I have a loan for Business A.

It is partially paying of a loan for Business A.

Business B is paying off the balance of the loan.

Business A was orginally owned by Husband and Wife.

When the new loan closed, Business A is now owned by ExWife

When the new loan closed, Busines B is a new enitity owned by ExHusband.

On the surface, it looks like it is not a refianace as the new loan to Business A didn't payoff the old loan in full.

Where we are getting stuck is the Business B portion of the payoff becuase the ExHusband is buesiness B and WAS part of Buiness A for the debt being pd off.

Thoughts?

My personal thoughts are that the loan to Business A is not a refi. That loan is not paying off and replacing another loan. It is only paying down the loan; a balance remains after the proceeds from your loan to A are applied.

It does not appear that you are financing a loan to Business B. If you were and it's actually Business B that is fully paying off the loan, funds to B would be reportable.

Are you likely to have a timing issue of Business B putting in their funds first, so that A's loan ends up fully paying off the original debt? If not, I stand by the loan to A not being reportable.

They closed same day and the title company delivered back to us the funds all at once to get clear title to the properties for the divoce settlement. Thanks for chiming in.

I would look at this as a refinance then (assuming that the old and new loan are dwelling-secured). Your loan (along with gift funds from Business B) is satisfying and replacing the original loan. I wouldn't look at this any differently than a simultaneous 1st and 2nd lien loan that satisifed and replaced a dwelling-secured loan.