Divorce Mortgage Buyout Checklist

A buyout refinance is the most common way one spouse keeps the marital home. Use this checklist to stay organized and avoid the delays that derail settlements.

1. Establish the Home's Value

• Order a professional appraisal (not just a Zestimate).
• Agree with your spouse on which value to use — appraisal or recent comps.
• Confirm each spouse's equity share per your settlement.

2. Confirm the Keeping Spouse Can Qualify

• Income reviewed individually, not as a household.
• Credit pulled for the keeping spouse only.
• Debt-to-income (DTI) must fit lender limits, including any spousal support.

3. Gather Your Documents

• Most recent pay stubs (30 days).
• Two years of W-2s or tax returns.
• Two months of bank statements.
• The divorce decree or settlement agreement (draft is fine to start).

4. Run a Buyout Scenario

• Request a written scenario: new rate, new payment, and cash to the other spouse.
• Confirm the buyout amount fits within available equity (typically up to 80% LTV).

5. Lock the Timeline

• Court deadlines are firm — start the refinance early; it typically takes 3–6 weeks.
• Schedule closing before any decree deadline to refinance.

6. Close

• New loan pays off the old mortgage.
• Buyout funds paid to the departing spouse at closing.
• Departing spouse released from the loan and removed from title.

The decree assigns responsibility — only the refinance removes a spouse from the loan.