Is it necessary to refinance in a divorce?

[Chris Penny]

We are getting a divorce and I am keeping the house. My wife asks me to refinance asap to pull her name out of the house, mostly to make it easier for her to buy a house in the future because otherwise lender still counts the current house's mortgage as her debt.

However, I just talked to another friend of mine who is in a similar situation and she said that refinancing is not necessary. As long as my wife proves to a lender that: (1) we are divorced, (2) an agreement that she's not involved in the house anymore, (3) evidence that I have been paying the mortgage with my own account (for a few months), then the house's mortgage is not counted in her debt. The only risk to her is that if I miss a payment then her credit score will be affected. Is that true, can you guys please confirm this? 

Rate is high at the moment that's why I don't want to refinance. 

[Randy E.]

Originally posted by @Chris Penny:

We are getting a divorce and I am keeping the house. My wife asks me to refinance asap to pull her name out of the house, mostly to make it easier for her to buy a house in the future because otherwise lender still counts the current house's mortgage as her debt.

However, I just talked to another friend of mine who is in a similar situation and she said that refinancing is not necessary. As long as my wife proves to a lender that: (1) we are divorced, (2) an agreement that she's not involved in the house anymore, (3) evidence that I have been paying the mortgage with my own account (for a few months), then the house's mortgage is not counted in her debt. The only risk to her is that if I miss a payment then her credit score will be affected. Is that true, can you guys please confirm this? 

Rate is high at the moment that's why I don't want to refinance. 

 If the situation was reversed, you would want you name off the loan ASAP.

Your post reads like "I don't want to suffer (a higher rate) so I'll make her suffer (diluted credit and higher risk).  You may not have intended that sentiment, but that's exactly what it is.

Do the right thing.  Make refinancing your highest priority and get her off the loan.

Cheers,

Randy