A straight answer
Can I refinance or use a HELOC to buy out my spouse’s share of the house?
The direct answer
Yes, a refinance or a home equity line can fund the buyout, and I arrange both. Your income must carry the loan on its own, and the agreement must be in writing.
You are not stuck, and a divorce with a house in the middle of it is a heavy thing to carry. The deadline in the agreement does not care. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente. The financing part is the part I can make simple, and title and the old mortgage are separate steps from the money.
Here is what happens next. You text me the agreed number and whether the agreement is signed, I ask a few questions about the home and your income, and I tell you honestly whether a line, a refinance or neither is the right fit. No credit pull happens from a conversation. I work with homeowners in California, Utah, Oregon and Arizona, and eligibility depends on the property, your credit and your income.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-19
No impact on your credit score for the first look. It is a soft credit pull. Texts go to Zach's cell.
What has to be true
The buyout number is agreed, or close to it, in writing. Financing calculated against a number that later moves is wasted effort.
Your own income carries the new loan by itself. Support income counts only once it is documented the way the program allows.
You are the one keeping the home, and the agreement says who gets title. On a refinance, Fannie Mae’s guide requires that “all parties must sign a written agreement that states the terms of the property transfer.”
What the lender checks
Your income and credit, on your own. This is the part that decides most files.
The home’s value and how much is already borrowed against it, using the lender’s valuation.
The agreement itself. For a refinance sold to Fannie Mae, a buyout of a co-owner “as a result of a divorce settlement or dissolution of a domestic partnership” is treated as a limited cash-out refinance when the property was jointly owned for at least the twelve months before the new loan funds, and the spouse keeping the home “may not receive any of the proceeds from the refinancing.” Other programs run their own rules, and a home equity line is a second loan, not a refinance.
Limits
Funding the buyout, changing title, and releasing your former spouse from the existing mortgage are three separate steps. A home equity line funds the buyout and leaves the first mortgage exactly as it is, with both names still on it. A refinance replaces that mortgage in your name alone. Which one fits depends on whether the old mortgage is worth keeping and whether release is required by the agreement.
This page states no rate, payment, fee or loan size.
Nothing here is legal or tax advice. How your community property is characterized and divided is for your attorney and, where it applies, your tax professional. Confirm every step of the agreement with them before you rely on it.
Self-employed and buying out your spouse?
Yes. I offer divorce buyout financing for self-employed homeowners, by refinance or by home equity line.
Your own income has to carry the new loan.
If your returns understate the business, I offer loans and HELOCs qualified on 12 months of personal or business bank statements instead of tax returns. The bank statement loan page and the self-employed HELOC page explain the method.
If the divorce changes your share of the business, tell me the new share, because Fannie Mae treats an owner of a quarter or more of a business as self-employed.
There are two jobs here, and they are separate.
The first job is funding the payout to your spouse.
A home equity line can fund it and leaves the first mortgage, with both names on it, as it is.
The second job is releasing your spouse from the existing mortgage.
The CFPB says a divorce decree or property settlement "doesn't change the fact that a creditor can still collect from anyone whose name appears as a borrower on the loan or debt" (CFPB).
It also says "taking your name off a home or vehicle title doesn't take your name off the mortgage."
A refinance in your name alone replaces the old mortgage that carries both names.
What California law says about the share
California is a community property state. Family Code section 760 says: “Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.”
On division, Family Code section 2550 says that except by written agreement of the parties, oral stipulation in open court, or as the code otherwise provides, the court “shall ... divide the community estate of the parties equally.” How that applies to your home, including any separate-property contribution, is a question for your attorney.
What Arizona law says about the share
Arizona is also a community property state. Arizona Revised Statutes 25-211(A) says: “All property acquired by either husband or wife during the marriage is the community property of the husband and wife,” with exceptions for property “acquired by gift, devise or descent” and property acquired after a petition for dissolution, legal separation or annulment is served, if the petition results in a decree.
On division, A.R.S. 25-318(A) says the court “shall assign each spouse’s sole and separate property to such spouse” and, with one statutory exception, “shall also divide the community, joint tenancy and other property held in common equitably, though not necessarily in kind, without regard to marital misconduct.” Equitably is not the same word as equally. Ask your attorney what it means for your home.
Utah and Oregon divide marital property under their own statutes, which this page does not quote. Your attorney there answers the share question; I answer the financing one.
Utah and Oregon
How Utah and Oregon divide a home in a divorce is not summarized on this page. Ask a family law attorney in your state. I handle the financing once the agreement is in writing.
Questions people ask next
Do lenders treat a spousal buyout as a rate-and-term refinance or a cash-out refinance?
For loans sold to Fannie Mae, a buyout of a co-owner in a divorce is treated as a limited cash-out refinance when the property was jointly owned for at least the twelve months before funding, all parties sign a written agreement on the transfer, and the spouse keeping the home takes none of the proceeds. Other programs have their own rules. I tell you which one your file falls under before anything is submitted.
I have a deadline in the agreement to refinance. What if I cannot qualify alone?
Say so early. The file turns on your own documented income, and support income counts only once it is documented the way the program allows. If a refinance does not fit, a line, a different program, or a conversation with your attorney about the deadline are the honest next steps. I would rather tell you that in the first week than in the last.
Does my spouse have to sign anything for me to get the loan?
On a refinance, the program will want the written agreement that states the terms of the transfer, and title has to end up in your name. A quitclaim or interspousal transfer deed is usually part of that, and your attorney handles it. On a line, title still matters, because the lender lends against the home as it is owned.
Is the equity split fifty-fifty in California?
The statute says the court divides the community estate equally unless the parties agree otherwise in writing or stipulate in court. Whether part of the home is separate property, and how contributions are credited, is exactly the kind of question your attorney answers. This page quotes the statute; it does not apply it to your case.
Is Arizona different from California?
Both are community property states, and both statutes are quoted above. Arizona’s division statute says “equitably, though not necessarily in kind,” while California’s says “equally.” Ask your attorney what that difference means for your settlement.
Does a new loan take my former spouse off the old mortgage?
A refinance replaces the old mortgage with a new one in your name, which is how the release usually happens. A home equity line does not; the first mortgage and its two names stay. Your servicer can tell you what it offers on the existing loan, and the situation page walks through the order of steps.
Does my spouse have to sign if the line closes before the divorce is final?
In California and Arizona, yes, if the home is still community property when the line closes. California Family Code 1102(a) requires both spouses to join in an instrument by which community real property is "encumbered," and Arizona's A.R.S. 25-214(C)(1) requires "joinder of both spouses" for any "encumbrance of an interest in real property." Your attorney can tell you whether the home is community property and when that changes. In Utah and Oregon, ask a family law attorney in your state.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Which page is this?
Divorce home buyout. Paying the agreed number, getting a name off the deed, and getting a name off the loan are separate problems with separate decision makers. Financing solves one of them.
How can I buy out my spouse and resolve the mortgage?
That page has the tradeoffs and the same next step: the options check with no impact on your credit score for the initial check.
Sources and checked dates
Sources: Confirmed by Zach, October 19, 2026 (9:29 PM PT, via the Chief of Staff) (checked 2026-10-19) · CFPB, Can a debt collector contact me about a debt after a divorce? (last reviewed April 14, 2023) (checked 2026-10-19) · Fannie Mae Selling Guide, B3-3.5-01, Underwriting Factors and Documentation for a Self-Employed Borrower (12/13/2023) (checked 2026-10-19) · Confirmed by Zach, October 17, 2026 (checked 2026-10-17) · Confirmed by Zach, September 2026 (checked 2026-09-27) · Supplied by Zach, September 9, 2026 (checked 2026-09-09) · California Family Code 760 (checked 2026-09-26) · California Family Code 2550 (checked 2026-09-26) · Arizona Revised Statutes 25-211 (checked 2026-09-26) · Arizona Revised Statutes 25-318 (checked 2026-09-26) · Fannie Mae selling guide, B2-1.3-02, Limited Cash-Out Refinance Transactions (checked 2026-09-26) · Fannie Mae, Changing or Transferring Ownership of a Home (checked 2026-09-10) · CFPB research report, Homeowners face problems with mortgage companies after divorce or death of a loved one (checked 2026-09-10) · CFPB, What is a HELOC? (checked 2026-09-27) · California Family Code 1102 (California Legislative Information) (checked 2026-09-27) · A.R.S. 25-214 (Arizona State Legislature) (checked 2026-09-27).
Show each claim on this page, what it depends on, and the date it was checked (16)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Zach offers financing for these self-employed situations: a HELOC to pay off an IRS tax lien; mortgage income for S corporation owners (W-2 wages, K-1 income and distributions); a HELOC to pay off business loans and business credit cards; a divorce buyout for a self-employed homeowner; a DSCR cash-out refinance of a rental qualified on its rent; business funds for a down payment; a HELOC after a drop in self-employed income; combining a spouse's W-2 income with bank statement income; a mortgage when the business pays a debt in the owner's name; seasonal business income; bank statement loans when real business expenses are lower than the expense factor; and a mortgage when a self-employed owner moves a business into California, Utah, Oregon or Arizona. He arranges each as a broker. | Confirmed by Zach, October 19, 2026 (9:29 PM PT, via the Chief of Staff) | 2026-10-19 |
| CFPB, Can a debt collector contact me about a debt after a divorce? (last reviewed April 14, 2023): "A divorce decree or property settlement may allocate debts to a specific spouse, but it doesn't change the fact that a creditor can still collect from anyone whose name appears as a borrower on the loan or debt." It adds that "taking your name off a home or vehicle title doesn't take your name off the mortgage or auto loan and sending creditors a copy of your divorce decree doesn't end your responsibility on a joint account." | CFPB, Can a debt collector contact me about a debt after a divorce? (last reviewed April 14, 2023) | 2026-10-19 |
| Fannie Mae Selling Guide B3-3.5-01, Underwriting Factors and Documentation for a Self-Employed Borrower (12/13/2023): an individual who owns a quarter or more of a business "is considered to be self-employed." "The following factors must be analyzed before approving a loan for a self-employed borrower: the stability of the borrower's income, the location and nature of the borrower's business, the demand for the product or service offered by the business, the financial strength of the business, and the ability of the business to continue generating and distributing sufficient income to enable the borrower to make the payments on the requested loan." The analysis must "measure year-to-year trends for gross income, expenses, and taxable income for the business". The lender may verify income with signed federal returns "(both individual returns and in some cases, business returns) that were filed with the IRS for the past two years". It may waive business returns when the borrower uses personal funds for the down payment, closing costs and reserves, "has been self-employed in the same business for at least five years", and the individual returns "show an increase in self-employment income over the past two years". "When a borrower is using self-employment income to qualify for the loan and also intends to use assets from their business as funds for the down payment, closing costs, and/or financial reserves, the lender must perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business." "To assess the impact, the lender may require a level of documentation greater than what is required to evaluate the borrower's business income (for example, several months of recent business asset statements in order to see cash flow needs and trends over time, or a current balance sheet)." "When co-borrower income that is derived from self-employment is not being used for qualifying purposes, the lender is not required to document or evaluate the co-borrower's self-employment income (or loss)." | Fannie Mae Selling Guide, B3-3.5-01, Underwriting Factors and Documentation for a Self-Employed Borrower (12/13/2023) | 2026-10-19 |
| Zach offers loans qualified on 12 months of bank statements instead of tax returns, at any loan size. He qualifies the borrower on either the personal or the business bank account, whichever shows the larger average monthly deposits over the past 12 months, and business-account deposits get an expense factor. | Confirmed by Zach, October 17, 2026 | 2026-10-17 |
| Zach arranges a home equity line for self-employed owners that can be qualified on bank statements, which reads deposits instead of the net income on filed returns. | Confirmed by Zach, September 2026 | 2026-09-27 |
| Zach reports placing loans through more than one wholesale lender and program via his broker channel: the standard home equity line described on this site, plus conventional, government, bank statement and investment-property options. Individual lender names are kept off the public pages until the executed broker agreement for each is on file (California 10 CCR 2848(a)(3)). | Supplied by Zach, September 9, 2026 | 2026-09-09 |
| California Family Code section 760: “Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.” | California Family Code 760 | 2026-09-26 |
| California Family Code section 2550: “Except upon the written agreement of the parties, or on oral stipulation of the parties in open court, or as otherwise provided in this division, in a proceeding for dissolution of marriage or for legal separation of the parties, the court shall ... divide the community estate of the parties equally.” | California Family Code 2550 | 2026-09-26 |
| Arizona Revised Statutes 25-211(A): “All property acquired by either husband or wife during the marriage is the community property of the husband and wife except for property that is: 1. Acquired by gift, devise or descent. 2. Acquired after service of a petition for dissolution of marriage, legal separation or annulment if the petition results in a decree of dissolution of marriage, legal separation or annulment.” | Arizona Revised Statutes 25-211 | 2026-09-26 |
| Arizona Revised Statutes 25-318(A): in a proceeding for dissolution, annulment or legal separation, “the court shall assign each spouse’s sole and separate property to such spouse,” and, except as provided in section 25-318.02, “shall also divide the community, joint tenancy and other property held in common equitably, though not necessarily in kind, without regard to marital misconduct.” | Arizona Revised Statutes 25-318 | 2026-09-26 |
| Fannie Mae’s selling guide, B2-1.3-02: “A transaction that requires one owner to buy out the interest of another owner (for example, as a result of a divorce settlement or dissolution of a domestic partnership) is considered a limited cash-out refinance if the secured property was jointly owned for at least 12 months preceding the disbursement date of the new mortgage loan.” It adds that “all parties must sign a written agreement that states the terms of the property transfer” and that “borrowers who acquire sole ownership of the property may not receive any of the proceeds from the refinancing.” | Fannie Mae selling guide, B2-1.3-02, Limited Cash-Out Refinance Transactions | 2026-09-26 |
| Fannie Mae’s homeowner guidance on changing or transferring ownership of a home distinguishes assuming a mortgage from being released from liability on it. | Fannie Mae, Changing or Transferring Ownership of a Home | 2026-09-10 |
| The CFPB has published a research report on the problems homeowners face with mortgage companies after a divorce or the death of a loved one. | CFPB research report, Homeowners face problems with mortgage companies after divorce or death of a loved one | 2026-09-10 |
| The CFPB describes a HELOC as an open-end line of credit for borrowing repeatedly against home equity, says draw and repayment periods vary, and warns that falling behind could cost you your home. | CFPB, What is a HELOC? | 2026-09-27 |
| California Family Code 1102(a): both spouses "are required to join in executing an instrument by which that community real property or an interest therein is ... encumbered." | California Family Code 1102 (California Legislative Information) | 2026-09-27 |
| A.R.S. 25-214(C)(1) requires "joinder of both spouses" in "Any transaction for the acquisition, disposition or encumbrance of an interest in real property other than an unpatented mining claim or a lease of less than one year." | A.R.S. 25-214 (Arizona State Legislature) | 2026-09-27 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-19.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
Two ways to take the next step
No impact on your credit score for the first look. It is a soft credit pull. Texts go to Zach's cell.