Refinancing After Divorce: Using Spousal Support to Qualify

TLDR: Spousal support can help you qualify for a refinance after divorce; but lenders need to see it’s consistent, documented, and expected to continue. Typically, that means six months of steady payments and proof it will last 36 months beyond closing. With the right preparation, spousal support can help you take full ownership of your home and move forward with confidence.

For many clients, refinancing after divorce is about more than numbers. It’s about reclaiming stability, taking ownership of your home, and moving forward with peace of mind.

When one spouse wants to stay in the home, refinancing is a critical step. It allows you to remove an ex from the mortgage, adjust the title, and align the loan with your current finances. Spousal support, when documented correctly, can be the bridge that makes this possible.

If you’re receiving support, lenders may count it as qualifying income. If you’re paying support, it affects your debt-to-income ratio. Understanding how lenders view spousal support helps you plan the best strategy for your refinance.

Where Spousal Support Fits Into Refinancing

Lenders consider spousal support legitimate income when it meets two simple standards:

1. The income is consistent and documented.
2. It will continue for a sufficient period in the future.

What you’ll usually need:

• Court order or divorce decree listing payment amount, schedule, and duration
• 6 months of bank statements showing on-time deposits
• Proof the payments will continue for at least 36 more months

Court-ordered support that’s paid regularly is generally treated like employment income when calculating your ability to manage the mortgage.

Qualifying Factors That Matter Most

Lenders focus on three key areas when deciding if spousal support counts toward your refinance:

1. Documented Payment History

Six months of consistent, on-time payments is the baseline. Lenders want to see regular deposits that match your decree.

2. Length of Future Support

The income must continue for at least 36 months. This gives lenders confidence that your finances will remain steady during the first years of your refinance.

3. Source and Consistency

Court-ordered payments are preferred. Voluntary or informal arrangements may not qualify. If your support isn’t formalized, now’s the time to make it official.

The 6-Month and 36-Month Rule for Spousal Support

Just like child support, spousal support is evaluated using the 6-month and 36-month rules—but in this case, it’s about refinancing an existing loan rather than buying a new home.

• 6-Month Rule: Confirms your income is steady and dependable. You’ll need six months of documented, on-time payments before lenders include it as qualifying income.
• 36-Month Rule: Confirms the income will last at least three years beyond closing. Shorter durations don’t count.

These rules are outlined in both the Fannie Mae Selling Guide and the HUD Single Family Housing Policy Handbook 4000.1, helping lenders ensure the income backing your refinance is stable, verifiable, and long-term.

Pro tip: Waiting until you meet these requirements strengthens your application and improves your approval options.

Timing Considerations

Timing matters. Apply too early—before you’ve built six months of payment history—and your support income won’t count. Wait until you’ve met the minimum history and confirmed it will continue for 36 months, and your lender can include it confidently.

Example:
If your divorce finalized in January and support began in February, refinancing in April is likely too soon. By August, with six months of proof, lenders can include that income.

How to Strengthen Your Application

Here are some practical ways to improve your refinance application when using spousal support:

1. Keep payments traceable.
   Direct deposits are easiest to verify. Avoid cash or untraceable apps if possible.
2. Organize your paperwork early.
   Collect bank statements, divorce decrees, and correspondence about payment terms ahead of time.
3. Clarify decree language.
   Ensure your decree clearly states start and end dates, with no ambiguous “temporary” language.
4. Avoid major financial changes.
   Don’t open new credit accounts or switch jobs right before refinancing. Lenders like consistency.
5. Work with a professional early.
   Having a specialist review your documentation can identify gaps before your lender does. As a CDLP® that helps divorcing homeowners, nationwide, I’m happy to set a time for a free consultation. 

Why Professional Guidance Matters

Divorce is emotionally heavy, and the last thing you need is financial stress. Refinancing after divorce requires coordination between your legal agreements and your mortgage strategy—and that’s where a professional can make a difference.

As a Certified Divorce Lending Professional (CDLP®), I help clients:

• Translate legal terms into lender-ready documentation
• Review timing and eligibility for spousal support
• Structure applications to meet underwriting standards

With guidance, refinancing can feel less like a hurdle and more like a fresh start.

Next Steps

If you’re thinking about refinancing after divorce, you don’t have to figure it out alone. With proper timing and documentation, spousal support can help you take control of your home and your financial future.

Fill out your info below to schedule a free consultation. Together, we’ll create a plan that protects your financial future and gives you peace of mind as you step into your next chapter.

FAQ

1. What if my spousal support is temporary or decreases?

If support ends or steps down within three years, lenders may not count it. You may need to qualify using other income.

2. Can I refinance before my divorce is finalized?

Most lenders require a finalized decree, but it’s smart to review options early so you’re ready once the agreement is official. In the right circumstances and proper guidance I’ve helped multiple divorcing clients refinance before the divorce is final. 

3. What if payments are made through apps like Venmo or Zelle?

Payments can count if they’re traceable and clearly from your ex. Direct deposits are simpler for lenders to verify.

4. How do lenders verify spousal support will continue?

They rely on your divorce decree or court order. The document must show payments lasting at least 36 months beyond closing.