What happens if you can't refinance after divorce?

Asked by: Stephan Thiel  |  Last update: September 1, 2025
Score: 4.9/5 (44 votes)

Both spouses remain liable to the lender. In addition to the risk of the ex-spouse defaulting on the loan, the liability for that loan will remain on the other spouse's credit report making it difficult if not impossible to obtain financing for another home.

Can a bank force you to refinance after a divorce?

The judge can order you to make reasonable efforts to refinance the loan. He can't actually require it, because he can't force a bank to give you the loan. But, look at the divorce decree to see what it says. If it only says that you have to make payments, you don't have to refinance it, either.

Can I afford to keep the house after divorce?

It's essential to realistically assess whether you can comfortably afford the home on your own. This includes mortgage payments, property taxes, and ongoing maintenance costs. Additionally, if you wish to retain the home, be aware you may need to refinance the mortgage to remove the other spouse's name.

What happens if my ex doesn't refinance after divorce?

You would need to file a motion before the court which issued the original decree or order to force your ex to complete the refinance or be held in contempt of court. In the event he is held in contempt the court can assess sanctions including your costs and attorney fees, as well as other damages.

How to start over financially after divorce?

Financial steps once your divorce is final
  1. Establish separate accounts. At the top of your list should be closing any inactive joint bank and investment accounts. ...
  2. Determine your post-divorce income. ...
  3. Set your new household budget. ...
  4. Start your own retirement plan. ...
  5. Decide what to do with the house.

What Happens If I Can't Refinance After Divorce? - CountyOffice.org

22 related questions found

Who suffers more financially after divorce?

How does divorce financially affect women? Generally, women suffer more financially than do men from divorce.

How do I start over after a divorce with no money?

How to Start Over After Divorce With No Money
  1. First, Build a support system.
  2. Gain clarity on your financial situation.
  3. Set up bank accounts in your own name.
  4. Enforce a Divorce Settlement.
  5. Account for child or spousal support.
  6. Recover from Financial Abuse.
  7. Strengthen your credit score and work down debt balances.

How can I keep my house in divorce without refinancing?

If you want to keep the house and don't have enough equity to do a cash-out refinance or the money to pay your ex their share, the solution might be a home equity line of credit (HELOC) or home equity loan.

How can I force my ex to refinance?

Answer: If your ex-spouse refuses to refinance the mortgage, you may have several legal options available to you. You can file a lawsuit, file a motion with the court, or try to negotiate an agreement with your ex-spouse.

How can I get my ex wife off my mortgage without refinancing?

5 ways to remove someone from a mortgage without refinancing
  1. Mortgage loan assumption: Transfer the loan to your name. ...
  2. Mortgage loan modification: Change the terms of you loan. ...
  3. Selling the house: Fresh start for both parties. ...
  4. Paying off the mortgage: Eliminating the debt.

Who loses the most in a divorce?

Both ex-spouses take a loss, but typically, men suffer a larger hit to their standard of living than women — between 10 and 40% — due to alimony and child support responsibilities, the need for a separate place to live, an extra set of household furniture and other expenses.

Why you shouldn't leave the house during a divorce?

The date a divorcing couple separates can significantly affect the valuation of marital assets and debts during the property division phase. By staying in the house until you iron out all property, financial, and custody issues, you can prevent more elaborate legal disputes from occurring later.

What is a silent divorce?

What is Silent Divorce? In a silent divorce, the couple is legally married, but they have lost the emotional bond they once had. Although they live together and appear to have a regular marriage, they live separate lives. The couple typically lives in the same house but has limited to no interaction.

What disqualifies a refinance?

What disqualifies me from refinancing? Homeowners are commonly disqualified from refinancing because they have too much debt. If your DTI is above your lender's maximum allowed percentage, you may not qualify to refinance your home. A low credit score is also a common hindrance.

What if a spouse stops paying a mortgage during divorce?

If Your Spouse Isn't Paying the Mortgage

The bottom line is that your soon-to-be ex remains just as financially responsible for your shared mortgage as he or she was before (even if only you are living there while your divorce is pending).

Can bank accounts be frozen during divorce?

The court has the power to freeze your bank accounts and other marital assets when you're in the middle of a divorce. We're not just talking about the house, cars, and furniture. Marital assets can include insurance policies, bank accounts, inheritances, and more.

What happens if I can't refinance after a divorce?

If all else fails and you cannot refinance your house or your lender declines to release you of liability, the next best thing to do is to sell your home and split the proceeds with your ex-spouse.

Can I sue my ex for not paying the mortgage?

You can take legal action against them for breaching the agreement you both made or seek a court order to force the sale of the property. It's important to consult with a lawyer to understand your legal rights and options and to make the best decisions for your situation.

Can you be declined for a refinance?

The most common reason why refinance loan applications are denied is because the borrower has too much debt. Because lenders have to make a good-faith effort to ensure you can repay your loan, they typically have limits on what's called your debt-to-income (DTI) ratio.

Can you both stay on mortgage after divorce?

Yes, you can keep a joint mortgage after a divorce, but it requires both parties to be diligent in making payments and leaves both liable for any that are late or missing.

How much equity is my ex entitled to?

No, a person is not "automatically" entitled to half the equity in real estate just because they purchased the property with another person. The amount of each owner's fair share of the equity may need to be determined by a judge if the two people can't agree on the amounts.

Can you refuse an appraisal amount in a divorce?

Yes, you can refuse an appraisal in a divorce. This is especially true if you think it is inaccurate or unfair. But, refusing the appraisal amount may lead to more talks. These could be negotiation, mediation, or even a lawsuit to resolve the disagreement.

How to divorce when you can't afford to move out?

Negotiate with Your Spouse: If you and your spouse are on good terms, you can negotiate a settlement agreement that outlines the terms of your divorce. This can save you both time and money. Sell Assets: If you have assets, such as a home or car, you can sell them to generate funds for your divorce.

How hard is it to start over after divorce?

However, going through a divorce can be a very difficult and life changing experience. It may take time for a person to adjust and that amount of time is different for everyone. There are several ways a person can help themselves move on and start fresh.

How do I not lose half my money in a divorce?

Best Ways To Protect Your Money During Divorce
  1. Create an Asset Protection Trust. ...
  2. Legally Establish the Divorce. ...
  3. Open Accounts in Your Name Only. ...
  4. Identify All Your Assets. ...
  5. Get Copies of All Your Financial Statements. ...
  6. Freeze All Joint Bank Accounts. ...
  7. Make a Tax Preparation Plan. ...
  8. Know Your State Laws.