Divorce and retaining home jointly

[cmgschultz]

What is the name of your state Minnesota
My husband and I are divorcing. Our home has not sold, we are temporarily taking it off the market so that we can proceed with the divorce. Since it is an amicable divorce, we are going to reside in the home until it is sold and when it is sold all equity will be split 50/50. How do we clearly state this in the divorce documents?What is the name of your state (only U.S. law)?

 

[LdiJ]

What is the name of your state Minnesota
My husband and I are divorcing. Our home has not sold, we are temporarily taking it off the market so that we can proceed with the divorce. Since it is an amicable divorce, we are going to reside in the home until it is sold and when it is sold all equity will be split 50/50. How do we clearly state this in the divorce documents?What is the name of your state (only U.S. law)?

So you plan to share the home, even after the divorce is final?..until it sells? There was no need to take it off the market in that case. You just needed to draw up an agreement to that effect.

Its kind of a wierd thing to do, and could make life very uncomfortable for either one or both of you, but its not entirely unheard of. Make sure that you have very clear and enforceable agreements regarding household expenses.

Again, however, there honestly was no need to take it off the market.

 

[mistoffolees]

What is the name of your state Minnesota
My husband and I are divorcing. Our home has not sold, we are temporarily taking it off the market so that we can proceed with the divorce. Since it is an amicable divorce, we are going to reside in the home until it is sold and when it is sold all equity will be split 50/50. How do we clearly state this in the divorce documents?What is the name of your state (only U.S. law)?

You're walking on dangerous ground. Amicable divorces have a way of turning nasty before all the dust settles.

If you are convinced you want to do it, make sure that the divorce decree addresses:

1. How the expenses are split while you're living in the house.
2. How the equity will be determined and divided when you finally sell it.
3. How long you can keep up the current situation (you can make it indefinite if you wish, but beware).
4. What happens if one party decides that they no longer like this situation and decides to move out (such as if they find a new bf/gf, for example)? This is a major issue. Can either party force the sale of the house? Can either party force the other party to buy them out at some date in the future to avoid selling the house? If so, how is the equity determined? Are you going to force the party keeping the house to refinance (strongly recommended) or sell if they can't refinance?
5. What happens if one party gets a new bf/gf and wants them to spend the night?

I can see about a million things that could go wrong. Sure, you might avoid selling the house in a downturn, but the cost may very well not be worth what you gain.

Personally, I would never recommend it to anyone that I know. If you must proceed, I would spend a great deal of time considering all the possible problems and how you would resolve them. Anything that's left open is likely to create a problem some day.

 

[cmgschultz]

Retaining home - Follow Up

I have been told that if the house sells while the divorce is in process it can hinder the closing of the home. True or Un-true?

 

[nextwife]

I have been told that if the house sells while the divorce is in process it can hinder the closing of the home. True or Un-true?

Not if you are BOTH in agreement about the sale. Don't miss out on a buyer if you get one, not in this market. It MAY be wise, however, to have the proceeds, or a large percentage of them, held in escrow until all the debts and responsibilities for them are sorted out.

 

[dantavious]

I am going through a similar situation. My ex-wife and I had to stay in the same house after the divorce because we could not get the home sold. 2 months later, she decides that she cant stay in the house and she decided to move out. Initially, there was no way I could pay for the mortgage by myself. So my question is, besides refinancing, how can I get her name off the loan and deed. She says that she will assist me in any way to make the house mine only.

 

[mistoffolees]

I am going through a similar situation. My ex-wife and I had to stay in the same house after the divorce because we could not get the home sold. 2 months later, she decides that she cant stay in the house and she decided to move out. Initially, there was no way I could pay for the mortgage by myself. So my question is, besides refinancing, how can I get her name off the loan and deed. She says that she will assist me in any way to make the house mine only.

Talk to the bank. Depending on circumstances, they may be willing to do it, but you're still going to need to be able to demonstrate your ability to pay. You can not, however, force them to take her name off.

If you can't pay the cost of keeping the home, just sell it and get it over with.

 

[cmgschultz]

Retaining home - Follow Up

Once the divorce is final, and we are still retaining the home until it sells, do we need to change the ownership on the house title?

 

[LdiJ]

Once the divorce is final, and we are still retaining the home until it sells, do we need to change the ownership on the house title?

No, there is no reason to do that, and every reason not to do that. It both protects both of you, and keeps you both responsible for the house until it sells.

 

[creative]

I've already gotten a divorce; however my x is keeping a house, which he has not made mortgage payments on despite his receiving rent for it (it's fully rented). Both our names are on the mortgage. As per our divorce agreement, he had 3 months to refinance the house and has not done so. My credit is shot. He hasn't made payments in 6 months so the bank ordered a foreclosure. My employment is at risk because I cannot have any foreclosures on my credit in order to do what I do. I didn't know what else to do, except take him to court. Our court date is set for Oct. 10.

I, on the other hand, kept a house. I took his name off the mortgage and deed pending execution; however he will not sign. I'll find out more then....

 

[mistoffolees]

I've already gotten a divorce; however my x is keeping a house, which he has not made mortgage payments on despite his receiving rent for it (it's fully rented). Both our names are on the mortgage. As per our divorce agreement, he had 3 months to refinance the house and has not done so. My credit is shot. He hasn't made payments in 6 months so the bank ordered a foreclosure. My employment is at risk because I cannot have any foreclosures on my credit in order to do what I do. I didn't know what else to do, except take him to court. Our court date is set for Oct. 10.

I, on the other hand, kept a house. I took his name off the mortgage and deed pending execution; however he will not sign. I'll find out more then....

You have one more option that you need to consider since your job is at stake. You can pay the bank enough to keep the home out of foreclosure and then ask the court to have your ex reimburse you as well as ordering the house sold.