Every case is different when it comes to the sale of any marital property. If one of the parties cannot finance the others, and pay off their equity, or if there is very little equity in the home, then the house most likely will be put on the market for sale.
How Do I Separate Myself From A Property If It Has Been Allocated To My Spouse In A Divorce?
It is difficult to separate oneself from property if it is allocated to the other spouse. Once you have signed on a mortgage, the bank is not going to let it go. What typically happens is that a time is given to whoever is going to retain, and maintain the property. They have to refinance that property into their name alone, and then pay out the equity of that house to the other spouse. This is typically what happens. I have seen as little as ninety days to get this accomplished. It can take as long as eight years in some cases, it just depends on the specific circumstances.
If this goes before a judge, the judge will usually push to refinance. If they cannot refinance, then the judge will order the property to be put on the market. They can separate themselves unless they agree to mediation, or unless they stipulate to it. The judge is not going to keep you on that mortgage forever if you are not living there.
Are There Any Assets That Would Not Be Subject To A Split?
Yes, we have spoken about personal injury settlements, and we have discussed inheritances. There are some unique exceptions to the fifty-fifty split, and that would be anything that you both agreed upon during the marriage. In our day and age, we see many ante-nuptial agreements. They are also called prenups, or pre-nuptial agreements. Sometimes people have preserved their assets beforehand, saying I own this business, or I own this property. They would outline their assets and liabilities beforehand. Those things would stay in their name if they have already delineated these issues.
During the course of your marriage, you can have a post-nuptial agreement. This stipulates where you say that we have this business together, but I want this $100,000, or this piece of land, or this piece of property. Whatever it is, it is going to be in my name alone. This is titled in my name, and there is an agreement from both parties, who have signed this agreement with their attorneys present. It will be notarized, as long as it meets those requirements. Those are pretty much the only exceptions, there might be a few more out there, but those are pretty much it.
What Debts Will I Be Liable For When It Comes To My Ex-Spouse?
Debts operate a little bit differently than assets do. Even though debts are typically split fifty-fifty, it is unique to see who actually signed on a debt, because a court assigns a debt to someone. This says you have to pay this debt. For example, your spouse is the one who incurred all of this debt, but it was for the marital estate, and both parties benefitted from that debt. Let us say it is a $10,000 credit card debt for argument’s sake, and that $10,000 was in your spouse’s name. Now through this divorce, you are required to pay half of that. Your name is not on it, yet you are required by a court order to do it. It works both ways.
What happens is the court divides the debt, rather than split it. They will suggest each spouse pay a credit card off. That way, it is definitive. The court can encourage both parties to consolidate their debt. I have seen parties file for bankruptcy while they are in a divorce settlement in order to get rid of some debt. That does not change the court order, and it does not change who signed the debt. Those are things to keep in mind, but usually if the debt is used for marital purposes, meaning maintenance of the house, paying for food, clothing, and both parties benefitted then it will be split fifty-fifty. If it is incurred after the date of separation, then it will be specific in nature. Therefore, those are some things to look out for when it comes to debt.
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