house sale

[cookie747]

What is the name of your state (only U.S. law)? New York
Since I will need to find a home for my two children and myself I will need a bigger
percentage of the house sale. He has applied for bankruptcy and I want to make sure
this doesn't interfere with our verbal agreement regarding this. Also, should I get him to
sign a document witnessed by a notary stating that he agrees to give me 80% of the home,

Thank you

[nextwife]

Are you entitled to a greater share of the home equity (due to having brought a bigger downpayment than he or having brought the home to the marriage as a premarital asset?)?

Are these also his children?

Who is in the home? Is the occupant making certain the payments are being made?

Verbal agreements in Real Estate are not binding.

[mistoffolees]

Originally Posted by cookie747

What is the name of your state (only U.S. law)? New York
Since I will need to find a home for my two children and myself I will need a bigger
percentage of the house sale. He has applied for bankruptcy and I want to make sure
this doesn't interfere with our verbal agreement regarding this. Also, should I get him to
sign a document witnessed by a notary stating that he agrees to give me 80% of the home,

Thank you

You don't NEED a bigger share of the house sale. You are entitled to half of the marital equity. Your needs don't enter into it.

He can sign all the documents he wants, it won't have any bearing on anything. The creditors have a lien on the home, which effectively means that they're owed enough of the equity to pay the debt. He can't give away what is his.

The only option you have is a limited one and you need to consult with an attorney, including his bankruptcy attorney. If you negotiate a settlement where you get a larger portion of the house AND the court approves it, then you would get the negotiated portion of the equity.

HOWEVER, any liens on the house would remain in effect. In fact, it might make it worse - your personal residence has certain protections during bankruptcy. Since it will no longer be his personal residence, it may make matters worse. Furthermore, I suspect that the creditors could argue that the deal with you was fraudulent and interfere with your divorce settlement.

Frankly, your best bet is to sell the house. let it go for short sale, or whatever and go on with your life with whatever is left. Trying to take advantage of established creditors is likely to be more painful and expensive than just taking the share you're entitled to.

[MFinancier]

Originally Posted by cookie747

What is the name of your state (only U.S. law)? New York
Since I will need to find a home for my two children and myself I will need a bigger
percentage of the house sale. He has applied for bankruptcy and I want to make sure
this doesn't interfere with our verbal agreement regarding this. Also, should I get him to
sign a document witnessed by a notary stating that he agrees to give me 80% of the home,

Thank you

What kind of bankruptcy is your husband filing for, is your joint income below the means test for Chapter 7, are these debts marital in nature and have you co signed for them, do you have more than the home equity amount exempt under Chapter 7? Have you considered some of the advantages of jointly filing for bankruptcy...like doubling your exemptions? There are lots of factors that you need to consider, and I recommend you talk to a bankruptcy attorney. Bankruptcy WILL impact your divorce settlement one way or another, and verbal agrements won't help you, even if no bankruptcy was involved. When one or both spouses file for bankruptcy before you get divorced, all marital property generally becomes part of the bankruptcy estate. The divorce court has to wait on the bankruptcy court and then whatever property is deemed exempt is split equitably for your divorce settlement...and if you think you are going to have your STBX promise to pay you 80% of the home equity just because you "need" it...even if it's all exempt...GOOD LUCK!