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Refinancing A Mortgage After A Divorce

  • Writer: Jonathan Shupe
    Jonathan Shupe
  • Jun 1
  • 3 min read
Man in suit pointing up, text on refinancing after divorce, blue cityscape background, informative mood. Website: shupelendinggroup.com.

What Happens If I Can’t Refinance After a Divorce?


Divorce brings a long checklist of emotional, legal, and financial changes—and if you and your ex owned a home together, refinancing the mortgage is probably near the top of that list. But what if one of you can’t qualify to refinance on your own? This is a very real scenario that can leave people feeling stuck, especially if the court awarded the home to one party, but the mortgage is still in both names. Here's what you need to know from a mortgage professional standpoint.


Why Refinancing A Mortgage After Divorce Matters

When you refinance, you're essentially replacing the old mortgage with a new one, ideally in just one person's name. This does two things:

  1. Removes the ex-spouse from financial responsibility.

  2. Gives the person staying in the home full control—and accountability.

If you can’t refinance, things can get complicated quickly.


You’re Still Legally Liable

Even if your divorce decree says your ex is responsible for the mortgage, if your name is still on the loan, you're legally on the hook. The lender doesn't care what your court documents say—they only care whose name is on the mortgage contract.


That means:

  • Late or missed payments can damage your credit.

  • You may be denied new credit because the mortgage is still counted as your debt.

  • Foreclosure risk is shared by both parties, no matter who lives in the home.


Why You Might Not Be Able to Refinance

There are several reasons someone might not qualify to refinance post-divorce:


  • Insufficient income to support the mortgage on your own.

  • Damaged credit from missed payments during the separation.

  • High debt-to-income ratio, especially if you’re now responsible for child support, alimony, or other loans.

  • Home value has dropped and there's not enough equity to refinance.


divorce image

What Are Your Options?

If refinancing isn’t possible right now, don’t panic—there are some potential paths forward:


1. Sell the Home

Sometimes the cleanest option is to sell the house and split any proceeds. This eliminates the joint debt and lets both parties move on financially.


2. Loan Assumption

If your current mortgage allows it, a loan assumption might let one spouse take over the mortgage without refinancing. This depends on the lender and requires approval, but it can be a good alternative.


3. Wait and Work on Finances

If credit or income is the issue, it may just take time to rebuild. During this time, both parties need to ensure the mortgage is paid on time every month to avoid credit damage.


4. Add a Co-Signer

While not always ideal, a family member or trusted person might be able to co-sign to help you qualify. Just keep in mind they’re financially tied to the loan.


5. Buyout with Other Assets

If the mortgage can’t be refinanced, one spouse might agree to "buy out" the other's equity share through other means—like retirement funds or personal property—to settle things fairly.


Communicate and Document Everything

If you’re stuck on the mortgage together post-divorce, keep the lines of communication open. Agree on who’s making payments, who’s claiming the tax benefits, and what happens if one person wants out. Put it in writing—even if you trust each other. Future-you will thank you.


Talk to a Mortgage Pro Early

The best thing you can do is talk to a mortgage professional as soon as you know divorce is on the table. They can help you understand your refinance options, guide you through the qualification process, and even help brainstorm next steps if refinancing isn’t possible yet.


Final Thoughts


Not being able to refinance after a divorce doesn’t mean you're trapped forever, but it does mean you’ll need to be proactive. Protect your credit, communicate clearly, and make a plan. With the right guidance and a little patience, there’s always a path forward.







Smiling man in a navy suit and white shirt, hands clasped, standing against a plain background. Professional and friendly appearance.
Jonathan Shupe Branch Manager

Jonathan Shupe NMLS ID# 1649211 is Manager of Shupe Lending Group NMLS ID# 2478065. Jonathan Shupe and his team of loan officers are licensed in multiple states. Many of the borrowers of Shupe Lending Group are individuals who did not qualify at other lenders due to those lenders overlays on government and conventional loans. We have a reputation of being able to work with over 270 different lenders to be able to offer out clients dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by our team at Shupe Lending Group. Our team is available 7 days a week, evenings, weekends, and holidays.

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