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I'm thinking about refinancing our house in my name (and obligation) only, in order to provide funds for my soon to be ex-husband to buy another house. Do we need to have legal evidence of our intent to divorce and have the house become my sole and separate property, like an order of legal separation? I'm thinking that without such legal documentation, Arizona's community property laws could stymie a refinancing in one spouse's name (and credit rating) only. Is it a good idea to proceed to refinance before all our financial arrangements are legally agreed to?
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| Many people refinance their home for precisely the purpose you describe prior to getting divorced. It will depend on your lender as to what will be required to go forward with the refinance. Even without a divorce, marital partners can give up their interest in a home by signing a Disclaimer Deed. Reasons why this was done can be raised in a divorce and judges have a lot of discretion in the division of property, if you are going that route, but nothing will change the fact that the home is now owned by one spouse. There are several other factors to consider, such as your overall entire financial agreement and the possiblity that goals and agreements may change. Best to have a clear idea of what your agreement will be and be sure you are committed to that outcome before doing anything. |
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