My wife and I are contemplating divorce. As part of the settlement and to split assets, we need to refinance the mortgage in her name. If we do that now, and at a later point we decide to not split up, what rights/obligation do I have to the house? Does it affect anything if I die if we are married? Or if we are not married? I guess I am asking if this is a smart move?

Hello George:

I don't know where you're getting your legal advice from, but fire that person!

In the first place, unless your wife makes a BUNCH of money, she's not going to be able to refinance using her income alone.

Next, if it CAN be done, you're going to have to give up YOUR interest in the house. In other words, you're going to have to SELL her your half. The bank isn't going to leave you on the title and NOT the mortgage.

Given that the house probably isn't worth what you paid for it, selling it to her MIGHT be a good idea. If you get back together, you'll be a roommate. If the value of the house goes up, you'll be married to a wealthy woman. If you die, it has NOTHING to do with the house.

So, before I'd ask whether I SHOULD do something, I'd find out whether I COULD do it.

excon

In addition to what excon said, a settlement takes affect AFTER you sign the divorce papers. So, if the settlement specifies that she has to refinance the house in her name, that happens after the divorce is final.