This scenario sure brings back memories of when I practiced family law. I know from experience that you can't judge without knowing all the facts. Trulia is most certainly not the place to get answers to these kinds of questions that involve legal advice and require knowledge of details. Hopefully, Down in Rocklin will go and seek the advice of an attorney before signing anything. At first glance, her story sounds inequitable (husband gets a chance at buying a new house that is not under water) while wife gets to refinance a house that will still be under water after the refinance and is supposed to compensate him for upgrades that unfortunately now have no value while her contribution at purchase is swept under the rug. They are not yet divorced and my guess is the property division is not yet final (just a hunch). Husband makes good money, wife is on disability. Sounds like maybe husband should be required to pay for wife's attorney fees. All the rights in the world are useless unless they are asserted in a timely fashion.