Mortgage after divorce

**kork13** · 03-31-2020, 02:31 PM

Originally posted by danstelter View Post

Hi all -

I got the house post-divorce. My ex and I have our names on the mortgage. Is there any reason to be concerned that her name remains on the mortgage? Any legal issues? The deed is in my name only. I'm in Wisconsin.

As with your other thread about the car, it depends on the divorce paperwork. But if you own it free and clear out of the divorce... With the deed solely in your name, the mortgage doesn't matter from your perspective. It just means that she's liable for your house, and if you were to stop paying the mortgage, the bank could come after her for it -- in effect, she's a co-signer without an ownership interest. However, the divorce paperwork may require that you refinance to get the mortgage out of her name -- if that's the case, you obviously want/need to do so.

However, once again, I'd recommend just doing the refi to get her out of your life completely. Besides, today's rates may be lower than your current mortgage's interest rate, so you could even save some money over time by doing the refinance.

**cypher1** · 03-31-2020, 02:42 PM

Originally posted by danstelter View Post

I got the house post-divorce. My ex and I have our names on the mortgage. Is there any reason to be concerned that her name remains on the mortgage? Any legal issues? The deed is in my name only. I'm in Wisconsin.

Would she have anything to gain with her name still on the mortgage? Just seems more of a liability for her end if you couldn't pay it.

**Thrif-t** · 03-31-2020, 02:51 PM

Is this an instance where you'd do a Quit Claim Deed?

**kork13** · 03-31-2020, 02:58 PM

Originally posted by Thrif-t View Post

Is this an instance where you'd do a Quit Claim Deed?

Not needed, since the deed is already in his name alone. Only way to get her name off the mortgage is with a refinance.

**Thrif-t** · 03-31-2020, 03:03 PM

Originally posted by kork13 View Post

Not needed, since the deed is already in his name alone. Only way to get her name off the mortgage is with a refinance.

With the circumstances as they are, you probably can refinance into a cheaper loan.

**disneysteve** · 03-31-2020, 03:19 PM

Originally posted by Thrif-t View Post

With the circumstances as they are, you probably can refinance into a cheaper loan.

Agreed. As long as your credit is decent and you can qualify, I'd say to refinance and get her off the loan. You're divorced. You need to separate your financial lives.

**Jluke** · 03-31-2020, 03:23 PM

Genuine question: what did your divorce lawyer say?

**riverwed070707** · 04-01-2020, 05:28 AM

Agree with the others most divorce paperwork gives you 6 months or a year to refi out of the other spouses name. Biggest issue I see here is for her, if she decides to purchase another house, yours will be listed as a liability and she may not be able to qualify. I'd wait for a good rate and then refi if there is no urgent need to do so.

**myrdale** · 04-03-2020, 06:07 AM

Originally posted by riverwed070707 View Post

I'd wait for a good rate and then refi if there is no urgent need to do so.

I wouldn't wait. I would get the ball rolling today. Rates are about 4% which is excellent compared to the 6.5% I had in 2006.

**riverwed070707** · 04-05-2020, 09:05 AM

Originally posted by myrdale View Post

I wouldn't wait. I would get the ball rolling today. Rates are about 4% which is excellent compared to the 6.5% I had in 2006.

Perspective I guess. I've purchased 5 houses since 2008 and none of them are mortgaged over 4%. I certainly wouldn't refi at a higher rate unless my decree specified I had to within a certain timeframe. There's no risk to the OP here if the deed is in his name only

Mortgage after divorce