I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I handle divorce mortgage situations regularly — confidentially, and with the goal of getting both parties a clean financial separation as quickly as possible. Call (800) 239-1103.
When a California marriage ends, the family home is almost always the most significant financial asset involved — and the most emotionally charged. Whether you want to keep the home, take your equity and move on, or need to remove your spouse from the mortgage, understanding your options early gives you negotiating leverage and prevents costly mistakes in the settlement.
Option 1: Equity Buyout Refinance — One Spouse Keeps the Home
This is the most common outcome. The spouse who wants to keep the home refinances into a new mortgage solely in their name. The new loan pays off the existing joint mortgage and pays the departing spouse their share of equity in cash at closing. At closing, a quitclaim deed is also recorded transferring the departing spouse’s ownership interest — so both the mortgage and title are clean. For this to work, the keeping spouse must qualify for the new loan on their individual income, credit, and DTI. I evaluate this confidentially and tell you whether you can qualify — and for how much — before you commit to a settlement structure that assumes a loan you can’t get.
Option 2: Sell and Split
If neither spouse can carry the home alone, or both prefer a clean financial break without the complexity of a refinance, the home is sold and proceeds split per the divorce agreement. In California’s market, equity accumulated over the last several years means many couples are splitting meaningful gains. This path requires no refinancing but does require both parties to cooperate on timing, listing, and sale process — which in contentious divorces requires clear language in the settlement agreement about who makes decisions and what happens if one party delays. I’m not a real estate attorney, but I’ve seen many of these go sideways and can refer you to attorneys who handle this well.
Option 3: Deferred Sale
Some couples defer the sale or buyout — keeping both names on the mortgage temporarily while children finish school, while waiting for the housing market to improve, or while one spouse builds individual qualifying income. This works legally, but carries real risk: both parties remain fully liable for the loan, and any missed payment affects both credit scores. If you defer, the settlement agreement must be crystal clear about who makes payments, what triggers the eventual sale or buyout, and what happens if the occupying spouse stops paying. Document everything.
California Community Property and Your Mortgage
California is one of nine community property states. Any asset — including home equity — acquired during the marriage is presumed owned 50/50, regardless of whose name is on the title or the loan. Even if only one spouse is on the deed, the other spouse generally has an equitable claim to the equity. Your family law attorney and your mortgage lender both need to understand this when structuring the buyout. I work closely with California divorce attorneys to ensure the mortgage piece of the settlement is financially executable — not just legally sound on paper.
Frequently Asked Questions — Divorce Mortgage Options California
What happens to the mortgage when you get divorced in California?
The mortgage doesn’t automatically change when you divorce — it remains the legal obligation of whoever signed the original loan, regardless of the divorce decree. A court order saying your spouse must make the payments doesn’t remove you from the mortgage; the lender didn’t sign that agreement. The only ways to remove a spouse from a mortgage are to refinance it into one name or to sell the property. Until one of those happens, both spouses remain on the hook for the debt, and both credit scores are affected by how the loan is managed.
Can I keep the house in a California divorce if I can’t qualify for the mortgage alone?
Sometimes — with the right structure. Documented spousal support or child support counted in your income can help. A non-occupant co-borrower (parent or family member) can be added to the refinance application even if they won’t live in the home. If you’re self-employed with strong cash flow but significant write-offs on your taxes, a bank statement loan qualifies you on deposits rather than taxable income. I review every divorce refinance case with fresh eyes — there are often paths that a quick bank rejection doesn’t reveal.
How long does a divorce mortgage refinance take in California?
A standard equity buyout refinance typically takes 21–30 days from application to close when documentation is in order. The main inputs needed: signed marital settlement agreement or court order, current paystubs and tax returns (or bank statements for self-employed borrowers), property information, and the existing mortgage payoff statement. Starting the process as soon as the settlement terms are agreed — even before the final decree — means you can close within days of the divorce being finalized. I move quickly on these specifically because clients need to close this chapter and move on.
See all divorce mortgage resources at DiVita Home Finance
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
