DIVORCE AND REFINANCING THE HOUSE MORTGAGE
DIVORCE AND REFINANCING THE HOUSE MORTGAGE

Today, a divorce client in my Nashville office told me she wants to keep the marital residence and asked me if she should have the mortgage refinanced into her name only.  My answer was... it depends on a few things:

1.  Is the mortgage currently jointly titled with your spouse?

2.  Do you qualify to have the mortgage refinanced into your name?  To qualify, you will need three years of earning history.  Do you have that?  Is your earned income sufficient to qualify?  If you do not have three years of earning history or, your income is not sufficient, do you have a  family member who could co-sign?

3. Is your spouse able to qualify for a mortgage for a new residence without the martial house being refinanced in your name?

4.  What is your current monthly mortgage amount vs. the potential new payment (which would include the equty buy out of your husband)?

While the client's question was straight forward, the financial details of her case and every case can be complex.  Thorough answers to client questions often times require a conversation rather than one or two word answer. 

If you are considering divorce, carefully consider all of the financial ramifications of settlement options.  Find and work with professionals who are well versed in the financial and tax issues unique to divorce to ensure you make fuly informaed smart choices.