How does refinancing work when one spouse wants to buy out the other's share of the matrimonial home?

A common way to handle a matrimonial home on separation is for one spouse to keep the property and refinance it to pay the other spouse for their share, effectively replacing joint ownership with sole ownership plus a new mortgage sized to fund the buyout. This generally requires the staying spouse to qualify for a new mortgage on their own income and credit, since lenders assess the refinance based on the person who will actually be responsible for it going forward, not the couple jointly as before.

Because this still involves dealing with the matrimonial home, the other spouse's cooperation and consent are needed as part of the process, both to release their interest and to allow the refinance and any related transfer of title into the staying spouse's sole name. This is usually worked out through a separation agreement or minutes of settlement setting out the buyout amount and terms, which then guides the actual conveyancing and mortgage paperwork. Because financing approval, the payout amount, and the timing all need to line up, anyone planning a buyout like this should start the mortgage qualification conversation with a lender early, alongside the legal and financial negotiations, rather than after the terms are already finalized.