Question about a homeowner's insurance payment

[hambirg]

What is the name of your state (only U.S. law)? Washington

Here's the situation. . .I have been seperated for over a year. I live in the house with our 3 kids. We had a sewer back-up in the basement and there was damages(mostly to stuff. . .not structural). I received a check from our homeowner's insurance for that. There are things that have to be replaced. . .freezer. . .workbench. . .etc. My husband (soon to be ex) seems to think that he is entitled to half of the money from the check. He's unemployed and needs the money. . .I understand that. However for the first 4 mos of our seperation he lived in the house and never paid the mortgage. . .utilities, etc. When I moved back into the house I had to pay all that. . .and reconnect things like the phone and the electric when they turned it off (didn't know they weren't paid until they disconnected). Is he really entitled to any of it? I told him he would get whatever part of the household in the divorce, so giving him that money now was like paying him twice. . .thoughts?

 

[mistoffolees]

What is the name of your state (only U.S. law)? Washington

Here's the situation. . .I have been seperated for over a year. I live in the house with our 3 kids. We had a sewer back-up in the basement and there was damages(mostly to stuff. . .not structural). I received a check from our homeowner's insurance for that. There are things that have to be replaced. . .freezer. . .workbench. . .etc. My husband (soon to be ex) seems to think that he is entitled to half of the money from the check. He's unemployed and needs the money. . .I understand that. However for the first 4 mos of our seperation he lived in the house and never paid the mortgage. . .utilities, etc. When I moved back into the house I had to pay all that. . .and reconnect things like the phone and the electric when they turned it off (didn't know they weren't paid until they disconnected). Is he really entitled to any of it? I told him he would get whatever part of the household in the divorce, so giving him that money now was like paying him twice. . .thoughts?

As long as your claim was legitimate, the money was given to you to reimburse you for damage and allow you to replace damaged items. You are not obligated to do so.

Your husband will eventually be entitled to 1/2 of your marital assets. In principle, it doesn't matter if you put that money into a savings account or use it to buy a replacement freezer, workbench, etc - he gets half.

HOWEVER, the money is worth far more as cash. Let's say you got $1,000 and use the money to buy a $1,000 appliance. At the time of the divorce, the appliance will be valued at fair market value - which is much less than its purchase price. If you keep the appliance, you pay him half of the value at the time of the divorce (or vice versa). He could make the claim that you cheated him by replacing ruined 'stuff', but it's not likely to go anywhere (at least as far as buying items that you NEED - such as a refrigerator). But, it's not particularly fair to him, either.

I would recommend that you buy only what you absolutely HAVE to have to live and put the rest of the money in the bank. He will be entitled to half of the value of what you buy plus half of the cash.

 

[nextwife]

Doesn't your mortgage language require that this repair be done to the property? You are required to maintain the home in the condition in which the loan was issued, or better.

 

[hambirg]

Doesn't your mortgage language require that this repair be done to the property? You are required to maintain the home in the condition in which the loan was issued, or better.

There really was no damage to the property other than what the mitigation company was paid to clean up. The adjuster told me I was not obligated to replace anything. . .of course some things I want to. I was given the adjusted value of the items that were damaged by the sewage, but I have replacement cost coverage. . .meaning the items that I replace I will be reimbursed the difference by the insurance company when I send them the receipt for the new item.

I just feel like he's not really entitled to half the check in cash right now. . .that money is intended to replace those things, and that's what I'd like to do with it. He can hash out what he's entitled to during the actual divorce.