Divorce settlements are not considered income and as such are not reported on an income tax return.
While the above statement is absolutely true, I see nothing in the post to indicate the $35,000 was a part of any settlement. I only point this out because the statement is "my ex-husband" as opposed to "my soon-to-be- ex husband" or something of that nature. For all I know, he's been your ex for a number of years and is just now getting around to refinancing. So while the statement is true, it's perfectly possible it does not apply to you. Just be aware.
