Property Division

[Melinda Davies]

What is the name of your state? Georgia

Short details, 5 year marriage, wife owned home with a large amount of equity titled in her name, husband talks wife into buying another home, wife puts all of her equity in new home titled in her name only. All money was kept seperate during marriage, husband and wife each earn about 45,000. Husband never invested money in the home, only minor repairs and maintenance. First home had a gain of about 33,000. Second home doesn't have a gain at this time, but is worth a lot more than owed due to the cash down payment I made. (Housing market really bad in Georgia). Wife agreed to paying all marital debit (5,000), and giving up any right she may have to his retirement and a home he shares with his mother in another state. Mediation didn't go well and husband has requested a jury trial. Now for my questions, what are my chances with a jury? Isn't this risky for us both? Would I be better off going before a judge who understands how complex the division of property is? (If I delay the trial I may can get him to agree to this) I really don't have a choice but to fight it, he wants $27,500 to settle out of court and I don't have it.

 

[LdiJ]

What is the name of your state? Georgia

Short details, 5 year marriage, wife owned home with a large amount of equity titled in her name, husband talks wife into buying another home, wife puts all of her equity in new home titled in her name only. All money was kept seperate during marriage, husband and wife each earn about 45,000. Husband never invested money in the home, only minor repairs and maintenance. First home had a gain of about 33,000. Second home doesn't have a gain at this time, but is worth a lot more than owed due to the cash down payment I made. (Housing market really bad in Georgia). Wife agreed to paying all marital debit (5,000), and giving up any right she may have to his retirement and a home he shares with his mother in another state. Mediation didn't go well and husband has requested a jury trial. Now for my questions, what are my chances with a jury? Isn't this risky for us both? Would I be better off going before a judge who understands how complex the division of property is? (If I delay the trial I may can get him to agree to this) I really don't have a choice but to fight it, he wants $27,500 to settle out of court and I don't have it.

Ok...the house is yours, and the downpayment is yours, but he might be entitled to 50% of any equity that accrued during the marriage.

You would be entitled to 1/2 of the amount in his retirement account that accrued during the marriage. You would likely not be entitled to any portion of the home that he owns with his mother. He would be responsible for 1/2 of the marital debt.

How is he coming up with the 27,000 figure? Is that 1/2 of the equity in the home?

 

[MFinancier]

What is the name of your state? Georgia

Short details, 5 year marriage, wife owned home with a large amount of equity titled in her name, husband talks wife into buying another home, wife puts all of her equity in new home titled in her name only. All money was kept seperate during marriage, husband and wife each earn about 45,000. Husband never invested money in the home, only minor repairs and maintenance. First home had a gain of about 33,000. Second home doesn't have a gain at this time, but is worth a lot more than owed due to the cash down payment I made. (Housing market really bad in Georgia). Wife agreed to paying all marital debit (5,000), and giving up any right she may have to his retirement and a home he shares with his mother in another state. Mediation didn't go well and husband has requested a jury trial. Now for my questions, what are my chances with a jury? Isn't this risky for us both? Would I be better off going before a judge who understands how complex the division of property is? (If I delay the trial I may can get him to agree to this) I really don't have a choice but to fight it, he wants $27,500 to settle out of court and I don't have it.

Was the mortgage on your house paid with marital income? How were the taxes paid? Were the "minor" repairs and maintenance documented? Did you have his retirement benefits valued? What about his joint interests in his mother's home...did any marital interests go into this. Have you had your finances thoroughly analyzed? Don't rush things...there are lots of questions here that need to be anwsered before you should be making ANY agreements. The sooner you get all your finances sorted out...the easy it will be to make any meaningful decisions.

 

[Melinda Davies]

I have both of our checkbooks on my computer. So I have all of the records. He is coming up with the 27,000 from an appraisal done last year. The appraser took closing cost from the appraised value to show how much would value is in the house after a sale. He doesn't believe the closing cost should come out, so he added it back. I contacted my realitor and she wants to list the house for 25,000 less than the appraised value. (Change in housing market in just one year.) I don't want to sale the house in this market, but will be forced to if he is awarded this amount of money. I am in the middle of remodeling this house and alot of work would have to be done in order to sale it. (Can't get a morgage like it is) I agree he is entitled to 1/2 of the increase in value of the second house. But I think I should get credit for the personal money I put in the house. (37,000) He doesn't. He really believes the money from the first house should be split 50/50 even though I put a large downpayment in the house and owned it two years before we were married. I don't believe he is entiled to any of the first house. (Not marital property, no marital funds put in it.) But, my big question is, what are my chances explaining this to a jury? Would I be better off with a judge?

 

[Ohiogal]

I have both of our checkbooks on my computer. So I have all of the records. He is coming up with the 27,000 from an appraisal done last year. The appraser took closing cost from the appraised value to show how much would value is in the house after a sale. He doesn't believe the closing cost should come out, so he added it back. I contacted my realitor and she wants to list the house for 25,000 less than the appraised value. (Change in housing market in just one year.) I don't want to sale the house in this market, but will be forced to if he is awarded this amount of money. I am in the middle of remodeling this house and alot of work would have to be done in order to sale it. (Can't get a morgage like it is) I agree he is entitled to 1/2 of the increase in value of the second house. But I think I should get credit for the personal money I put in the house. (37,000) He doesn't. He really believes the money from the first house should be split 50/50 even though I put a large downpayment in the house and owned it two years before we were married. I don't believe he is entiled to any of the first house. (Not marital property, no marital funds put in it.) But, my big question is, what are my chances explaining this to a jury? Would I be better off with a judge?

What you think doesn't matter. No marital funds were put into it? Meaning the mortgage was not paid with income EARNED during the marriage?

 

[LdiJ]

What you think doesn't matter. No marital funds were put into it? Meaning the mortgage was not paid with income EARNED during the marriage?

I think that she is saying that the first house (the one she owned prior to this one) was sold when they got married, so that the equity was all premarital. She wants to give him only 1/2 of the equity of the second house that accrued since it was purchased, minus the down payment of premarital funds that she put into the home. Since this home is also in her name only, and Georgia is not a community property state, I think that she can make a good argument for that.

I will add that I think that she needs a knew appraisal, based on today's reality, not the reality of 1 year ago. The market has had massive changes since then.

Does anybody know whether or not jury trials are actually possible?

Had another thought...she needs to take her agreement to leave his retirement fund alone, and to pay all of the marital debt, off the table at this point.

 

[MFinancier]

I have both of our checkbooks on my computer. So I have all of the records. He is coming up with the 27,000 from an appraisal done last year. The appraser took closing cost from the appraised value to show how much would value is in the house after a sale. He doesn't believe the closing cost should come out, so he added it back. I contacted my realitor and she wants to list the house for 25,000 less than the appraised value. (Change in housing market in just one year.) I don't want to sale the house in this market, but will be forced to if he is awarded this amount of money. I am in the middle of remodeling this house and alot of work would have to be done in order to sale it. (Can't get a morgage like it is) I agree he is entitled to 1/2 of the increase in value of the second house. But I think I should get credit for the personal money I put in the house. (37,000) He doesn't. He really believes the money from the first house should be split 50/50 even though I put a large downpayment in the house and owned it two years before we were married. I don't believe he is entiled to any of the first house. (Not marital property, no marital funds put in it.) But, my big question is, what are my chances explaining this to a jury? Would I be better off with a judge?

Your getting ahead of yourself on any "awards" here. You need to have all the other assets or debt added up as well. That includes his retirement accounts and the marital debt you have mentioned. I also think you need to get another appraisal on your house...considering present market conditions. Maybe two!

 

[MFinancier]

GEORGIA: Horsley v. Horsley, ___ Ga. ___, 490 S.E.2d 392 (1997).
Under the "source of funds" rule, the spouse contributing nonmarital property is entitled to an interest in the property in the ratio of the nonmarital investment to the total nonmarital and marital investment, with the remaining property to be characterized as marital.

That's why I was interested in how much marital money for mortgage payments, taxes, maintenance etc. was put into either home and if you could document it...particularly if the first home was sold after they got married. Georgia is also an equitable distribution State so there is some play here. She could end up with more than half the equity, and hopefully nothing she has promised so far in mediation will be binding.

 

[Melinda Davies]

I did own the first house pior to marriage (2 years) but I owned it four years we were married for a total of 6 years. But we kept all of our money separate and I paid 80% of all household expenses including morg. , taxes and insurance. (He made more money most of the time but thought I should pay more because I have kids.) Bottom Line, he didn't pay 1/2 of the morg. at any time. All repairs and expenses for the house came out of my personal savings. As for the jury trail, they have already requested it. My Lawyer has been doing divorces in this county for 20 years and this will be only his 2nd divorce trial in front of a jury. Thanks for all of your help!

 

[Melinda Davies]

No, I haven't promised anything at this point. Offer was make if aggreement could be reached without going to mediation. No agreement was reached. I really think I have a good case for little or no equity from my house. What I am concerned with is the jury. A judge would look at the law, a jury my follow their heart. That could help or hurt me. If anyone has any insite for divorce cases in front of juries, please let me know. (Maybe a web site that has past cases and awards.) Thanks again!