# Divorce, Refinancing Home, and First-Time Home Buyer credit



## Santofimio (Oct 26, 2011)

Hello, I was wondering if anyone could offer any input on my situation. 

I'm soon going to be filing for a Divorce from my Wife. She has agreed to let me keep the house since there isn't much to gain from selling it. We purchased our house together in February 2009 but we weren't married until April 2010. We qualified for the first time home buyer credit of $8000, I received my $4000 with my 2008 income tax return, she received her $4000 with her 2009 income tax returns. The stipulation for the tax
credit is as follows: 
For home purchased in 2009, the credit does not have to be paid
back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

Since I don't want to wait until February 2012 to start the divorce process, I was concerned about either one of us having to pay back the $4000. I did find the following scenario listed on the IRS website:

S14. During their marriage, Taxpayer A and B purchased a home together and claimed the credit. Later they divorced and Taxpayer A transferred the home to Taxpayer B under the divorce decree. Taxpayer A did not keep any interest in the home. Are repayments waived for Taxpayer A?

A. If they purchased the home in 2009 or 2010, and Taxpayer B sells or stops using the home as her main home the home within 36 months after the purchase date, Taxpayer B must repay the entire amount of the credit if there is gain on the sale of the home.

The only difference in my situation would be that we purchased the home together before we were married. So I was wondering if I should wait before the divorce is final before I refinance in order to avoid my wife having to pay back the $4000, or if it was ok for me to refinance the house in my name before filing for Divorce.

I'm looking for any general advice or input from anyone who is or has been in a similar situation. Thanks
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## HerToo (Oct 3, 2011)

You need to share that information with your lawyer. It's a possible debt that needs to be assigned to the appropriate party. As for refinancing, I'd wait until the divorce is final since the refinance is likely to change your financial landscape during the divorce.

Just my thoughts. No experience involved.


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## Santofimio (Oct 26, 2011)

My W did say that it was ok for me to refinance after the divorce is final as long as its in the settlement paperwork etc. I just know that if I was in her position, I would want the house to be refinanced prior to divorce. That's the general advice I've seen on the web for the person that stands to lose the house.
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## nice777guy (Nov 23, 2009)

I'm also keeping the house. My wife's attorney told her to ask me to wait until AFTER the divorce to refinance. They seem to think I could somehow kick her out if I got her name taken off the deed - or somthing...?

Plus - I've been told that most mortgage loan officers will want you to wait until after the divorce before they work with you. I guess the idea being the you - as part of a "couple" may qualify now - but you as an individual will need to be able to make the payments after the divorce is final.

Of course - I could be wrong...


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