Understanding Maryland SB 689: I Am Getting Divorced, How Will I Keep My House?

 Posted on July 07, 2025 in Divorce

When getting divorced, one of the most difficult questions for anyone is: How will I keep my house? One should start by determining if one spouse can purchase the interest of the other spouse and remove that spouse from any liability on the house. That second piece often leads to a higher interest rate and higher monthly payment for the spouse keeping the home. And if the rate and/or payment are too high, the home may have to be sold incident to a divorce, which may not be the best thing for the family, spouses, or children.

But a new Maryland law may change that. The law makes it much easier for a divorcing spouse to keep their home by requiring the spouse to assume the existing loan. This would allow them to keep the current payment and the current rate in place.

In April 2025, the Governor signed SB 689 / HB 1018 requiring Maryland banking institutions, credit unions, mortgage lenders, mortgage lending businesses, and mortgage loan originators to include a provision in conventional home mortgage loans authorizing another borrower to purchase the property interest of a certain borrower and assume the existing mortgage in connection with a decree of absolute divorce if the lending entity determines that the assuming borrower qualifies for the loan.

While there will still be multiple steps to the process, this requirement of an assumption (which many conventional loans do not have) will be a significant change to the divorce landscape. Additionally, while the law takes effect on October 1, it is retroactive and will apply to existing mortgages in effect prior to that date.

For more information or questions about your specific circumstance, please contact Monica Scherer and the Silverman Thompson family law team at mscherer@silvermanthompson.com or toll-free at 800-385-2243.