Posted on: 06th Apr, 2009 02:36 pm
can the cost of refinance due to divorce be deducted from community interest?...going through a refinance to buy out spouse's share. need to know whether the cost of refinancing (closing cost) can be deducted when determining what the community interest is worth. so far, we have the house appraised. from this appraised value, we are deducting the mortgage still owed and the amount i contributed using my separate fund (prior to marriage). can the cost of the refinance be deducted as well? the final equity value will eventually be divided equally.
Hi blau
Before refinancing the property, your spouse must have transferred the property in your name. After this transfer, it became your separate property. As it's your separate property, you won't be able to deduct the the closing costs from the community interest.
Thanks.
Before refinancing the property, your spouse must have transferred the property in your name. After this transfer, it became your separate property. As it's your separate property, you won't be able to deduct the the closing costs from the community interest.
Thanks.
The property has not been transferred to my name yet. He is planning to sign the quit claim during the same time I complete the refinance process. So technically, the house is still not my separate property. Therefore, can the closing costs still be deducted?
Hey blau,
You cannot refinance the property until it is transferred in your name. As the property is transferred, it becomes your separate property. So, I agree with Niicss that you won't be able to deduct the closing costs from the community interest.
You cannot refinance the property until it is transferred in your name. As the property is transferred, it becomes your separate property. So, I agree with Niicss that you won't be able to deduct the closing costs from the community interest.