How to Keep Your House in a Colorado Divorce

Divorce often raises one of the biggest financial questions: Can you keep the house? For many, the home isn’t just a place to live, it’s tied to stability, long-term investment, and financial security. But with today’s high interest rates, making the wrong move, like refinancing, can cost you tens of thousands of dollars.

Most people assume they’ll have to sell or refinance to remove a spouse’s name, but that’s not always true. Divorce mortgage assumption and other legal options may allow you to stay in the home while keeping your current low interest rate. Before making any decisions, it’s critical to have a clear financial strategy.

Here’s how you may be able to keep your home without unnecessary costs:

• Some loans allow a mortgage assumption, keeping your current interest rate.
• There are ways to transfer ownership without selling or refinancing.
• Working with the Divorce CFO can save you tens of thousands by planning with a proven process.

Can You Keep the House After Divorce Without Refinancing?

Refinancing is the most common way to remove a spouse from a mortgage, but it’s rarely the best financial move. If you bought your home when rates were low, replacing a 3% mortgage with a new loan at 7% or higher could add hundreds to your monthly payment. Over time, that increase could cost you tens of thousands of dollars.

The good news is that there are ways to keep the home without taking on a new, more expensive mortgage. The key is knowing what your loan allows and whether a mortgage assumption or modification is an option.

This is why talking with the Divorce CFO is essential. Before assuming your only choice is refinancing, a full mortgage feasibility review will break down your best options, potentially saving you a massive amount of money.

What Are Your Options for Keeping the Home?

Depending on your financial situation and the type of loan you have, there are multiple ways to keep your home after divorce without taking on an expensive new mortgage.

Some of the most common strategies include:

• Mortgage assumption – If your loan allows it, you can take full responsibility for the mortgage without changing the interest rate.
• Loan modification – Some lenders will allow changes to the mortgage structure while keeping the existing rate and terms.

If assumption or modification isn’t an option, there may still be ways to structure a buyout agreement that keeps the home in your name without unnecessary costs. Without reviewing these possibilities, many divorcing homeowners make costly decisions that could have been avoided.

How Divorce Mortgage Assumption Works

A divorce mortgage assumption allows one spouse to take full ownership of the home while keeping the existing mortgage. Instead of replacing the loan, the lender approves a transfer of responsibility, keeping the interest rate, balance, and monthly payments unchanged.

This process isn’t automatic, and not every loan qualifies. However, government-backed loans such as FHA, VA, and certain conventional loans do allow assumptions. Even when the lender requires approval, many homeowners qualify if they take the right steps.

The biggest mistake people make is assuming they don’t qualify without checking. A consultation with the Divorce CFO will show exactly what’s possible and how to secure the best financial outcome.

How Much Can You Save by Keeping Your Current Loan?

The financial difference between keeping your current mortgage and refinancing is massive. Let’s say you have a $400,000 loan at 3% interest. Your monthly principal and interest payment is around $1,686. If you refinance at today’s rates, even at 7%, that payment jumps to $2,661—an increase of nearly $1,000 per month.

Over the next 10 years, that difference adds up to over $100,000 in additional payments. That’s money that could be saved, invested, or used to create long-term financial stability.

This is why planning with a professional, like the Divorce CFO, is critical. The wrong decision could cost you six figures, while the right strategy could keep you financially secure.

What If You Can’t Assume the Loan?

If an assumption isn’t possible, there are still ways to keep the home without unnecessary financial loss. Lenders sometimes approve modifications, and structured buyout agreements can also provide solutions.

Even when assumption isn’t available, options exist that most homeowners aren’t aware of. The worst thing you can do is rush into a refinance without exploring alternatives. A mortgage feasibility review will lay out every possibility so you can make the best financial decision.

Talk to the Divorce CFO Before Making a Costly Mistake

Keeping your home in a divorce is about more than just staying in familiar surroundings. It’s a major financial decision that can either save or cost you tens of thousands of dollars. The wrong move could mean losing your low interest rate, taking on unnecessary debt, or paying far more than necessary.

Before making a decision that impacts your future, schedule a consultation with the Divorce CFO. With expert guidance, you’ll get a clear plan, avoid unnecessary costs, and keep as much of your money as possible.