Refinancing the Marital Home in Florida Divorce: Options and Requirements for 2026

What You Need to Know About Refinancing Your House in a Florida Divorce

When one spouse wants to keep the marital home in a Florida divorce, refinancing is typically required to remove the other spouse from the mortgage. In my experience handling hundreds of these cases across Florida, the refinancing process is often the biggest hurdle couples face when dividing their most valuable asset. Understanding your options before you finalize your divorce can save you thousands of dollars and months of frustration.

Florida courts cannot force mortgage lenders to release a spouse from a loan. This means if you want to keep the house and your spouse wants their name off the mortgage, refinancing into your name alone is usually the only solution. Let me walk you through exactly how this works, what lenders require, and what alternatives exist if traditional refinancing is not an option.

How Florida Courts Handle the Marital Home in Divorce

Under Florida Statute 61.075, marital property must be divided equitably between spouses. The marital home, often the most significant asset in a marriage, receives special consideration. Courts have several options when dealing with the family residence:

• Award the home to one spouse with an equalizing payment to the other
• Order the home sold and proceeds divided
• Allow one spouse exclusive use for a period (often until children reach majority)
• Award the home as part of alimony considerations

When one spouse is awarded the home, the divorce settlement or final judgment typically includes a deadline for refinancing. This deadline is crucial because until refinancing occurs, both spouses remain legally responsible for the mortgage regardless of what your divorce decree says.

I have seen too many cases where a spouse believed they were protected because the divorce agreement said their ex would pay the mortgage. Then the ex missed payments, and my client's credit was destroyed. The mortgage company does not care about your divorce agreement. If your name is on that loan, you are responsible.

Understanding the Refinance House Divorce Florida Process

Refinancing during or after a Florida divorce involves several specific steps that differ from a standard refinance. Here is what you need to prepare for:

Step 1: Determine Home Value and Equity

Before you can refinance house divorce Florida situations require, you need to know exactly what your home is worth and how much equity exists. Most lenders will order their own appraisal, but getting a preliminary estimate helps you understand what is realistic.

In 2026, Florida home values have stabilized in most markets after years of significant appreciation. This stability actually helps divorcing couples because it makes equity calculations more predictable. The equity in your home equals the current market value minus all outstanding liens, including your mortgage balance, any home equity loans, and judgment liens.

Step 2: Qualify on Your Income Alone

This is where many divorcing spouses encounter problems. During marriage, lenders considered both incomes when approving your original mortgage. Now you must qualify using only your income, unless you have a co-signer.

Lenders will examine:

• Your debt-to-income ratio (typically must be below 43 percent)
• Employment history and stability
• Credit score (most conventional loans require at least 620)
• Cash reserves for closing costs and prepaid expenses
• Any alimony or child support you will receive (if documented in your divorce decree)

Here is something many people do not realize: if your divorce decree awards you alimony or child support, lenders can count that income toward your qualification. However, most lenders require proof that payments will continue for at least three years and that your ex has been making consistent payments for at least six months. This creates a catch-22 situation I help clients navigate regularly.

Step 3: Time Your Refinance Strategically

Timing your refinance can significantly impact your approval odds and terms. Consider these factors:

If you are receiving alimony or child support, waiting until you have a six-month payment history often results in better loan terms because lenders can count that income.

If your credit took a hit during the divorce process, waiting a few months while actively rebuilding your credit score could mean the difference between approval and denial.

Interest rates fluctuate, so working with a mortgage professional who understands divorce-related refinances helps you lock in favorable terms.

Buyout Options When You Want to Keep the House

When one spouse wants to keep the house divorce Florida situations often involve a buyout of the other spouse's equity interest. This buyout can happen several ways:

Cash-Out Refinance

The most common approach is a cash-out refinance where you borrow enough to pay off the existing mortgage plus give your spouse their share of the equity. For example, if your home is worth $400,000 with a $200,000 mortgage and you owe your spouse $100,000 for their equity share, you would need to refinance for at least $300,000.

Cash-out refinances typically have slightly higher interest rates than rate-and-term refinances. In 2026, expect rates approximately 0.25 to 0.5 percent higher for cash-out loans.

Offset with Other Assets

Rather than paying cash for your spouse's equity share, you might offset it with other marital assets. Perhaps you keep the house and your spouse keeps retirement accounts of equal value. This approach is detailed in our discussion of what a wife is entitled to in a Florida divorce, though these principles apply regardless of gender.

This offset method can allow you to do a simple rate-and-term refinance (just removing your spouse from the existing loan) rather than a cash-out refinance, often resulting in better terms.

Seller Financing from Your Spouse

In some cases, your spouse might agree to act as a partial lender. They would remain on the deed as a lien holder while you refinance the primary mortgage into your name alone. You then make payments to your ex over time for their equity share.

This arrangement requires careful legal documentation and is not appropriate for every situation. However, it can work well when the spouse keeping the house has income but limited liquid assets, and the other spouse needs regular income rather than a lump sum.

Mortgage Assumption as an Alternative to Refinancing

Mortgage assumption divorce situations can sometimes avoid refinancing entirely. With an assumption, you take over the existing mortgage without obtaining a new loan. This preserves the original interest rate and terms.

However, most mortgages today are not assumable. FHA and VA loans are the primary exceptions:

FHA Loans: These are assumable, but the person assuming the loan must qualify with the lender and pay an assumption fee. A qualifying assumption takes the original borrower completely off the hook.

VA Loans: These are also assumable, but special rules apply. If a non-veteran assumes a VA loan, the veteran's entitlement remains tied up until the loan is paid off or refinanced.

Conventional Loans: Most conventional mortgages contain due-on-sale clauses that prevent assumption. Transferring title to one spouse typically triggers this clause, though some lenders make exceptions for divorce transfers.

If you have an FHA or VA loan with an interest rate below current market rates, assumption can save you significant money. I recently worked with a client who assumed her ex's VA loan at 3.25 percent when current rates were above 6 percent. The savings over the life of the loan were substantial.

What Happens When You Cannot Refinance

Sometimes refinancing simply is not possible. Perhaps your income is too low, your credit needs repair, or the home is underwater (worth less than the mortgage balance). Florida courts and divorce attorneys have developed several solutions for these situations:

Deferred Sale

The court might order that one spouse can remain in the home for a specified period, after which the home must be sold or refinanced. This is common when minor children are involved and the court wants to minimize disruption.

During this period, the divorce decree specifies who pays the mortgage, insurance, taxes, and maintenance. It also typically addresses how any appreciation or depreciation will be divided when the home is eventually sold.

Indemnification Agreements

If refinancing must wait, a strong indemnification clause protects the spouse whose name remains on the mortgage. This clause requires the spouse living in the home to make all payments and hold the other spouse harmless from any default.

While an indemnification agreement does not protect you from the mortgage company (they can still come after both borrowers), it does give you legal recourse against your ex if they damage your credit by missing payments.

Forced Sale

If neither party can refinance and neither can afford to buy out the other, selling the home is often the only option. Florida courts have authority under Florida Statute 64.011 to order partition and sale of jointly owned property when spouses cannot agree.

Protecting Yourself During the Refinance Process

Based on my years of handling these cases, here are the most important steps to protect yourself:

Set a realistic refinance deadline. Standard divorce agreements often allow 60 to 90 days, but in 2026's lending environment, 120 days is more realistic. Factor in time for appraisals, underwriting, and potential complications.

Include consequences for missing the deadline. Your agreement should specify what happens if refinancing does not occur on time. Options include automatic listing of the home for sale, payment of the other spouse's attorney fees, or specific financial penalties.

Require proof of application. Your divorce agreement should require the refinancing spouse to provide proof they have applied for refinancing within a certain timeframe. This prevents last-minute surprises.

Address the quitclaim deed timing. The spouse being removed from the mortgage will need to sign a quitclaim deed transferring their ownership interest. Coordinate this with the refinancing closing to protect both parties. Generally, the deed should be signed at or immediately after the refinance closes.

Consider monitoring the mortgage. Until your name is removed, you have a right to know if payments are being made. Some couples agree that the spouse remaining on the mortgage can receive payment confirmations or access to the mortgage account.

Working with Professionals Who Understand Divorce Refinancing

Not all mortgage professionals understand the unique aspects of divorce refinancing. When selecting a lender, ask these questions:

• Do you count alimony and child support as income, and what documentation do you require?
• Have you worked with divorcing borrowers before?
• Can you coordinate with my divorce attorney on timing and documentation?
• What is your experience with divorce-related title issues?

A lender familiar with divorce situations can often find solutions that general lenders miss. For example, they might know how to structure the loan application to count future alimony before payments actually begin, or how to work around common title complications.

Similarly, your divorce attorney should understand the refinancing process well enough to draft settlement terms that are actually achievable. If your attorney negotiates terms requiring refinancing within 30 days, they may not understand how mortgage lending actually works.

At our firm, we coordinate with mortgage professionals throughout the divorce process to ensure that settlement terms involving refinancing are realistic and properly documented. We offer strategy sessions specifically to help clients understand their options before making major decisions about the marital home.

Related Financial Considerations

Refinancing the marital home connects to several other financial aspects of your divorce:

Debt Division: Understanding how all marital debts will be divided affects your debt-to-income ratio for refinancing. Learn more about Florida divorce debt division.

Hidden Assets: If you suspect your spouse is hiding assets that could affect the equity calculation, read about hiding assets in Florida divorce consequences.

Attorney Fees: The costs of negotiating property division, including refinancing requirements, are part of overall divorce expenses. Our guide on who pays attorney fees in Florida divorce explains how these costs are typically handled.

Retirement Accounts: If you are trading house equity for retirement accounts, understand the implications described in whether a spouse can take retirement in Florida divorce.

Moving Forward with Your Decision

Deciding whether to keep the marital home and refinance involves both emotional and financial calculations. The home might hold precious memories, but those memories come with a price tag that includes not just the mortgage payment but also maintenance, insurance, taxes, and the opportunity cost of tying up equity.

In my experience, about half of clients who initially want to keep the house ultimately decide to sell once they fully understand the financial implications. There is no wrong answer, only the answer that is right for your specific situation.

If you are facing decisions about the marital home in your Florida divorce, consider scheduling a consultation to discuss your specific circumstances. Understanding your options before you negotiate can save you from agreeing to terms that are impossible to fulfill.

This article provides general information about Florida divorce law and is not legal advice. Every case is unique. For advice specific to your situation, schedule a consultation with a Florida-licensed attorney.