Can I Keep The House?

[Mangostene]

I'm in California, I'm headed for a divorce. Both the wife and I are pretty civil, adults, and amicable about the separation.

I bought the house brand new back in 2001, I was the sole title holder to the house. When I refinanced it in 2003, I added my wife's name to the title.

We are both after an uncontested divorce, split everything down the middle. I have been the sole bread winner since 2003 when my first daughter was born. We have two kids. So whatever assets that will be divided is basically everything that I earned on my own. We already both agreed that she will get major custody of the kids and I get to visit or get to stay with me on certain occasions.

I don't have a problem splitting what little assets we have. The really big sticking point is the house.

I bought the house for $282,000.00. It is now worth $750,000.00.
I want one of us to keep the house. Reason: I want the kids to grow up in the house because it is the place they've come to know and recognize.

I would like for her to stay in and keep the house and have her buy my rights to it but I don't think she'll be able to make the payments on it on her own.

I was initially going to give up my rights to it out of the kindness of my heart and have her keep it and also told her if that happens, she needs to pay the monthly for it.

My folks warned me not to be so kind and hasty as she could easily say yes to that arrangement and her not being able to meet the payments therefore she'll turn around and sell the house and keep every single red cent of the sale and I won't have a say in the matter since I would have already surrendered my rights to the house.

So here's what I'm thinking. Is there any way I can reclaim full rights of the house back to me or is she pretty much half owner of the house since after that time I added her on there when I refinanced?

Can I buy her out of her rights to the house? If I can, how does that go or how does that work?

I want to keep the house and have 100% rights to it once again but if I can't do that, I'm going to be forced to sell it. I don't mind starting over in getting a new home.

Also, are there any lawyers forums that you guys know of that provide pro bono legal advice?

Aside from the house, our divorce is pretty much uncontested by both parties where we don't need a lawyer, therefore not have to pay and we can just split the assets and keep them for ourselves rather than hand it over to a lawyer.

She's not against the idea of having one of us keep the house or selling it either. We both agreed that the kids are the priority and everything else can be ironed out without butting heads.

What should I do?

 

[Zephyr]

you can put in the agreement that she can live there with the children, making whatever payments you guys arrange and that upon sale of the house you equally split the proceeds

 

[moburkes]

But, since your name is on the mortgage, your credit will be hit when she can't afford the payments. So, if you are sure that she cannot afford them, there is no reason for her to stay in the house, unless you plan on making 2 house payments.

Also, the equity that has accrued since marriage belongs to both of you. You didn't explain if you got married before or after you bought the house.

 

[LdiJ]

But, since your name is on the mortgage, your credit will be hit when she can't afford the payments. So, if you are sure that she cannot afford them, there is no reason for her to stay in the house, unless you plan on making 2 house payments.

Also, the equity that has accrued since marriage belongs to both of you. You didn't explain if you got married before or after you bought the house.

Its not just the equity that accrued during the marriage. He added her to the deed which makes her an equal owner of the property and equally entitled to the equity.

My personal opinion is that it would be wiser to sell the house and split the proceeds.

 

[moburkes]

I agree. I don't know why people attribute so much to a particular house. When the kids see dad, they won't be in a familiar house. Some families move multiple times before the kids graduate. Mom can attempt to buy a house in the same neighborhood, if she can afford it. Or, dad can keep the kids and buy a nearby house. Let them help decorate their new rooms. They'll have fun.