Divorce Mortgage Refinancing
Remove ex-spouse from mortgage, buyout equity, refinance Bergen County marital home. Post-divorce financial solutions.
Post-Divorce Refinancing in Bergen County
Bergen County divorces often involve substantial marital assets, with median home values at $749,714. Divorce refinancing allows the spouse keeping the home to buyout the other spouse's equity share and remove them from the mortgage, providing financial separation and sole ownership. This process requires qualifying on your individual income and navigating New Jersey's equitable distribution laws.
Whether you're awarded the family home in Ridgewood, buying out your ex-spouse in Paramus, or splitting proceeds from a Fort Lee condo sale, divorce refinancing provides the financial mechanism to execute settlement agreements while protecting credit scores and establishing independent homeownership.
Divorce Refinancing Options
Cash-Out Refinance (Buyout)
Refinance for enough to pay off existing mortgage plus cash to buyout ex-spouse's equity share.
- Removes ex-spouse from title & mortgage
- Cash paid directly to ex-spouse
- New loan in your name only
- Rate: 6.40% (30yr typical)
Rate & Term Refinance (No Buyout)
Remove ex-spouse from mortgage without cash-out, when they're waiving equity claim or already compensated.
- Lower rate typically available
- No cash to ex-spouse (waived equity)
- Title transferred via quitclaim deed
- Lower closing costs (no equity withdrawal)
Divorce Buyout Calculation Example
Bergen County Marital Home Buyout Scenario
New Refinance Loan Amount:
Existing Mortgage Payoff: $300,000
+ Cash to Ex-Spouse (buyout): $225,000
+ Closing Costs (~2%): $10,500
Total New Loan: $535,500
New Monthly Payment @ 6.40% (30yr):
$3,355/month
(Principal & Interest only, add taxes/insurance)
Frequently Asked Questions
How soon can I refinance after divorce in New Jersey?
Most lenders require waiting 6 months after your divorce decree becomes final before refinancing in New Jersey. This waiting period allows financial separation and ensures accurate income/asset documentation. However, some lenders may approve refinancing sooner if the divorce decree clearly awards the Bergen County home to one spouse and requires refinancing within a specific timeframe. You can start the application process before 6 months but closing typically occurs after the waiting period expires.
What is a divorce buyout refinance?
A divorce buyout refinance allows one spouse to purchase the other spouse's equity share and remove them from the mortgage. Example: Bergen County home valued at $750,000 with $300,000 mortgage balance has $450,000 equity. Each spouse owns $225,000 equity. Buying spouse refinances for $525,000 ($300,000 existing mortgage + $225,000 buyout to ex-spouse), removing ex-spouse from title and mortgage. Requires qualifying on your individual income and credit.
Can I qualify for a divorce refinance on my income alone?
Yes, you must qualify for divorce refinancing based solely on your individual income, credit score, and debt-to-income ratio. Lenders cannot include ex-spouse income even if divorce decree requires them to contribute to mortgage payments. Options to improve qualification: include alimony/child support as income (requires 6-12 months payment history and 3+ years continuation), co-borrower (new partner, family member), or reduce loan amount by increasing down payment from savings or retirement accounts.
What documents do I need for divorce refinancing in Bergen County?
Divorce refinance documentation includes: final divorce decree (signed by judge), property settlement agreement detailing home ownership/equity split, proof of alimony/child support payments (12 months bank statements if counting as income), pay stubs and tax returns (2 years), current mortgage statement, homeowners insurance, property tax bills, bank statements (2-3 months), and signed letter from ex-spouse agreeing to refinance and title removal. Bergen County property appraisal required to determine current home value.
Can alimony and child support count as income for divorce refinancing?
Yes, alimony and child support can count as qualifying income if: 1) Documented payment history of 6-12 months (bank statements showing deposits), 2) Payments must continue for at least 3 years from loan application date, 3) Divorce decree specifies payment amount and duration. For Bergen County divorces, alimony is common given high property values and income levels. Child support typically continues until child turns 19 in NJ (or graduates college if court-ordered). Use full monthly amount as qualifying income.
Ready to Refinance After Divorce?
Confidential consultation for post-divorce refinancing. Remove ex-spouse, buyout equity, establish independent homeownership.