Hello, We have ownership and mortgage of our house in both of our names and would like to refinance the house due to lower interest rates. Is it possible to refinance the property only on my spouse’s name? If yes, will I be responsible for any extra loan my spouse gets on mortgage?
Yes, it is possible to refinance the mortgage in only one spouse’s name assuming the mortgage lender will approve it.
Yes, you could still be responsible for one-half of any extra funds that are included in the refinance even if the refinance is only in your spouse’s name and not your joint names assuming the refinance is completed during the marriage and the funds are for a marital purpose or joint benefit of the marriage. While the mortgage lender will not consider you responsible, from a family law legal aspect, if there were a separation/divorce before the mortgage is paid off, you would be one-half responsible.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
Thank you for your response! I have a follow up question. I am contemplating separation, would acting fast (moving out from marital home ) keep me from being responsible for repayment of extra funds (if my spouse refinances the property after my move out date)?
What does the law say if one spouse if accruing debt without the knowledge of another spouse in a troubled marriage.
It is possible that you would not be responsible for one-half of the excess refinance amount if the loan is acquired after the date of separation. But, if the purpose of the excess funds is to pay off credit card debt acquired during the marriage for example, then the excess funds could still be considered a marital debt to which you are both responsible.
Marital debt that is divided equally between the spouses is debt that is acquired during the marriage (between the date of marriage and date of separation) and is for a marital purpose or a joint marital benefit. Debt that was acquired without the knowledge of one spouse could be considered the separate debt of the party acquiring it.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
I think my spouse is contemplating separation. Will I be able to refinance the house on my own after he moves out or will I need him as a co-borrower on the new mortgage (we both own the house and both of our names are on the property deed)? Will he be responsible to pay the mortgage after separation?
If you are going to keep the house, then you would need to refinance on your own. If you needed a co-signer, you would need to use someone other than your husband. Contemporaneously with the refinance, your husband would sign a quitclaim deed conveying his interest in the home to you.
It is best to have all of these terms, along with the other property division/equitable distribution settlement terms memorialized in a separation agreement or equitable distribution court order.
If your husband has been the supporting spouse and you are the dependent spouse, then he should continue to pay the mortgage after a separation.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.