California Asset Depletion Refinance Helps a Business Seller Complete a Divorce Buyout
After selling his business, a California homeowner used an asset depletion refinance to remove his former spouse from the mortgage within the deadline set by the divorce agreement.
Loan Snapshot
- State
- California
- Property Type
- Single-Family (Owner-Occupied)
- Loan Purpose
- Rate & Term Refinance
- Loan Amount
- $930,000
- Days to Close
- 28
Borrower profile, generalized to protect privacy: a recent business seller between ventures who also owns one investment property.
An actual closed transaction. Certain details have been generalized to protect client privacy.
The Situation
A California homeowner had recently completed a divorce and needed to refinance the former marital home to remove his former spouse from the existing mortgage, on a deadline written into the divorce agreement. He had also recently sold his business; the proceeds left him with substantial cash and investment assets, but no current W-2 income and no established self-employment history.
Why the Bank Said No
His bank's checklist required recurring employment income, and he was between income-generating ventures. The assets from the sale of his company, the low leverage he was requesting, and years of flawless payment history did not fit the form.
The Financing Approach
Eligible brokerage and cash assets were converted into a calculated monthly qualifying income through an asset depletion program. He was not required to liquidate the investments used to qualify. Conservative leverage and strong post-closing reserves supported the rate-and-term refinance, with title in his personal name.
The Outcome
The loan closed in March of 2025. The existing mortgage was paid off, his former spouse was removed from the financing, and the deadline established in the divorce agreement was met with room to spare.
Read more about how the underlying program works on our asset depletion loan program page.
See which investor loan programs fit your scenario
Answer a few quick questions about your property and goals; it only takes a couple of minutes.
The Borrower's Challenge
The divorce agreement required the borrower to remove his former spouse from the mortgage within a specific period. He had substantial assets from the sale of his company but no current W-2 income or established self-employment history.
The Loan Structure
An asset depletion rate-and-term refinance on the former marital home, with eligible brokerage and cash assets converted into calculated monthly qualifying income and title in the borrower's personal name.
How We Solved It
Underwriting verified the eligible assets and applied the program's income calculation without requiring the borrower to sell the investments used to qualify; conservative leverage and strong reserves carried the file.
The Result
The existing mortgage was paid off, the former spouse was removed from the financing, and the borrower met the deadline established in the divorce agreement.
Actual scenario; certain details have been generalized to protect client privacy. Individual results vary. This is not a commitment to lend, and past outcomes do not guarantee the terms, timing, or approval of any future loan.
Reviewed by Eddie Luhrassebi, Founder & CEO, NMLS #337071 | CA DRE #01230650
Last updated: July 16, 2026 · About the reviewer