Should I refinance before or after a divorce?

My spouse and I are separated but not officially divorced. I want to refinance so I can get just my name on the mortgage payments (he's agreed to let me keep the house). When should I file for refinancing?

Answer
“If you haven’t officially filed divorce papers yet, refinancing now will be much easier.
If you wait until after you’ve filed for divorce or separation, you’ll have to report this to the mortgage lender and provide a written agreement detailing how you and your spouse are dividing the assets.
After the divorce is finalized, refinancing will be even more complicated. In many divorces, one of the parties will have to pay alimony, and to a mortgage lender, these payments are viewed as a monthly obligation, similar to a car payment. When trying to refinance, this will be included in your debt-to-income (DTI) ratio, which affects your new rates.
Since you’re refinancing to take your spouse’s name off the mortgage, you should also review your insurance policy to reflect this change. Divorce might affect your insurance rates, so it’s a good time to shop around and ensure you’re getting the best deals.
If you haven’t bundled your car and homeowners insurance in the past, this is a good way to save money.
You can also save money by comparing rates. Save the hard work of comparison shopping to the free Jerry app. Jerry compares rates from the top 50 companies and delivers the best deals to your phone in minutes. We’ll even do all the paperwork for you, transferring your personal information to the new provider and cancel your old policy for you.”
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Sophie Newman
Answered on Aug 09, 2021
Sophie Newman is a writer from California. Her hobbies include brewing her own kombucha, riding horses, and taking long road trips.
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