Can someone who is getting a divorce get a equity loan from the house to pay off their spouse?

Question

Can someone who is getting a divorce get a equity loan from the house to pay off their spouse, even if the house is paid for or can they refinace?

Answer 1

The interest rate and tax benefits from a traditional mortgage would be better than the HELOC.

Answer 2

For matters pertaining to equity the authority that I go to is Marian Snow - best-selling author of "Stop Sitting on Your Assets". She talks about how to let your equity work for you, how to become your own bank, and secure your financial future. I got a lot of new ideas, and now view my money and financial management in a different way.

Preview the book here -- there's a lot of vital information you can't find anywhere else. I suggest too that you make a small investment on the book. It changed my total outlook on investments, mortgage, equity and personal finance.

http://www.stopsittingonyourassets.com/M...

You can contact Marian through her blog here:

http://mariansnow.typepad.com/assets

Answer 3

Equity loans are tough to get right now in general because the default rate is high and property values are still falling (see Case-Shiller Index).

I think I would suggest looking into a refi, but don't have enough information to give you specific advise.

Sorry about your situation. Good luck.

Answer 4

Ask your accountant, but if the house is completely paid-off a straight mortgage would be cleaner and cheaper, wouldn't it?