When a couple divorces and spouse 1 is awarded the home, car , land, or any other asset, they should not have to go through a refinance in order to get spouse 2’s name off the title or deed. The divorce decree should be enough to remove their name from any ownership papers or loans. If they can’t afford the home on their own then it should be up to them to refinance, sell, or go into default.
I know many people that can’t get their name removed from the loan because their ex cannot refinance. If the ex doesn’t make payments then both of their credit scores take a hit. The one that is not responsible for payments may not be able to get a loan for a new home because they are still on the loan for a home they no longer live in or are responsible for.
I have a friend that is self employed (in home child care) she doesn’t show enough income for the bank to refinance but she’s been paying the mortgage on her own her entire 10 year marriage. Since she can’t refinance, she could be forced to sell to remove her ex’s name from the loan.
It would be better if we were working towards ways to solve the divorce problem, of which this merely addresses a symptom.