Why Refinance After a Divorce?
Depending on how the parties dealt with the marital home in divorce, there may be a need to refinance the home after divorce. Even in divorce situations, lenders are generally unwilling to remove borrower's names from loans. To remove a party's name in these situations, the loan either must be satisfied in full or the party wishing to retain the home must refinance. One of the most complicated financial aspects of a divorce can be what happens to the marital home when both parties' names are on the mortgage. Since one party will likely move out of the marital home after the divorce, that party will likely want his/her name off the mortgage so he/she can buy a new home and so that they are no longer liable for the mortgage. If the other party doesn't refi to take the moving party's name off the mortgage, the moving party's rights are going to depend on what is in the settlement agreement or final order granting the divorce. If according to the settlement agreement signed and finalized after divorce, the martial home must be refinanced, your ex could be liable for contempt.
Can I file Contempt if my Ex Fails to Refinance?
If the final divorce documents are silent as to the mortgage, then there may be nothing the moving party can do because there is nothing requiring a refinance. Here there is obviously no issue of contempt. But unfortunately you may be left in a bad spot without the refi. This is why it's critically important to make sure your settlement agreement covers the marital home, mortgage and potential refinance in detail. If the final divorce documents state, however, that the ex-spouse must refinance within so many days, and he has not refinanced within this time frame, then the moving party can file a Petition for Contempt against him to force him to refinance.