Refinance

Refinance

When Is A Mortgage Refinance Needed In A Divorce?

In some divorce cases, the martial home or other real property has a mortgage attached to it. As part of the divorce, either through settlement or trial, one spouse is receiving sole ownership of the property.

To get the title out of the other spouse’s name who is not getting the property, a Quit Claim Deed is almost always needed. However, to get the mortgage out of the other spouse’s name, a mortgage refinance is usually needed. In some cases, an assumption agreement might be possible where the spouse receiving the property has excellent credit. But in many cases, a refinance is the only option to remove the other spouse’s name from the mortgage.

To refinance the mortgage, the divorce decree and separation agreement is almost always needed. In the divorce decree and separation agreement, it should indicate which party is receiving sole ownership.

The party receiving the property then needs to find a lender who will provide a new loan in the receiving party’s name alone. It can be critically important for a party to meet with multiple lenders to ensure that (1) they are getting the best interest rate possible; and (2) ensure that refinance costs and closing fees are reasonable.

As part of the refinance process, a Quit Claim Deed is prepared, signed and followed along with the new mortgage paperwork. This ensures that the title is in the sole name of the receiving spouse. Additionally, the mortgage refinance ensure that the mortgage is in the sole name of the receiving spouse as well.

Ensuring that the refinance takes place can be critically important to the party who is not receiving the martial home or property. Otherwise, if the mortgage payments are not made, or not made on-time, the credit of the spouse who is not receiving the property can be negatively impacted. Where there is a default, a foreclosure might take place.

Divorce Lawyers Assisting With Property Division in Missouri, Illinois, Kansas and Oklahoma

If you are going through a divorce where there is property property division, you can contact Stange Law Firm, PC online or at 855-805-0595. We have offices in St. Louis, Kansas City, Columbia, Springfield, Wichita, Tulsa and beyond in the Midwest.

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Helpful Information Regarding Property and Debt Division From our Webpage

We also have pages on numerous other topics related to property and debt division from our webpage, including the pages below and on our menu:
High Asset Divorce
If you are considering divorce and have a high net worth, it's important that you have legal counsel in your corner. It is also vital that you have an attorney that is diligent on your behalf.
Divorce Financial Planning
If you will be going through a divorce, conducting divorce financial planning can be critical to ensuring that you can move on with your life on sound financial footing.
Commingling Assets
In many divorce, parties own some assets prior to marriage and then buy additional assets after marriage. Often, these assets can end up being mixed together (or commingled). If this has happened in your case, it is important to work a diligent lawyer.
Transmutation
In some cases, a party might own certain property or assets prior to marriage. After marriage, the assets might become re-titled in joint names, which can result in the assets being transmuted into marital property. Our lawyers can help you if this is what has happened in your case.
Complex Property Distribution
In many high asset divorces, property distribution can be complex and complicated. Our attorneys can help you with difficult property distribution.
The Marital Home
The martial home can often be one of the most prized marital assets in a divorce. The marital residence can also be important as it relates to stability for children in divorce. Our lawyers can assist if this is the case for you.
Real Estate Appraisers
When residential or commercial property is owned in a divorce, ensuring that this property is properly valuated by a real estate appraisal can be critical in many cases. Our lawyer can help ensure you are refered to a competent real estate appraisal.
Trusts
Many parties have either created trusts for their family, or stand to inherit funds through a trust outside of the probate court. In many cases, this can be an important issue in a divorce in which our lawyers can help.
Inheritance
In many divorces, parties have either inherited, or stand to inherit, sums of money from their parents or other relatives. This can be a contentious issue in some cases in which our lawyers can help.
Investment Accounts
In many marriages, parties can have investments accounts where they are saving money in the hopes that they can have a better life, save for their retirement and have assets in which to provide their children and grandchildren. When a divorce takes place, it's vital that these assets be appropriately accounted for in the property division phase of a divorce.
Stocks and Bonds
Many married couples also have significant sums in stocks and bonds. It's vital to work with an attorney to have an accounting of what is out there and to ensure it is properly addressed in family court.
Life Insurance
Term life and whole life insurance policies are commonly held by parties in a marriage. When parties divorce, these life insurance policies can become critically important in terms of the possession of the policies, the beneficiaries that remain on them and who is to make the payments and/or have possession of the cash value in instance of whole life insurance.
Appreciation of Separate Property
In some dissolution of marriages, parties owned and possessed separate property prior to marriage. During the marriage, these assets can often increase in value due, in part, to the contribution of the other spouse. Our lawyers can help individuals in these instances.
Marital Debt
In many cases, debt can be a real problem as it relates to property distribution, albeit through support or marital debt. If that is the case in your divorce, our lawyers can assist.
Jumbo Mortgages
Jumbo mortgages can be an issue in some divorces. If this is the case for you, you can talk to our lawyers.
Property Issues for Unmarried Couples
For many unmarried couples, they can accumulate property and debt. When they separate, the property and debt they own together can become a contentious issue. Our lawyers can often help if this is the case through a partition action.
Quit Claim Deed
Some people wonder how to transfer title out of joint names after a divorce. Our lawyers can help explain how a Quit Claim Deed works.
Refinance
Many are not sure as well how to get a mortgage out of the names of both spouses after divorce. Find out more about refinance and divorce.
Gift Affidavits
Parties oftentimes have to transfer title to their vehicles as part of a divorce. Find out more about how gift affidavits work.
Commissioner to Sell Real Estate
Some divorcing parties are unable to work together to sell their real estate as part of the divorce. You might be interested in knowing more about the possibility of a Commissioner being appointed.
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From our webpage, you can also read articles about family law, view informational videos, seminar videos, listen to our podcast, download our mobile application or view support calculators for MissouriIllinois and Kansas.

If you are looking to find and hire a child custody lawyer, contact us online or by phone to schedule a consultation at any of our convenient locations.

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