Kelly Credits

[tuffut]

What is the name of your state (only U.S. law)? Florida

Here in FL often in a divorce case where the husband works but the wife does not, the wife will end up getting the option to keep the marital home until she marries or the children reach majority age. On top of that, in some cases the wife will get 1/2 of mortgage payments she makes during her exclusive use of the property. This is known as the Kelly Credit. Whereas the equity is split 50/50, a Kelly Credit would then take one-half of all mortgage payments made from the ex-husband and award that to the ex-wife upon sale.

So here is the question. If the ex-wife reaches either of these conditions that cause her to put the property up for sale, is she awarded the kelly Credit during the time it takes to sell the property?

In my case, she hasn't taken very good care of the property, doesn't want to sell, and with the market the way it is I somewhat expect it to take upwards of a year to sell. It seems unfair to whittle away at my equity when she did get married and didn't keep the house in an attractive state.

As a side question, nowhere on the decree does it say anything other than SALE. Does she have a right to refi if she wants to? Or would wanting to do so require a change to the Final Judgment?

Thanks for any insight.

 

[Tayla]

There was a case brought before the Florida court Mary Jo kelly v William Kelly. (1991)
Some arguements were based on
Barrow v. Barrow, 527 So.2d 1373 (Fla. 1988)
Rutkin v. Rutkin, 345 So.2d 400 (Fla. 3d DCA, 1977)
Canakaris v. Canakaris, 382 So.2d 1197 (Fla. 1980)

Is this the matter in which you are referring the "Kelly credit "on?
Are you both still on title and mortgage?

 

[tuffut]

Yes, that the basis of the credit she was granted in the final judgment.

Yes, I am on the title along with her but only my name is on the mortgage.

 

[LdiJ]

What is the name of your state (only U.S. law)? Florida

Here in FL often in a divorce case where the husband works but the wife does not, the wife will end up getting the option to keep the marital home until she marries or the children reach majority age. On top of that, in some cases the wife will get 1/2 of mortgage payments she makes during her exclusive use of the property. This is known as the Kelly Credit. Whereas the equity is split 50/50, a Kelly Credit would then take one-half of all mortgage payments made from the ex-husband and award that to the ex-wife upon sale.

So here is the question. If the ex-wife reaches either of these conditions that cause her to put the property up for sale, is she awarded the kelly Credit during the time it takes to sell the property?

In my case, she hasn't taken very good care of the property, doesn't want to sell, and with the market the way it is I somewhat expect it to take upwards of a year to sell. It seems unfair to whittle away at my equity when she did get married and didn't keep the house in an attractive state.

As a side question, nowhere on the decree does it say anything other than SALE. Does she have a right to refi if she wants to? Or would wanting to do so require a change to the Final Judgment?

Thanks for any insight.

In this instance, a refi would be virtually the same as a sale. However, you would be selling her your interest in the home, for your share of the equity. Therefore she would have to get a mortgage for enough to both pay off the existing mortgage, AND to pay out your share of the equity to you.

There is no reason for you to quibble about her refinancing, as long as the mortgage gets out of your name, and you get your fair share of the equity, based on fair market value.

 

[tuffut]

Thanks for the reply.

Do you have an opinion on the question of the Kelly Credit AFTER the date in which the home is put up for sale? I don't see why she is entitled to it after she no longer is entitled to the home.