HerMoney with Jean Chatzky: Divorce Mailbag Episode Summary

Release Date: July 18, 2025
Episode Title: Divorce Mailbag: “Can I get my ex off the mortgage without refinancing?”
Host: Jean Chatzky
Guest: Erin Levine, Founder of Hello Divorce

Introduction

In this special mailbag episode of HerMoney, Jean Chatzky welcomes Erin Levine from Hello Divorce to address listeners' pressing questions about navigating the financial complexities of divorce. Erin brings her expertise to help women manage their finances thoughtfully and effectively during and after separation.

1. Preparing for a No-Asset Divorce

Listener's Concern: An anonymous listener is preparing for a no-asset divorce, where there are minimal shared assets and significant communication challenges with a non-cooperative spouse. She seeks practical advice beyond legal disclosures, especially regarding co-owning a business and managing credit card debts.

Key Discussions:

• Strategic Preparation: Erin commends the listener for her proactive steps, such as selling personal assets, paying off joint bills, and preparing to sign over business ownership.

  "You are already so ahead of the curve by doing all this strategic preparation." (04:18)

• Credit Management: Erin emphasizes the importance of pulling a credit report to identify any surprises and gathering all business financials. She advises on managing credit card debts by paying them down to protect personal credit.

  "Whatever exists at the time of separation is what's usually split mostly 50/50, but not always." (07:10)

• Mediator Selection: Choosing a certified divorce financial analyst is recommended over a traditional lawyer to ensure fair and practical financial divisions.

  "You don't necessarily want to work with a lawyer mediator because there's a lot of important financial considerations that most lawyers aren't trained for." (06:23)

• Legal Involvement: Erin clarifies that involving a lawyer is optional and often unnecessary if a financial mediator is used effectively.

  "You can use Hello Divorce to automate all of your legal and financial forms and logistics." (06:32)

2. Filing Taxes as a Divorced Parent

Question from Ali: Ali has finalized her divorce and is claiming one of her two minor children for taxes. She inquires about the benefits and drawbacks of filing as head of household.

Key Discussions:

• Eligibility for Head of Household: Erin outlines the prerequisites, including being unmarried as of December 31st, having the child live with her for more than half the year, and having a court order if applicable.

  "Assuming that you meet the qualifications, it's usually advantageous." (09:13)

• Tax Software Recommendation: Jean recommends using tax software like TurboTax to navigate the complexities and determine the most beneficial filing status.

  "Tax software is probably the easiest way to figure it out." (10:09)

• Financial Implications: Filing as head of household can affect eligibility for Roth IRAs, deductions, and other tax benefits, often making it more advantageous than other filing statuses.

3. Removing an Ex from the Mortgage Without Refinancing

Question from Natalie: Natalie is undergoing a divorce and seeks alternatives to refinancing to remove her soon-to-be ex-husband from their mortgage, especially in a high-interest rate environment.

Key Discussions:

• Loan Assumption: Erin introduces the concept of loan assumption, where Natalie could assume the mortgage herself without refinancing. While rare, it's a viable option worth exploring.

  "It's rare, but it's not as rare as financial institutions want you to think." (13:55)

• Strategies if Assumption Fails: Erin advises preparing for scenarios where loan assumption isn't possible, such as extending the mortgage term to buy time for refinancing when interest rates are more favorable or involving a third party to qualify for the loan.

  "Always think about what if they don’t cooperate with signing off on the deed?" (16:23)

• Buy Time Approach: Some individuals negotiate to keep their ex on the mortgage temporarily, allowing time for rates to decrease before refinancing becomes more feasible.

  "A lot of people are buying more time, giving time for rates to potentially go down." (16:23)

4. Financial Strategies After a Surprise Divorce

Question from Brittany: Brittany was unexpectedly divorced after ten years, is moving in with her parents, will receive monthly child support and a portion of savings. She seeks advice on managing her limited funds while supporting her child.

Key Discussions:

• Public Assistance: Erin suggests exploring public assistance options such as childcare subsidies, SNAP, Medicaid, and other available resources to bridge the financial gap.

  "There might be something available to you. Childcare subsidies, SNAP, Medicaid, I don't know." (17:48)

• Rebuilding Income: She encourages considering part-time, remote, or freelance work to gradually rebuild her income stream.

  "You can even look at Upwork or Fiverr to rebuild your income." (17:48)

• Financial Cushioning: Erin recommends depositing savings into high-yield accounts or CDs to preserve funds while planning next steps.

  "Deposit that savings into a high-yield savings account or CD, especially until I have a plan." (17:48)

• Health Insurance: Both Erin and Jean stress the importance of securing health insurance independently after divorce.

  "The lack of health insurance can take a bad financial situation to a worse financial situation overnight." (19:13)

• Support from Parents: Jean advises having an open conversation with parents to understand the extent of their support, including housing, childcare, and any financial contributions.

  "Have a really open and honest conversation with my parents and understand to what degree they are comfortable helping provide you with support." (18:57)

Concluding Insights

Jean Chatzky and Erin Levine provide compassionate and practical guidance for women navigating divorce. Key takeaways include:

• Proactive Financial Planning: Preparing ahead by managing debts, understanding asset distribution, and selecting appropriate mediators can significantly ease the divorce process.

• Utilizing Available Resources: Leveraging public assistance, financial planners, and support networks is crucial, especially when rebuilding post-divorce.

• Health and Legal Considerations: Securing health insurance and understanding the role of legal professionals in the financial aspects of divorce ensure comprehensive protection.

Notable Quotes

• "Whatever exists at the time of separation is what's usually split mostly 50/50, but not always." — Erin Levine (07:10)
• "You are already so ahead of the curve by doing all this strategic preparation." — Erin Levine (04:18)
• "Tax software is probably the easiest way to figure it out." — Jean Chatzky (10:09)
• "The lack of health insurance can take a bad financial situation to a worse financial situation overnight." — Jean Chatzky (19:13)

Additional Resources

For further assistance, listeners are encouraged to explore Hello Divorce's legal and financial planning services and consider subscribing to HerMoney's programs:

• Finance Fix: A four-week coaching program to rethink spending and find savings.
• Pre-Retirement Program: A six-week strategy-building course for personalized retirement planning.
• Investing Fix: A bi-weekly Zoom club focused on enhancing investing confidence and portfolio building.

Subscribe to HerMoney: HerMoney.com/subscribe
Hello Divorce: hellodivorce.com/hermoney

This summary encapsulates the key points and valuable insights from the "Divorce Mailbag" episode of HerMoney with Jean Chatzky, featuring Erin Levine of Hello Divorce. For comprehensive advice tailored to individual circumstances, listeners are encouraged to consult with financial and legal professionals.