refinance during divorce

[chewy]

What is the name of your state? Massachusetts
When i bought my house in 1995 my brother in law co-signed the mortgage.He put NO MONEY into the house.Now I am fivorcing his sisiter and want to refinabce to get a better rate and some dash out.I offered to put my wife on the deed but she refuses to sign the paperwork.She wanted me to go with another company but I got a better deal elsewhere.Now she's just busting my chops.Her brother wants off the mortgage cuz he's buying his own very expensive house.He wants to sign his "share" over to his sister.Can he do that?Can I refinance without him?How can I prove he put no money into the house?Should I file for divoece before the refinancing?I know I will be paying her rent and that I will pobably have to split any cash I recieve with her.
HELP

 

[NoDimBulbs]

First, you better be aware of the rights your wife - soon to be ex - may have in the property if it is the marital home. That's an issue that would need to be resolved. On the other issue - that of the financing of the property: Financial institutions like security, and so they are probably not going to be too excited about the suggestion that drops the 'ol bro-in-law off the mortgage. See there are two pockets they could recover from right now if you default, removing him leaves only you, and possibly with someone else (the soon-to-be-ex) with a better claim over some of the equity than they might have. I'd give the brother-in-law the number for the mortgage-holder and tell him to get the info for himself at this stage. As for his "share"...I assume he's not talking about equity? Is he a part-owner? or just a guarantor? It's up to him to prove he's made improvements or put money into the house in order for him to claim an interest. Keep in mind, it's a pretty hard job for you to prove he didn't contribute (impossible for you to prove).
Don't forget either, when you separate and file for divorce, any transfers of property you might make could be scrutinized, and, if detrimental to the spouse, could be found to have been fraudulent transfers. It seems you are already contemplating the divorce, and so you are in pretty risky business making any major financial decisions before the property division is settled. Of course, Massachuchetts law will dictate to you what you can or cannot do SPECIFICALLY. Funny business with finances is something you want no part of in your divorce proceedings so BE CAREFUL and get legal advice in your state - it will be worth it.


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This is my opinion, if you don't like it - then OK.
This is not legal advice either. Get an attorney if you want legal advice.