premarital assets used to buy marital home

What is the name of your state? N.Y.
Never done this before, but here it goes... I have been married for 2.5 years and we have a 2 yr old son. My wife is a stay at home mother, college graduate. I bought a house and renovated it with a liquidated premarital inheritance. We have started divorce proceedings and I am curious to know what if anything, she is entitled to. Please help. Thank you.What is the name of your state?

How is title held? Have you any mortgage, to which you have paid using marital income?

premarital assets

Thanks Nextwife. I hold title. I have paid the mortgage for 10 months. I think there is about a 2000.00 difference in the mortgage principal. In addition, a 20,000.00 loan(with a promissory note) from my parents, was also used to buy/fix the home. There is also about 14,000.00 in C.C. debt. We are considering using one lawyer and he will cost 5,000.00. Are all marital debts also subject to equal distribution, including the lawyer? Thanks.

jth said:

Thanks Nextwife. I hold title. I have paid the mortgage for 10 months. I think there is about a 2000.00 difference in the mortgage principal. In addition, a 20,000.00 loan(with a promissory note) from my parents, was also used to buy/fix the home. There is also about 14,000.00 in C.C. debt. We are considering using one lawyer and he will cost 5,000.00. Are all marital debts also subject to equal distribution, including the lawyer? Thanks.

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Ideally, you should each have your own attorney - even if it's a friendly divorce. It's hard, if not impossible, for an attorney to fulfill his obligations to both sides at the same time.

Your wife will presumably get 1/2 of the marital portion of the home and debts - that is the gain in equity (either from paying down the mortgage or increase in home value) during the marriage.

mistoffolees said:

Ideally, you should each have your own attorney - even if it's a friendly divorce. It's hard, if not impossible, for an attorney to fulfill his obligations to both sides at the same time.

Your wife will presumably get 1/2 of the marital portion of the home and debts - that is the gain in equity (either from paying down the mortgage or increase in home value) during the marriage.

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And, considering the deflated market, that could be nothing.

Wonder if she's also entitled to half the marital LOSS in value?

premarital assets

Thanks. From all the research I've done, it seems that if a premarital asset is transfered to a home and there is a undisputed paper trail, it is credited back to the spouse that provided it. Everything else (equity in 10 months) is split at some percentage (you're right, the housing market is working to my benefit). I am going to get my own attorney. She is already calling our attorney "Her Attorney". I did the math and if you take my separate asset investment out and add up all debt, the house is in debt 15,000+/-. I gave her the breakdown and offered to refinance and give her 10,000.00 ( I want to keep the house. I killed myself renovating the thing.) I, and all my friends thought this was too generous. What do you think?

jth said:

Thanks. From all the research I've done, it seems that if a premarital asset is transfered to a home and there is a undisputed paper trail, it is credited back to the spouse that provided it. Everything else (equity in 10 months) is split at some percentage (you're right, the housing market is working to my benefit). I am going to get my own attorney. She is already calling our attorney "Her Attorney". I did the math and if you take my separate asset investment out and add up all debt, the house is in debt 15,000+/-. I gave her the breakdown and offered to refinance and give her 10,000.00 ( I want to keep the house. I killed myself renovating the thing.) I, and all my friends thought this was too generous. What do you think?

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That's not a question that can be answered on an internet forum. We don't know you, your financial situation (aside from what you are saying) and we only have 1 side of the story.

Best to consult an attorney.

premarital assets

Thanks, but ask a question. I didn't come here trying to give half the story. I am trying to give the honest situation, not the limited picture. What would be the point...I'm only looking for advice. what additional info is needed? let me know...

If it was as simple as "ask a question" then I would. However, neither I nor anyone else on this board has the time to run down the next 100 questions with you to figure out if your offer is reasonable. That's what you pay your respective attorney's for.

And believe me, everyone comes on here and says they are telling the whole story, however in the instances where the other half has popped up, we have gotten the rest of the story. So, your story is your story coming from your side of things. In my line of work, there is everyone's version of the absolute truth. Call me a skeptic.

jth said:

Thanks. From all the research I've done, it seems that if a premarital asset is transfered to a home and there is a undisputed paper trail, it is credited back to the spouse that provided it. Everything else (equity in 10 months) is split at some percentage (you're right, the housing market is working to my benefit). I am going to get my own attorney. She is already calling our attorney "Her Attorney". I did the math and if you take my separate asset investment out and add up all debt, the house is in debt 15,000+/-. I gave her the breakdown and offered to refinance and give her 10,000.00 ( I want to keep the house. I killed myself renovating the thing.) I, and all my friends thought this was too generous. What do you think?

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No one here can answer your question. There are three issues:

1. What is the house worth to you?
2. What is the house worth to your ex?
3. What is the house worth in the fair market?

If 1 is greater than 2, then you should be able to work something out by paying slightly more than half the difference to your ex.

If 2 is greater than 1, then you give the house to your ex and she pays you slightly more than half.

If both #1 and #2 are less than #3, then you may be better off selling the house.

If #1 and #2 are greater than #3, then whoever wants it most is going to have to cut into their other assets to buy the other one out.

And then the big kicker. If the two of you can't reach an agreement, the judge is going to have to decide what to do - and you'll probably split #3.

If the home is bought in YOUR name, from YOUR premarital assets, improved using non-marital funds, and has not appreciated in value there is NO WAY you should agree to her having the home. Obviously she should also bear no responsibilty for any remaining debts related to the home. And it's doubtful she could refi the loan to pay you back your investment if premarital monies.

nextwife said:

If the home is bought in YOUR name, from YOUR premarital assets, improved using non-marital funds, and has not appreciated in value there is NO WAY you should agree to her having the home. Obviously she should also bear no responsibilty for any remaining debts related to the home. And it's doubtful she could refi the loan to pay you back your investment if premarital monies.

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The judge also can't order him to sell it or award the house to her, if he is the only one on the deed. The judge can order him to pay her 1/2 of any equity that accrued during the marriage, but he/she cannot order anything else.

LdiJ said:

The judge also can't order him to sell it or award the house to her, if he is the only one on the deed. The judge can order him to pay her 1/2 of any equity that accrued during the marriage, but he/she cannot order anything else.

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Unless there are not enough other assets for him to pay her share. In that case, I believe the judge can order the home sold.

mistoffolees said:

Unless there are not enough other assets for him to pay her share. In that case, I believe the judge can order the home sold.

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No, not if the deed is in his name only. The house itself is his sole property, only the marital equity can be divided. A lien could be placed on the home, but a judge cannot force him to sell it if he is the only one on the deed.

I can't imagine any scenario in which a spouse of maybe 30 MONTHS would be awarded so much of a house, bought and paid for with PREMARITAL monies, NOT co-mingled, IN THIS LOUSY real estate market, that any sale or lien would be necessary.