Refinancing Your Mortgage After Divorce in Georgia

A quitclaim deed removes your ex-spouse's name from the property title. But it does absolutely nothing about the mortgage. If both names are on the loan, both are still 100% liable for every payment — regardless of what the divorce decree says. Your lender wasn't a party to your divorce case and isn't bound by the judge's orders.

The only way to fully separate the mortgage is to refinance into one spouse's name alone. Here's how that works in Georgia, the correct order of operations, and the deadlines that matter.

Title vs. Debt: Two Separate Problems

Most people conflate these, and it costs them. Property title (who owns the house) and mortgage debt (who owes the bank) are legally independent:

• Quitclaim deed — transfers ownership on the title. Your ex signs away their interest in the property.
• Mortgage refinance — replaces the joint loan with a new loan in one spouse's name only, releasing the other from liability.

Executing a quitclaim deed without refinancing means your ex is off the title but still on the hook for the loan. If you stop making payments, the lender comes after both of you. If your ex needs to qualify for a new mortgage, the joint debt counts against their debt-to-income ratio until the refinance closes.

Step 1: Apply for an Individual Refinance

The retaining spouse applies for a new mortgage based solely on their income, credit score, and assets. The lender evaluates whether you qualify on your own. Key factors:

• Income verification — W-2s, tax returns, and pay stubs for the past two years
• Credit score — most conventional loans require 620+; FHA loans allow 580+
• Debt-to-income ratio — typically must stay below 43%
• Home appraisal — the lender orders a new appraisal to confirm the property's current market value supports the loan amount

If you received alimony or child support in the decree, many lenders count that as qualifying income after you've received it consistently for 6+ months.

Closing costs for a refinance typically run 1% to 3% of the loan balance. On a $300,000 mortgage, that's $3,000 to $9,000.

Step 2: Execute the Quitclaim Deed

Once the refinance closes (or simultaneously, depending on your attorney's recommendation), the transferring spouse signs a quitclaim deed to convey their interest in the property.

The quitclaim deed requires:

• Exact legal names of both parties as they appear on the current deed and divorce decree
• The full legal description of the property (from the original warranty deed — a street address alone isn't sufficient)
• The grantor's signature witnessed by two people: one unofficial witness and one licensed notary public

Important since January 2025: Under House Bill 1292, all self-represented filers in Georgia must electronically file real estate deeds. County clerks will reject paper deeds submitted by pro se filers. File through the GSCCCA eFiling portal.

Step 3: File the PT-61 Form

Before the deed can be recorded, you must complete the electronic PT-61 Real Estate Transfer Tax Declaration through the GSCCCA portal. Property transfers incident to divorce are completely exempt from Georgia's transfer tax under O.C.G.A. § 48-6-2 — but filing the form is still a mandatory administrative step.

Print the PT-61 confirmation and submit it alongside the digitized quitclaim deed to the Clerk of Superior Court in the county where the property is located. The flat recording fee is $25 per deed.

Timeline and Order of Operations

The entire process typically takes 30 to 60 days from application to close.

What If You Can't Qualify Alone?

If the retaining spouse's income or credit can't support the mortgage solo, options include:

• Sell the property and split the proceeds per the decree
• Negotiate a loan assumption — some lenders (particularly FHA and VA loans) allow one spouse to assume the existing loan, though approval requirements are strict
• Add a co-signer — a parent or family member with strong credit can co-sign the refinance
• Request a modification period in the decree — the court can set a deadline (often 6–12 months) for the retaining spouse to refinance, with a forced sale triggered if they can't

Protect Yourself Until the Refinance Closes

Until the joint loan is paid off through refinancing, both names remain on the mortgage. To protect your credit:

• Set up payment monitoring so you know immediately if a payment is missed
• Keep copies of all payment confirmations
• Document any decree provisions requiring the retaining spouse to make payments
• If payments stop, you may need to file a contempt petition in Superior Court

The Georgia Post-Divorce Guide includes a real estate transfer checklist covering quitclaim deed execution, PT-61 filing, and refinance coordination — with step-by-step instructions for the GSCCCA eFiling process.

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