House buy out

[brooklyn2]

Pennsylvania

Married for seven years and both a house before we got married everything is in my name. She wants to leave the marriage so in regard to the house do I have to buy her out or give her anything when I do sell the house.

[Ohiogal]

Originally Posted by brooklyn2

Pennsylvania

Married for seven years and both a house before we got married everything is in my name. She wants to leave the marriage so in regard to the house do I have to buy her out or give her anything when I do sell the house.

You have to give her half the marital equity.

[nextwife]

Originally Posted by Ohiogal

You have to give her half the marital equity.

Does she get half of any marital shortfall, if upside down, as well?

No, seriously, I've not seen any case law on how any serious negative equity accrued during the marriage is handled.

[LdiJ]

Originally Posted by nextwife

Does she get half of any marital shortfall, if upside down, as well?

No, seriously, I've not seen any case law on how any serious negative equity accrued during the marriage is handled.

Unless they did refinancing during the marriage and took out equity, its unlikely that a house bought more than 7 years ago would be in a negative equity position now.

Yes, the market has tanked, but they bought it long enough ago that there shouldn't be any serious negative equity...however there might not be any significant equity either...they might be somewhat near "break even".

[nextwife]

Originally Posted by LdiJ

Unless they did refinancing during the marriage and took out equity, its unlikely that a house bought more than 7 years ago would be in a negative equity position now.

Yes, the market has tanked, but they bought it long enough ago that there shouldn't be any serious negative equity...however there might not be any significant equity either...they might be somewhat near "break even".

Excuse me? I handle default real estate, and know exactly what year some of the loans were done.

Deferred maintenance, neighborhood decline, flooding, mold, home in small town with no work available: all these are scenarios in which I've seen homes seriously negative. Oh yeah, there was that house in which the owners did all their own internal improvements and never obtained plumbing or electrical inspections before closing the walls, House ended up with a raze order, even though it had lots of attractive upgrades. The city insisted it be torn down (legal non conforming)

[VeronicaLodge]

i think if they sold the house during or as part of the divorce the negative equity that they would have to come up with to sell it would be split. but if one was going to keep the house, the other would not have to cough up anything for the negative equity as the keeper of the house takes on any risks associated with it, depending on how long they hang onto it, the market is bound to rebound and they would get the benefit of correction.

[LdiJ]

Originally Posted by VeronicaLodge

i think if they sold the house during or as part of the divorce the negative equity that they would have to come up with to sell it would be split. but if one was going to keep the house, the other would not have to cough up anything for the negative equity as the keeper of the house takes on any risks associated with it, depending on how long they hang onto it, the market is bound to rebound and they would get the benefit of correction.

Ditto to this response.

[LdiJ]

Originally Posted by nextwife

Excuse me? I handle default real estate, and know exactly what year some of the loans were done.

Deferred maintenance, neighborhood decline, flooding, mold, home in small town with no work available: all these are scenarios in which I've seen homes seriously negative. Oh yeah, there was that house in which the owners did all their own internal improvements and never obtained plumbing or electrical inspections before closing the walls, House ended up with a raze order, even though it had lots of attractive upgrades. The city insisted it be torn down (legal non conforming)

Those issues would be issues even in a normal/healthy housing market...and there was nothing in the original post to indicate any of those issues.