Home Refinancing During Separation and Divorce: What You Need to Know

Home is where we make our memories, where you feel safe and comfortable, and where you lay your head down after a long day at work. That is why when it comes to divorce, the marital home can be a big source of contention. Many people like the idea of keeping the home in order to hold onto the good memories of raising your children there, while others cannot wait to get out and start a new chapter in their lives. Whatever your stance is, a decision must be made. This means it is important to know your options when making this important decision.

Equitable Distribution

Debts and assets of North Carolina married couples are governed by the state’s statutes involving equitable distribution. The goal of a divorce is to divide the marital debts and assets as equitably as possible. There are a few different options for the distribution of the marital, specifically.

One Spouse Keeps the Home: If you leave this matter up for the Judge to decide, he or she will distribute the home to one spouse. If you and your spouse come to an agreement prior to a Judge deciding, then you may agree for one spouse to keep the home. In most cases there is a mortgage associated with the home, and the party keeping the home will have to assume responsibility for timely paying the mortgage, as well as the taxes and insurance. If the mortgage is held in the other spouse’s name, or it is listed jointly, then the spouse keeping the home will have to refinance the home during divorce in their sole name. Depending on their financial circumstances, this is not always possible or it may take some time.

Sell the Home: Another option that parties may agree on is to sell the home and distribute the proceeds equally between the spouses. Depending how much debt is owed on the property, there may be little to no proceeds available after paying the realtor and closing costs.

Legally Separated

An experienced family law attorney can help you understand your options and guide you through the process that is right for you when it comes to refinancing during separation and divorce.

It is also important to keep in mind the rules that apply in states such as North Carolina. There are various documents that both spouses will need to sign in order to refinance or to sell the property.

We Can Help

If you are considering divorce or separation, the attorneys at Robison Smith Law can help you understand your legal rights and options. Contact us today and let us ensure that your assets and debts are divided appropriately.


If you are ready to move forward, please contact us now.

We invite you to call or send a text message to (704) 741-0220  or send an email to info@rsfamilylawnc.com

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