'Will I Get Our House If I Divorce Him?' Asks Maine Woman As Her Millionaire Husband Controls All Finances But Gives Her $4,000 A Month

A woman in Maine is considering divorce and wondering if she'll get to keep the house. Her husband, a millionaire with trust-derived investments, covers all expenses and gives her $4,000 a month. She has saved $150,000 on her own but only earns $20,000 a year from freelance work. With divorce on the table, she's questioning what a fair division of assets would look like.

Maine's Divorce Laws and Asset Division

According to MarketWatch's Quentin Fottrell, who answered this woman’s question, Maine follows an equitable distribution model, meaning assets are divided fairly but not always equally. While the house is a shared asset with $30,000 left on a $400,000 mortgage, the husband's investment accounts were originally trust funds given to him before marriage. That means they may not be considered marital property. Instead, she would likely receive a portion of marital assets, plus potential spousal and child support.

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A judge may allow her to stay in the house until their children leave for college, but unless she can buy out her husband's share, selling and splitting the proceeds 50/50 is also a possibility.

Why Refinancing Matters in a Divorce

However, if she somehow gets to keep the house, she will likely need to refinance the mortgage in her own name. Refinancing removes an ex-spouse from the loan and ensures that only the person keeping the home is financially responsible, Fottrell wrote. 

Refinancing after divorce can be beneficial in several ways. If interest rates have dropped or her credit score has improved, she may secure a lower rate, reducing monthly payments. Adjusting loan terms could extend the repayment period, making payments more manageable. A refinance would also allow her to remove her ex-husband from the mortgage, giving her sole financial responsibility for the property. Additionally, a cash-out refinance could provide the funds needed to buy out her husband’s share of the home.

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However, according to Fottrell, she would need to prove she has enough income to qualify for the refinance. Given her earnings, this could be a challenge unless she secures significant alimony or a lump-sum settlement.

If she's unable to refinance, she and her ex-husband would remain legally responsible for the mortgage. This could create financial complications, particularly if one of them stops making payments. In this case, she has a few options:

• Selling the house and splitting proceeds
• Exploring alternative loan options
• Negotiating continued joint ownership for a set period

In this case, the woman's best bet is to consult a lawyer to negotiate spousal support, asset division, and housing arrangements. Keeping the house might be possible, but only if she can afford ongoing costs or secure refinancing. Otherwise, selling and moving on may be the best financial choice, Fottrell wrote. 

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