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House/2nd Motrgage in Nevada ?'s

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C

Coping_In_Vegas

Guest
My wife and I, due to long0term difficulties, are considering a divorce. We have agreed to do a low-cost, no-fault divorce, but have questions regarding a house that we both own (we have a first and second mortgage). I am curious, because cost is definately an issue, if there is a way to give her the house (she wants it), that can remove me from financial responsibility for it. I see three choices: she keeps it, I keep it, or we sell it. Selling it is not a good option because with the second mortgage we would take a net loss of about $25,000 in my estimation. I have been told about a 'quick claim', to transfer ownership to her, but understand that it still leaves me on the mortgage, and I would like to avoid that if it is possible, because I would like to start over 'fresh'. I prefer to avoid 'cut-throat' methods because we are amenable, just not life companions. I'm not sure what facts are necessary to present, but I'll give some in case they help: 2 children (both school age, from previous marriages of hers, no adoption on my part). House and second mortgage are in both our names, with my credit being much better than hers, so refinancing in her name is highly unlikely. 1 car, again in joint name (she wants that also, so ok.) And I feel that whoever gets the house should have all the furnishings, etc. State is Nevada, we make fairly equal salaries, she has child care insurance on herself and the kids through her job, and receives child support from previous marriage on both kids... hmm... I think that covers it. Anyone know what NV law has to say?
Thanks,
Coping
 


T

Tracey

Guest
Unless she refinances or you get the banks to give you releases from the mortgages, giving her a quit claim deed just takes away your security while leaving you twisting in the wind on the loans.

If she can't afford to refinance the house, can she afford to make all the mortgage payments and pay the taxes and upkeep?

You could continue to own the house as tenants in common or as joint tenants. You would either decide who gets to live there or rent it out or both live there as separate households. (I know couples that do that. Honest.) Alternatively, you could draw up a contract specifying how much equity you both have (none right now) and who will make what payments and who will build up equity.

Is it really a financially sound idea to keep a house worth -$25k? Do you expect the real estate market to rebound within 5 years? Talk to an accountant or H&R Block worker. I think if you rent out the house, you can depreciate the loan amount rather than just the fair market value. You also get to deduct a large chunk of your life. :) This should give you a nice capital loss each year AND allow you to buy a new home and take the mortgage interest deduction on it. I doubt you'll get a positive cash flow, but you may lose less money each month this way.


Thinking outside the boxes,
Tracey

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
 

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