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Dividing assets

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puyallup83

Junior Member
I don't know how to deal with an aspect of being able to retain my home in a possible divorce. I plan to keep it if possible, and refinance enough to give my husband his share of equity. Our house is worth 250K, which we refinanced last fall. In the refinance we rolled in the 30K balance of a home equity loan we obtained in spring of 2008. The loan was used so my husband could buy his business. Our mortgage balance is currently 150K, leaving us with an equity of 100K, or 50K for each of us. Is is reasonable to deduct his 30K from his share, leaving him with 20K for me to "pay off" to him? Is there a different way to look at this? If it became a fight, would the courts look at this 30K (debt) as something we have to split? (We live in WA state, a community prop. state, and his business is in his name only (and not a corp). Thanks for your assistance.
 


LdiJ

Senior Member
I don't know how to deal with an aspect of being able to retain my home in a possible divorce. I plan to keep it if possible, and refinance enough to give my husband his share of equity. Our house is worth 250K, which we refinanced last fall. In the refinance we rolled in the 30K balance of a home equity loan we obtained in spring of 2008. The loan was used so my husband could buy his business. Our mortgage balance is currently 150K, leaving us with an equity of 100K, or 50K for each of us. Is is reasonable to deduct his 30K from his share, leaving him with 20K for me to "pay off" to him? Is there a different way to look at this? If it became a fight, would the courts look at this 30K (debt) as something we have to split? (We live in WA state, a community prop. state, and his business is in his name only (and not a corp). Thanks for your assistance.
If a court would allow you to do that, it wouldn't work quite that way.

What you would do is remove the 30k from the loan balance, which would leave total equity of 130k or 65k for each of you. You would then deduct the 30k from his 65k, leaving a 35k amount due to him.

Now, that is assuming that the court will allow that to happen...what the court might order instead, is that you get 1/2 of the value of his business...or you trade other assets to offset 1/2 of the value of his business.
 

puyallup83

Junior Member
However...

If I'm the one paying the mortgage (including the 30K we rolled up in the mortgage), I would be giving him more than his fair share, wouldn't I? This doesn't include the interest I'll be paying on that 30K over the years to come. I don't want half of his business, as I want him to be able to make a living. As it is, I earn more than him and assume that I'll end up paying him child support for our 14 year old son. We do have some money and a fixer upper cabin that I would be happy tp "trade" for some of his equity. Thanks for your help and giving me things to consider.
 

Bali Hai

Senior Member
If I'm the one paying the mortgage (including the 30K we rolled up in the mortgage), I would be giving him more than his fair share, wouldn't I? This doesn't include the interest I'll be paying on that 30K over the years to come. I don't want half of his business, as I want him to be able to make a living. As it is, I earn more than him and assume that I'll end up paying him child support for our 14 year old son. We do have some money and a fixer upper cabin that I would be happy tp "trade" for some of his equity. Thanks for your help and giving me things to consider.
Your plans should include paying him alimony on top of the child support.

But don't worry, it's tax deductible.
 

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