mortgages issued after October 1, 2025, but also to existing loans, giving many families immediate access to this option.
We’re Here to Guide You
Divorce is challenging enough without the added fear of losing your home or taking on an unmanageable mortgage. This new Maryland law provides a practical, accessible option for spouses who want to maintain stability during a difficult transition.
If you’re unsure whether you qualify—or whether assuming the mortgage is the right choice for your situation—we’re here to help you navigate your next steps. Contact us at 301-298-8401 to schedule a consultation today.
