Divorce Refinance in Wisconsin 2025 – Keep the Home, Move Forward Financially
Going through a divorce is hard enough - figuring out the mortgage shouldn't make it harder.
If you or your ex are on a joint home loan and one of you plans to keep the house, a divorce refinance in Wisconsin can help you remove the other person from the mortgage, access equity for a buyout, and start fresh financially.
Adam Zeman - Union Home Mortgage
NMLS #870441
📞 414-975-2654 | 📧 azeman@uhm.com
🌐 www.mkemortgage.com
Helping Wisconsin homeowners refinance confidently and move forward after divorce.
Why Divorce Refinancing Matters
When a couple divorces, both names usually remain on the existing mortgage - which means both parties are still legally responsible for payments, even if one person moves out.
A divorce refinance solves that problem by:
- Removing your ex from the mortgage and title
- Paying off the existing loan with a new mortgage in one person's name
- Allowing a spouse buyout using home equity
- Stabilizing your finances and credit
If your divorce decree says you'll keep the house, refinancing is the cleanest way to meet that obligation - and protect your credit from any future payment issues.
How a Divorce Refinance Works in Wisconsin
Refinancing after divorce follows the same basic process as any other refinance - but with some added legal and timing considerations.
Here's what happens:
- Finalize or draft your divorce decree
Your lender needs a copy of the settlement agreement showing who will retain the home. - Determine your home's value and equity
An appraisal will confirm how much equity you have. You can use that equity to pay off the other spouse's share if needed. - Qualify for a new loan on your own
The new loan will be based on your individual income, assets, and credit. Most programs allow this even shortly after the divorce is finalized. - Close the new loan and update the title
Your ex's name will be removed from both the loan and property deed at closing. - Celebrate your financial independence
You'll have a clean title, a manageable payment, and peace of mind.
Common Divorce Refinance Options
| Loan Type | Best For | Highlights |
|---|---|---|
| Conventional Refinance | Borrowers with solid credit & equity | Remove an ex-spouse, take cash out for buyout, or reduce the rate. |
| FHA Refinance | Moderate credit scores or tighter income ratios | Flexible guidelines, ideal if you're rebuilding credit post-divorce. |
| Cash-Out Refinance | Equity buyout or debt payoff | Access up to 80% of your home's equity to settle marital obligations. |
| Streamline Refinance | When both parties agree and credit is solid | Faster processing if the loan is already in one name and rates improve. |
What Lenders Look For After Divorce
Even if your finances are complex, lenders mainly evaluate:
- Income stability: W-2s, paystubs, or alimony/spousal support (with 3-year continuance).
- Credit history: Late payments, joint accounts, or newly separated credit lines.
- Equity: The more equity you have, the easier it is to qualify or buy out your ex.
- Debt-to-Income (DTI): Usually under 45 - 50%.
If your ex was the primary earner, don't panic - there are loan programs and underwriting options that focus on your ability to make payments, not theirs.
Wisconsin Divorce Refinance Example
Scenario:
Sarah and Mark own a $350,000 home in Waukesha with a $210,000 mortgage balance. Their divorce settlement says Sarah keeps the house and will pay Mark $70,000 for his share of the equity.
Solution:
Sarah does a cash-out refinance up to 80% LTV ($280,000), pays off the old mortgage, gives Mark his $70,000 equity buyout, and keeps the house in her name.
✅ Ex removed from mortgage
✅ Fresh 30-year loan at a fixed rate
✅ Both parties financially separated
How Soon Can You Refinance After Divorce?
You can usually refinance as soon as your divorce decree is finalized and the property is officially awarded to you.
If you need to refinance before the decree is complete, your lender may use a draft settlement agreement instead - just know that both parties typically need to sign off.
Every situation is different, which is why it's smart to talk to a local lender who understands both the legal and financial side of divorce lending.
📅 Schedule a quick consultation or call me at 414-975-2654 - I'll review your options in 15 minutes or less.
Key Tips for Refinancing After Divorce
- Separate joint debts early. Remove your ex from credit cards and joint loans.
- Close joint bank accounts after settlement and update all auto-pay settings.
- Document alimony or support income clearly (must continue for at least 3 years).
- Check your credit report for any accounts still showing both names.
- Consult your attorney and lender together before signing any buyout or quitclaim deed.
📖 Also read: Refinance After Divorce in Wisconsin - Step-by-Step Guide (2025)
Final Thoughts
Divorce changes a lot - but losing your home doesn't have to be part of it.
With the right refinance strategy, you can protect your credit, retain your home, and reset your finances for a clean start.
If you're going through a divorce and need to explore your refinance options, reach out today for a confidential review.
📞 Call or text 414-975-2654
📧 azeman@uhm.com
🌐 www.mkemortgage.com