QUESTION
Refinancing in only my name? Will this cause any issues down the road in a divorce settlement?
Asked on Mar 11th, 2021 on Divorce - New Jersey
More details to this question:
Do you think there is any legal problem with refinancing and only putting the new mortgage in my name, but leaving his name on the title and deed? We are both on the current mortgage. So, If we divorce down the road which we are not sure about, can his lawyer use this against me negatively in a divorce? I dont want to make a bad choice, just trying to save myself all the costs of having to refinance again in another 6-12 months to have his name removed if I dont have to, but dont want to miss the low interest rates by waiting to see how this all plays out. He pays the mortgage and I pay the other bills. We are currently living separately for the past year.
2 ANSWERS
Family and Matrimonial Law Attorney serving Parsippany, NJ
Partner at
Weinberger Divorce & Family Law Group, LLC
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Thank you for your question. Whether the mortgage is in one name or both on marital property does not make it only one person’s liability. Even if only one name is on the mortgage, both parties would still be liable for the debt if it is marital debt. By having only the mortgage in your name, would make it easier for you to buy him out in the event of a divorce, since you would not need to refinance again. If the mortgage is in both names, a refinance would need to occur for a buyout. To help you understand your rights and options, I strongly urge you to schedule an attorney consultation.
Answered on Mar 12th, 2021 at 1:33 PM
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Divorce Attorney serving Short Hills, NJ
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Diamond & Diamond, P.A.
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If the title to your house is currently in both names, I will be shocked if the mortgage lender is willing to let you refinance the mortgage in your name alone. It is not uncommon for people to put the title and mortgage in one persons name because the other party has poor credit. If the purpose of refinancing the mortgage is to get a lower interest rate AND the mortgage lender says that title needs to be in your name alone as well, then sign something with your spouse, saying that the transfer of title from joint name into your name alone is purely for purposes of getting a lower rate on the mortgage and will not effect his ownership interest in it. Then, in the future, if you do decide to go forward with a divorce and want to keep the house, title and the mortgage is already in your name alone and at that point, you and he can figure out how you buy out his equity interest in the property ( cash buyout / trasnfer of other retirement monies, etc) but you will not need to refinance the mortgage again nor incur additional costs for keeping the house.
Answered on Mar 12th, 2021 at 5:34 AM