Most people assume that if you want to keep the house in a divorce, you have to refinance into your name alone. That’s often part of the equation. But it’s not always the only option.
Right now, with mortgage rates around 6.5%, that assumption is worth questioning. If you locked in a 3% rate a few years ago, trading it for a new mortgage at today’s rate could mean hundreds more per month on the same balance.
This is for informational purposes only. I’m not a lawyer or a financial advisor. Divorce involves legal and financial decisions specific to your situation. Talk to a qualified family law attorney and a CPA before making any decisions about the house.
Why refinancing isn’t your only path to keeping the house in a Florida divorce
When you refinance to buy out your spouse, you’re taking out a brand-new mortgage in your name alone. That loan comes with today’s rate. Keeping the house in a Florida divorce doesn’t automatically mean refinancing. There are other ways to compensate a spouse for their equity share, and some of them let you hold onto the lower rate you already have.
Option 1: Pay them out in cash
If you have savings or liquid cash available, you can pay your spouse their share of the equity directly. No new debt. No loan application. No rate change.
You agree on the home’s value, usually through a formal appraisal or a number you both accept. You calculate the equity. You pay your spouse their portion in cash. The deed transfers into your name and a quitclaim deed removes them from the title. Your existing mortgage stays exactly as it is.
Option 2: Take out a personal loan
No cash on hand but don’t want to refinance? A personal loan is worth looking at. You borrow enough to cover your spouse’s equity share, pay them out, and leave your original mortgage untouched. Personal loan rates run higher than mortgage rates, but you’re only borrowing the equity amount, not the full home value. The larger debt stays at the lower rate.
For someone sitting on a 3% mortgage who would otherwise be trading it for 6.5%, the math sometimes favors a higher-rate personal loan on a smaller balance. Run both scenarios before you decide.
What refinancing does that the other options can’t
A quitclaim deed takes your spouse off the title. It does not take them off the mortgage. Refinancing is the only way to remove your spouse from the loan itself. Until that happens, your lender still considers both of you liable.
According to Bankrate, average 30-year fixed rates are around 6.5% in 2026. I’ve worked with clients in Clearwater and throughout Pinellas County where the mortgage liability wasn’t clearly resolved in the divorce decree. It caused complications years later. If you’re going the cash or personal loan route, your attorney needs to address the mortgage in your settlement agreement. Don’t leave that piece loose.
Figuring out what makes sense for your situation
Start with the equity number. You need to know how home equity gets split in a Florida divorce to understand what you’re actually buying out. Then look at your cash position, income, and credit, and run the numbers on each option.
Also worth reviewing: who’s responsible for the mortgage during a divorce. That piece matters regardless of which path you choose.
Again: this is for informational purposes only. I’m not a lawyer or a financial advisor. Work with qualified professionals before making any decisions about your home in a divorce.
Questions about keeping the house in a Florida divorce
Do I have to refinance to keep the house after a divorce in Florida?
Not always. Refinancing removes your spouse from the mortgage, but it’s not the only way to compensate them for their equity. A cash buyout or a personal loan can both allow you to pay out their share while keeping your existing mortgage rate in place. Talk to a family law attorney about what your specific agreement requires before assuming refinancing is the only path.
What happens if my spouse comes off the title but stays on the loan?
Nothing changes with the loan. A quitclaim deed removes someone from the ownership record. It does not remove them from the mortgage obligation. Your lender still holds both parties liable until the loan is refinanced into one name. Your attorney should address this directly in the settlement.
What if I can’t afford to buy my spouse out and selling isn’t an option right now?
Sometimes a deferred sale arrangement makes sense: one spouse stays in the home for a set period before it’s sold and proceeds are divided. What to expect when selling during a divorce can walk you through that process. Whatever the arrangement, your attorney needs to document it clearly in the decree.
Going through a divorce in Tampa Bay and trying to figure out the house?
I work with clients navigating divorce-related home decisions across Pinellas, Hillsborough, Pasco, and Hernando counties. Whether you’re in Clearwater or anywhere else in the Tampa Bay area, I can help you get clear on the real estate piece. The legal structure belongs with your attorney. The property value, the selling process, and the timeline, that’s where I come in.
A Helpful Next Step
If you’re working through a divorce and need a starting point on the house, let’s talk through your options.
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