'She Owns The Property But He's Still Got The Mortgage' — Dave Ramsey Says This 'Huge Mistake' During A Divorce Could Haunt Men For Years

If you've ever gone through a divorce — or know someone who has — you know the paperwork can feel endless. Between lawyers, court dates, and property settlements, it's easy to sign something just to move on. 

But according to financial expert Dave Ramsey, there's one move divorcing men should never make without a second thought — and your lawyer might not be waving the red flag.

In a Facebook post from his official account last week, Ramsey issued a no-nonsense warning:

"Most divorce attorneys make a huge legal error. I'm calling you boys and girls out."

Don't Miss:

• Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.
• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share!

He's talking about the all-too-common situation where the wife keeps the house — often because she's raising the kids — and the husband signs over ownership through a quitclaim deed. But while the man gives up his rights to the property, the mortgage in his name stays exactly where it is: on his credit report.

Ramsey breaks it down like this:

"Husband and wife get divorced. There's a $260,000 mortgage. Husband doesn't get to keep the house. Wife is gonna get the house because the kids are living in the house and the divorce attorney says, ‘Well, just part of the settlement is you're going to quitclaim your half of ownership to her.' So he fills out a one-page quitclaim as part of the divorce decree — boom. But guess what? Husband still has a $260,000 mortgage."

Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.

Fast-forward five years. The man wants to remarry and buy a house. But guess what?

"Can't do it. Still got a $260,000 mortgage in his ex-wife's name. She owns the property but he's still got the mortgage. Dumb."

Today's Best Finance Deals

Ramsey's advice? Make it clear in the divorce agreement that if one spouse is keeping the house, they need to either refinance and remove the other person's name — or sell it outright.

"You're getting a divorce and doing a quitclaim deed — force a refinance or force the sale of the house. One of the two."

He adds that this mistake happens constantly because divorce attorneys are just doing what's easy. "It's easy, but it's wrong," Ramsey says.

See Also: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000.

So what happens if the divorce decree says the husband must continue paying the mortgage — or the wife can't refinance on her own?

While Ramsey doesn't address that directly, here are a few common facts to consider:

• A divorce decree does not remove someone from a mortgage. Only refinancing or paying it off can do that.
• If one spouse stops making payments, the lender can go after whoever is still on the loan — regardless of who lives there.
• Courts may order one spouse to make payments, but that doesn't stop late payments from hurting both credit scores.
  
  

Bottom line? Don't assume signing over a house means you're free and clear. As Ramsey puts it, skipping the refinance is a "huge mistake" — and one that could quietly wreck your financial future long after the ink on the divorce papers dries. 

Of course, not every divorce looks the same. What's possible depends on your specific agreement — and sometimes, your options are limited.

Read Next:

• Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. 
• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share!

Image: shutterstock