The lender is not part of the divorce
A mortgage is a contract between borrowers and a lender. A settlement agreement is a contract between two people. One does not automatically rewrite the other.
That means both borrowers can remain responsible for the loan after the divorce is final, even if only one lives in the home and only one has agreed to pay.
Why that matters in practice
Continued liability can affect credit if payments are late, and it can affect the other person's ability to qualify for their own housing, because the obligation may still be counted.
- Payment history typically reports for both borrowers
- The obligation may reduce future borrowing capacity
- Remedies after the fact are usually slower and more expensive