The Quick Read: Yes, but only the money counts, and only once it is paid, sourced and sitting in the borrower’s own name. A decree or settlement agreement is paperwork, not an asset. Cash, brokerage holdings and retirement balances can support an asset-based mortgage after they are awarded, transferred and documented with statements, subject to underwriting.
- A decree proves where the money came from. It is not a balance the lender can count.
- Unpaid, disputed or still-to-be-divided awards do not count.
- Indiana law decides who gets what. The lender decides whether the resulting funds can be used.
- Money spent on a buyout or down payment cannot also be counted as qualifying assets.
- Qualifying on assets means no traditional personal-income documentation, pay stubs or employment verification. Every file is still fully underwritten.
What a Lender Sees in an Indiana Settlement
A lender sees account statements, not court orders. The decree matters because it explains a large deposit or transfer. It does not replace the balance itself.
Picture a borrower whose decree awards a $900,000 brokerage account. Until the account is retitled in the borrower’s name and shows statements, the lender has a promise on paper. After the transfer and seasoning, it has an asset.
This is also why a decree does not remove an ex-spouse from an existing loan. A quitclaim deed moves ownership of the house. It does not change who owes the bank. Removing a name takes a refinance, a lender-approved assumption or a payoff. Federal law, 12 U.S.C. § 1701j-3, limits a lender’s ability to call a loan due on certain family transfers, but it does not release anyone from the note.
Indiana Basics That Shape What You Receive
Indiana decides the split. Underwriting is the same here as anywhere else.
Under Indiana Code § 31-15-7-4, the court divides all property of both parties, regardless of when or how it was acquired, a rule Emerson Law calls the “one-pot” rule. Indiana also starts from a rebuttable presumption that an equal division is just and reasonable, as McNeely Law explains. Rebuttable matters. The split is a starting point, not a guarantee of 50/50.
Inheritances and premarital money are pulled into the pot, but courts may still award an inheritance to the spouse who received it, especially if it was kept separate, per Emerson Law’s marital property guide. A lender only sees the final allocation.
Which Settlement Pieces Count, and How?
Only seasoned, documented balances count. Each settlement piece is read differently.
| Settlement piece | How a lender reads it | What must be true |
|---|---|---|
| Cash equalization payment | Cash balance | Paid, deposited, sourced |
| Brokerage account | Securities balance | Retitled, statements on file |
| Retirement account | Retirement balance | Transferred into your own account |
| Home equity | Real-estate equity (depletion path only) | Property in your name |
| Unpaid or deferred award | A promise | Does not count |
| Support payments | Income, not an asset | Separate category |
Retirement money has its own mechanics. An IRA moves by a transfer incident to divorce, which the Internal Revenue Code treats as non-taxable under Section 408(d)(6), as FindCPA’s QDRO explainer describes. A 401(k) or pension generally needs a QDRO, as DivorceNumber notes. Rolling QDRO money into your own IRA gives up the early-withdrawal penalty exception, per Q3 Advisors. Pulling cash out for a down payment also removes it from the account the lender is counting.
Crypto, collectibles, business accounts beyond your ownership share and pledged or borrowed funds are not published as eligible on either path. The documented route is converting them to a seasoned cash balance in a regulated account, with the source reviewed by the lender.
Two Ways Assets Can Support a Loan
Across Lendmire’s wholesale network, asset-based mortgages run on two paths, and a borrower is qualified on one at a time. The asset-based mortgage program places both through select lenders, subject to underwriting.
| Factor | Asset qualifier | Asset depletion |
|---|---|---|
| How it works | Assets cover the entire loan | Assets become monthly income |
| Income documented | None | Derived from assets |
| Leverage | Up to 80% purchase, 75% refinance | Up to 80% purchase or rate-and-term on a primary or second home, 60% cash-out; investment property 65% and 60% |
| Loan amounts | Up to $4,000,000 | $125,000 to $3,500,000 |
| Credit | 600 minimum | The lender’s matrix |
Asset qualifier path. Brokerage, CDs, money market and savings count at 100%. Retirement accounts count at 90% under age 59½ and 100% after. Illustratively, an $800,000 loan with $330,000 in brokerage (100%), $300,000 in a 401(k) under 59½ (90%, or $270,000) and $200,000 in savings (100%) counts $800,000 of usable assets and is reviewed on assets alone. The lender’s own calculation governs.
Asset depletion path. Cash and CDs count at 100%, securities at 80%, private stock at 75%, retirement at 70% and real-estate equity at 60%. Illustratively, $1,500,000 in securities (80%, or $1,200,000) plus $300,000 in cash (100%) is $1,500,000 usable. Divided by 60 months, that is $25,000 of monthly qualifying income, which then carries the housing payment and other debts through the debt-to-income test. Minimum assets are typically the lesser of $1,000,000 or 1.25 times the loan, and never below $250,000 liquid when assets are the only income source.
Which path fits? If your settlement left you with balances larger than the loan, the qualifier path is cleaner. If you want to keep the assets working and have a thinner cushion, the depletion path trades leverage for flexibility.
Seasoning, Sourcing and Titling
Plan the paper trail before you apply. On the qualifier path, expect 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, statements must be at least 120 days old at application, plus a recent one within 45 days. Legal-settlement funds are excused from that seasoning on the depletion path.
Keep these on hand:
- The final decree or signed settlement agreement.
- Statements showing the transfer or wire from the ex-spouse.
- Retitling confirmation for any brokerage or retirement account.
- QDRO or transfer paperwork for retirement money.
The paper trail is how the lender confirms the money is yours and not borrowed.
Don’t Count the Same Dollars Twice
Money used for a buyout of the marital home or a down payment leaves the account. It cannot also count toward qualifying assets.
Say a borrower receives $600,000 in brokerage holdings and plans to buy out an ex-spouse’s share of a home. Once those funds go to the buyout, they no longer support the loan. Settlement terms and the new loan should be planned together, before the agreement is final. Test the numbers first. Then sign.
Support Income Is a Different Category
Alimony and child support are income, not assets. They follow different documentation rules and do not turn a settlement into a countable balance. Indiana’s maintenance is limited, so assets often matter more than support for qualifying purposes. An unsigned proposal or temporary order does not make funds countable either.
Buying, Refinancing and Rentals
A purchase with settlement cash is the simpler case. For an investment property, the depletion path is the only asset-based option, with 65% leverage on a purchase or rate-and-term refinance and 60% on a cash-out. Cash-out proceeds never count as qualifying assets. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Say a rental is awarded to you in the decree. It still carries the old loan, and removing the ex-spouse means refinancing. Investors who would rather qualify on the property’s rental income can look at a separate DSCR route, which tests the property rather than your assets. Both are placed through select lenders, subject to guidelines.
Property received in a divorce transfer generally carries no recognized gain or loss under IRS Publication 504. Tax treatment varies; consult a qualified professional.
Common Mistakes
- Treating the decree as the asset.
- Counting money already spent on the buyout.
- Assuming an unpaid note will count.
- Withdrawing retirement funds before checking how the lender counts them.
- Assuming the quitclaim removed the ex from the loan.
- Signing the settlement before testing qualification.
Key Terms Defined
QDRO: A court order that lets an employer retirement plan pay part of the balance to a former spouse.
Seasoning: The length of time funds have sat in an account before a lender counts them.
Asset depletion: A method that divides usable assets by 60 months to create qualifying income.
One-pot rule: Indiana’s rule that the court divides all property of both spouses.
Frequently Asked Questions
Does my decree count as proof of assets?
No. The decree shows where the money came from, but the lender counts statement balances. Once funds are paid, retitled and seasoned, the statements carry the weight.
Does a retirement account I receive count?
Yes, once it sits in your own name. On the qualifier path it counts at 90% under age 59½ and 100% after. On the depletion path it counts at 70% at any age.
Can unpaid settlement money count?
No. A deferred award or settlement note is a promise, not a seasoned asset. Wait until it is paid.
Does alimony count as an asset?
No. Support is income, a separate category, and it is not needed for asset-based qualification.
Do I have to refinance after the divorce?
Usually, if you keep a home and want your ex removed. The decree does not release anyone from the original note. A refinance, assumption or payoff does.
Next Steps
Finalize the transfers, season the funds, then apply. If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Program details are subject to underwriting and change. This is not a commitment to lend.
Lendmire’s asset-based mortgage in Indiana page presents the program for Indiana borrowers.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving self-employed and high-net-worth borrowers in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. 12 U.S.C. § 1701j-3, Cornell LII
2. Emerson Law, Indiana one-pot rule
3. McNeely Law, equal-division presumption
4. Emerson Law, marital property
6. DivorceNumber, dividing retirement accounts
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can a Tennessee Trust Beneficiary Qualify for a Mortgage on Trust Assets? · How Tennessee Tech Employees Paid in Stock Get a Mortgage on Assets · Can a California Widow Qualify for a Mortgage on Life Insurance and Retirement Assets?
Guides: Asset-Based Mortgage in Indiana
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.