QUESTION
Will refinancing affect community property during a divorce?
Asked on Dec 13th, 2013 on Divorce - Florida
More details to this question:
I live in a community property state. I bought my house before I met my wife and it is solely in my name. In the event of a divorce, I would expect to have a good chance of keeping the house. Will refinancing the house during the marriage affect me retaining the house if I divorce my wife?
7 ANSWERS
Personal Injury Attorney serving Marksville, LA
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The Bryan Law Firm L.L.C.
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It could if the bank requires that you donate a portion of the house to your wife, which some banks do. This would especially be true if you're applying for joint credit. You should make sure the bank know you are not applying for joint credit and you will not agree to donate any portion of the property to your wife. Note that, even if you maintain separate ownership of the property, your wife may still have a right to reimbursement for a portion of the house notes if paid with community funds, if you and she are divorced.
Answered on Dec 18th, 2013 at 8:44 PM
Family Law Attorney serving Peoria, AZ
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The Law Firm of Jessica M. Cotter, P.L.L.C.
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In Arizona if you refinance the house adding your wife's name to the deed, then you have essentially gifted a community interest to her. Even if you do not do that there may still be a community interest in the property based upon community funds being used to pay the mortgage or for repairs and upkeep. If you can refinance the property with your wife signing a community property disclaimer deed, the you will be in better shape, but still no guarantees. You should consult with an experienced family law or real estate lawyer in your area to discuss this issue.
Answered on Dec 18th, 2013 at 8:44 PM
Yes. Especially if her name goes on the house during the refinance.
Answered on Dec 18th, 2013 at 8:44 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Possibly, because the mortgage company will want her to sign off on the loan. Your bigger problem is how long have the two of you lived there as husband and wife and were community assets used on the house. Depending on the answers, it may be that your separate property has been transmuted into community property. Talk with your divorce lawyer about the situation.
Answered on Dec 18th, 2013 at 8:43 PM
It certainly could. In addition, if the community property state is California and a divorce action has been filed, you could be in violation of court orders if you refinance. In most community property states, even though you owned the house before marriage and title is only in your name, your spouse will be entitled to part of all payments and provable improvements made to the property during the marriage. You absolutely need to meet with a good family law attorney in your community to protect yourself.
Answered on Dec 16th, 2013 at 11:21 AM
Child Support Attorney serving Overland Park, KS
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Rosenak Family Law, LLC
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You should wait on refinancing a house, unless you drastically need to reduce your monthly payments. In Kansas, all property is potential divisible. However the Court does consider what we call "premarital" and "non-marital" property. On houses, we generally look at its equity coming into the marriage and equity at the time of separation or divorce. Any increase or decrease in equity could be considered as "marital" to be divided. Who is listed on a property is generally only relevant for evidence purposes regarding the above. There are many arguments and issues to divide and allocate property in a Kansas divorce.
Answered on Dec 16th, 2013 at 11:21 AM
It might. The money, or debt, you use for refinancing may be considered community property and, if it is, you may have a problem, i.e. voluntarily contributing the home to the marriage, etc. My suggestion is to wait until the divorce if final before moving forward with refinancing. Good luck.
Answered on Dec 16th, 2013 at 11:20 AM