Immigation, divorce and property

[netcoach]

What is the name of your state? LA

My wife is Canadian. We filed a petition for citizenship\Permanent residence before Katrina. Because of the confusion of addresses since Katrina we ended up missing an interview and had our petition denied. So now I guess she is illegally here (is that true?). We recently separated over family issues between us. She is being very vindictive and is threatening things like I will have to support her, that she can force me to sell our two houses, etc. My question is:

What are her rights as to our two houses? She is on the title, but I am the only one on the loans. Wouldn't the court just give each of us one house rather than forcing us to sell both? They are worth roughly the same. Does her status here as a denied permanent residence affect any of this? We have no other real assets but these homes. The loans are about 50% of their value. Thanks for any help

 

[LdiJ]

What is the name of your state? LA

My wife is Canadian. We filed a petition for citizenship\Permanent residence before Katrina. Because of the confusion of addresses since Katrina we ended up missing an interview and had our petition denied. So now I guess she is illegally here (is that true?). We recently separated over family issues between us. She is being very vindictive and is threatening things like I will have to support her, that she can force me to sell our two houses, etc. My question is:

What are her rights as to our two houses? She is on the title, but I am the only one on the loans. Wouldn't the court just give each of us one house rather than forcing us to sell both? They are worth roughly the same. Does her status here as a denied permanent residence affect any of this? We have no other real assets but these homes. The loans are about 50% of their value. Thanks for any help

If she isn't going to be able to remain in the US, because of the botched residency process, then I am quite sure that she is going to want her equity....rather than holding on to a property and a mortgage. She is entitled to 50% of the total equity in both homes.

You can certainly keep one of the homes as long as you make sure that the amount of cash that she receives is equal to 50% of the combined equity in both homes.

 

[netcoach]

Does that mean then that she can force liquidation of both houses? It would seem to me that it would be fair to give her one house and then she could arrange to sell that if she wants. But she has said she wants to just firesale both houses (she is getting a large inheritance from her family in Canada and won't need this money). This is my life savings that she just wants to eliminate. To her she doesn't want me to get either house.

 

[LdiJ]

Does that mean then that she can force liquidation of both houses? It would seem to me that it would be fair to give her one house and then she could arrange to sell that if she wants. But she has said she wants to just firesale both houses (she is getting a large inheritance from her family in Canada and won't need this money). This is my life savings that she just wants to eliminate. To her she doesn't want me to get either house.

I don't think that you understood what I said before. She isn't on the mortgages therefore she doesn't have to be removed from the mortgages. Therefore, there is actually no need to sell either house....although it would probably be more practical to at least sell one of them.

Example:

If house one has 50k in equity, and house two has 60k in equity, that is total equity of 110k
She is entitled to 55K of that. As long as you make sure she gets 55k...either from the proceeds of one house, or from you taking out out an additional loan of some kind, she will receive what she is supposed to receive.

However, if you are going to go that route, please make sure that you get both houses appraised before you determine total equity.

She obviously wants fast money if she is saying that you should "fire-sell" them. So get her the money fast by determining their true appraised value and then take out an equity loan or loans to get her paid off....and then decide whether or not you want to sell one or both of the homes. Of course, make sure that she signs quit claim deeds on both properties when you give her the money.