Navigating In-Law Relationships Before, During, and After Divorce: A Maryland Family Law Perspective
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When couples in Maryland divorce, one of the most pressing financial questions is: What happens to the family home? For many, the answer has traditionally been tied to refinancing the mortgage, often at a much higher interest rate than the original loan. That added cost can create real stress in settlement negotiations, sometimes forcing the sale of the home when one spouse might otherwise want (and be able) to keep it.
Beginning October 1, 2025, a new Maryland law changes that landscape. The law requires lenders to allow one spouse, following a final divorce decree, to assume an existing conventional mortgage if they otherwise qualify. This new option has the potential to save divorcing families thousands of dollars and give them greater flexibility in reaching fair and workable settlements.
Why This Law Matters
For many families, the mortgage on their home carries an interest rate locked in during the historically low-rate years. In recent times, refinancing often means jumping from a 3% or 4% mortgage up to 6% or higher. That difference can translate into hundreds or even thousands of dollars more each month.
Until now, a spouse who wanted to keep the marital home after divorce typically had only two choices:
- Refinance the mortgage into their own name at current, higher rates.
- Sell the home, divide the proceeds, and look for new housing, often at a much greater cost.
The new law provides a new path: if one spouse can qualify on their own (based on credit, income, and lender requirements), they can assume the existing loan and keep the lower rate intact.
Practical Benefits for Divorcing Spouses
- Lower Monthly Payments: By assuming the existing mortgage, the spouse keeping the home avoids the financial shock of higher payments that come with refinancing.
- Simpler Negotiations: Settlement discussions may become more straightforward when both parties know that the house doesn’t have to be sold or refinanced at unfavorable rates.
- Increased Stability for Children: Keeping the home often means children can remain in the same schools and neighborhoods, minimizing disruption during an already difficult transition.
- More Equitable Settlements: With one spouse able to assume the mortgage, other assets can be divided more flexibly, leading to creative and practical solutions.
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Baumohl Hamburg: Trusted Family Law Representation in Maryland
Legal Considerations
From a family law perspective, this change can be a game-changer. Courts and attorneys have long struggled with cases where one spouse wants to keep the home but can’t afford to refinance. With this new option:
- Judges, attorneys and mediators will have an additional tool to encourage resolution.
- Maryland family law attorneys will need to carefully evaluate whether their clients meet the qualifications for loan assumption.
- Spouses should understand that while the mortgage may stay at its favorable rate, other issues, such as removing the non-resident spouse from liability or ensuring proper title transfer still require careful handling.
How Our Firm Helps Clients Navigate Mortgage Issues in Divorce
At Baumohl Hamburg LLC, we know that the family home is more than just a financial asset; it’s a place of security, history, and stability. That’s why we work closely with mortgage professionals experienced in divorce situations. Together, we guide our clients through:
- Assessing whether they may qualify to assume an existing loan.
- Understanding the impact of mortgage options on support and property division.
- Structuring settlements that help protect long-term financial security.
By collaborating with both legal and financial experts, we ensure our clients are not blindsided by the hidden costs or missed opportunities that can come with divorce-related real estate decisions.
Looking Ahead
With the new Maryland law taking effect in October 2025, now is the time for families and practitioners to begin planning. If you are considering divorce or already involved in the process it’s important to factor this change into your decisions.
Not every lender or loan type will qualify, and not every spouse will meet the requirements to assume the loan. But for many, this law may provide a critical path to keeping their home and preserving hard-earned financial stability.
If you are facing divorce in Maryland and are concerned about your mortgage, the attorneys at Baumohl Hamburg LLC can help. We combine decades of family law experience with trusted partnerships in the mortgage field to give you a clear picture of your options.
Contact us today to schedule a consultation and learn how this new law might impact your case and how we can help you achieve the best legal outcome for you.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. It is always recommended to consult with a qualified attorney for personalized guidance and representation in legal matters.
About the Author
Harry A. Baumohl, Esq., a founder of Baumohl Hamburg, LLC, stands among Maryland's elite family law practitioners, bringing: Over Four Decades of Proven Excellence; Established track record in complex family law matters; Strategic location serving Baltimore County and surrounding jurisdictions.
Specialized Expertise in High-Stakes Family Law Cases
- Complex divorce litigation for high-net-worth and high asset individuals and families with sophisticated asset division and financial untangling.
- High-conflict custody and parenting disputes.
- Prenuptial Agreements, Preventive Planning, Mediation and Collaborative Law solutions.
Distinctive Approach to Client Representation
- Results-driven methodology backed by decades of experience and success.
- Strategic thinking combined with emotional intelligence mixed with calm, measured guidance during turbulent times.
- Proactive communication and responsive client service.
Geographic Reach
- Primary office in Pikesville, Baltimore County
- Active practice throughout: Baltimore County; Baltimore City; Carroll County; Harford County; Howard County & Anne Arundel County.
Ready to benefit from Harry's unique blend of experience and strategic thinking?
- For Clients:Visit our website at BahaLaw.com. And for direct access feel free to schedule a confidential consultation to discuss your family law matters. Direct access to seasoned counsel who understands the complexities of Maryland family law. Harry@BahaLaw.com.
- For Professionals: Our firm welcomes strategic partnerships with attorneys and other professionals seeking experienced Maryland family law counsel for their clients. We offer comprehensive case collaboration and maintain the highest standards of professional service. For referral inquiries: Harry@BahaLaw.com
