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Can I pay for Attorney fees in refinance?

Updated: Nov 4, 2022

Everyone knows (or if they don’t, they will find out) that a GREAT attorney is needed if you are going through a divorce. This is not the time to be bargain shopping or doing any of the DIY divorce specials. They will spell trouble for you down the road. I know because I have been helping clients in divorce cases for 20 years. My company specializes in helping people understand the process and wade through the fog of refinancing when they are going through a divorce.


Having one of the best attorneys looking out for you is critical even if you are amicable.

The first thing a great attorney will ask for is a deposit retainer to start the process. Most people don’t have a specific savings account to pay for a divorce, so they are strained to pay the entire legal bill.


Did you know if you are keeping the house and refinancing to pay your ex his or her share of equity, you can include attorney fees in the loan?


What? Isn’t that a cash out?


No, if it is done right, you can roll the attorney bills into the refi using a disbursed Owelty also called a “spousal buyout.”


They average cost of a divorce is $15,600 without kids. The average cost with kids is $23,500. According to https://www.findlaw.com/state/texas-law/divorce-in-texas--how-much-will-it-cost-you.html#:~:text=The%20average%20cost%20of%20a,cost%2C%20according%20to%20USA%20Today.

I have seen many clients put legal fees on a high interest credit card and struggle with that debt. The smarter way is to include in your buyout of the other party. But make sure you have a Divorce Lending Specialist who understands how to do it. It is not a cash out which limits your LTV and costs more in fees.


This makes your attorney happy because s/he will be paid and you will be happy with cash flow.



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