contested divorce

[marlainorg]

What is the name of your state (only U.S. law)? Oregon.My daughter is filing for a divorce. Her husband is contesting. The issue is the home that they purchased. How can my daughter get out of the home loan if the husband contest the divorce. She is willing to pay half the mortgage even tho' she is no longer living in the house to save her good credit..She want's to put the house up for sale because he is not open to removing her name from the loan or refinancing in his name. He does not want to put the house up for sale because of the market. They like many others will never get out of it what the loan balance is. He wants to lease or rent the home and my daughter just wants out...She is not asking for any spousal support as for the personal property dishes, furniture, etc. she doesn't want any of it..Since he is contesting does she have to get an attorney and is there any advice you can give regarding the home loan? Thank You for your help...I did forget to mention that there are no children.

 

[mistoffolees]

She can't just walk away from the home loan. Even if the divorce judge orders her husband to take it over, her name is still on it. Even if she pays 1/2, she's still on the hook for the rest if her husband won't pay.

There are only 2 likely ways for her to get out of it:
1. Husband refinances in his own name (which won't be possible unless there's enough equity and/or he brings more money to the table)
2. House is sold for enough to pay off the mortgage.

Her actions would be:
1. File for divorce.
2. Ask the court for sole possession of the house OR an order for her husband to pay the mortgage since she's not there (but watch the mortgage statements because if he doesn't pay, she'll have to file for contempt). (There's a lot more information about that on this board - search for similar examples).
3. Ask the court to make a permanent order that he refinance the home in his name within 60 days or sell the house. I would suggest that this order be as specific as possible. For example, set some rules on the sale of the house (such as, house will be listed at the lowest (or average) price of 3 separate realtor recommendations. If an offer greater than or equal to 90% of the listing price is received, it must be accepted. Husband must keep the home and yard in good repair and not interfere with any showings. Etc).

Since it's going to be contested, I would recommend hiring an attorney. There are not that many cases where a layman can handle a contested divorce.

 

[marlainorg]

Just wanted to say Thank You for your advice...I really do appreciate your help.

 

[LdiJ]

Just wanted to say Thank You for your advice...I really do appreciate your help.

I will also add, that if the home is sold for less than the loan balance, your daughter's credit is still going to be significantly damaged unless they have money to bring to the closing table to pay up the difference between the loan and the sales proceeds.