Assets - pre-separation Real Estate question

[noname123]

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

My wife and I are planning to separate and I was wondering what effect purchasing another property (for one of us - likely me) to live in BEFORE separation will effect calculation of support. Clearly I am trading an asset for an asset, but would having cash in the bank say $350k vs a house be treated as a different asset/burden.

I just don't know how the court is going to consider my "burden" with the end result (since my wife is a SAHM and has all but said she really doesn't feel like she can go back to work -- _maybe_ part time -- although with 2 sons 15/16 I don't see why she can't) will be me doubling all the things I pay for two households, taxes, upkeep, etc. I'd rather the court see that up front rather than her laying out all the projected costs she sees in her life to determine support without some concrete figures on how much it will cost me to live as well.

So does it make sense to purchase another property BEFORE separation?

 

[mistoffolees]

The nature of the asset won't matter very much - all that matters is the total marital equity. So it won't matter much if you have cash in the bank vs a home. Just make sure that there's enough cash or other assets so she can get her 1/2 of marital equity.

HOWEVER, having a home greatly reduces your flexibility. If for some reason you have to sell, it could get messy. Or, perhaps she is willing to trade more cash up front for less spousal support. If you have the cash, you can do that. If you have a home, it's harder.

As a general rule, I don't recommend buying a home while going through legal separation or divorce. If you can work out a deal with the seller to give you a lease/purchase option, it would be much better in the end.

As for her working, you can ask the court to impute a full time income based on her earning ability. That may well be just minimum wage since she has been out of the workforce. But her argument that she has to stay home with a 15 and 16 year old is just absurd - and no court is going to buy it (Other than perhaps in cases of special needs kids, of course).

 

[Bali Hai]

The nature of the asset won't matter very much - all that matters is the total marital equity. So it won't matter much if you have cash in the bank vs a home. Just make sure that there's enough cash or other assets so she can get her 1/2 of marital equity.

HOWEVER, having a home greatly reduces your flexibility. If for some reason you have to sell, it could get messy. Or, perhaps she is willing to trade more cash up front for less spousal support. If you have the cash, you can do that. If you have a home, it's harder.

As a general rule, I don't recommend buying a home while going through legal separation or divorce. If you can work out a deal with the seller to give you a lease/purchase option, it would be much better in the end.

As for her working, you can ask the court to impute a full time income based on her earning ability. That may well be just minimum wage since she has been out of the workforce. But her argument that she has to stay home with a 15 and 16 year old is just absurd - and no court is going to buy it (Other than perhaps in cases of special needs kids, of course).

"No court is going to buy it"? The court can't make her go to work, and the court WILL take this OP's money and give it to her for a very long time while she sits on her butt!

 

[Bali Hai]

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

My wife and I are planning to separate and I was wondering what effect purchasing another property (for one of us - likely me) to live in BEFORE separation will effect calculation of support. Clearly I am trading an asset for an asset, but would having cash in the bank say $350k vs a house be treated as a different asset/burden.

I just don't know how the court is going to consider my "burden" with the end result (since my wife is a SAHM and has all but said she really doesn't feel like she can go back to work -- _maybe_ part time -- although with 2 sons 15/16 I don't see why she can't) will be me doubling all the things I pay for two households, taxes, upkeep, etc. I'd rather the court see that up front rather than her laying out all the projected costs she sees in her life to determine support without some concrete figures on how much it will cost me to live as well.

So does it make sense to purchase another property BEFORE separation?

The court will take care of the children and keep her off the welfare roles with your money. The court doesn't care about your "burden".

 

[stealth2]

OP - in case you haven't noticed, Bali has an axe to grind. Being bitter does that to a person.

As misto stated, you can ask that she be imputed an income - but do expect it to be based on minimum wage. Something that you may want to consider is offering to help her while she gets training so that she can earn more than minimum, and be better able to support herself when the kids reach the age of majority. Given that she's likely somewhere between 35ish and 45ish, she's certainly not too old to go back to school - so I'd give serious thought to proposing that.

 

[LdiJ]

OP - in case you haven't noticed, Bali has an axe to grind. Being bitter does that to a person.

As misto stated, you can ask that she be imputed an income - but do expect it to be based on minimum wage. Something that you may want to consider is offering to help her while she gets training so that she can earn more than minimum, and be better able to support herself when the kids reach the age of majority. Given that she's likely somewhere between 35ish and 45ish, she's certainly not too old to go back to school - so I'd give serious thought to proposing that.

You might even consider putting off any divorce/separation while she is doing that. She will likely be close to a degree if she works at it, at about the same time that your children will be adults. The need for both alimony AND child support might be eliminated that way...or at least greatly reduced.

However, I will also add that running up separate living expenses for you, as a strategy, is not a sound one. You will both need to live within the means that you will have available to you AFTER the divorce/legal separation. That could very well mean that selling the marital home so that you can both downsize will be the necessary thing to do.

If you feel you must move out, then a stort term rental until things are finalized is a far more practical way to go.

 

[Bali Hai]

OP - in case you haven't noticed, Bali has an axe to grind. Being bitter does that to a person.

As misto stated, you can ask that she be imputed an income - but do expect it to be based on minimum wage. Something that you may want to consider is offering to help her while she gets training so that she can earn more than minimum, and be better able to support herself when the kids reach the age of majority. Given that she's likely somewhere between 35ish and 45ish, she's certainly not too old to go back to school - so I'd give serious thought to proposing that.

Telling this OP the truth means I have an axe to grind and am bitter?

If she wants to stay home and doesn't want to get a job or training for a job, or, anything else she doesn't want to do, that's exactly what she'll do, and the court is going to make sure that OP pays for it.

 

[stealth2]

Telling this OP the truth means I have an axe to grind and am bitter?

Reading your posts over the years shows you have an axe to grind. Come on, Bali - you can't deny that you're bitter.

 

[Bali Hai]

You might even consider putting off any divorce/separation while she is doing that. She will likely be close to a degree if she works at it, at about the same time that your children will be adults. The need for both alimony AND child support might be eliminated that way...or at least greatly reduced.

However, I will also add that running up separate living expenses for you, as a strategy, is not a sound one. You will both need to live within the means that you will have available to you AFTER the divorce/legal separation. That could very well mean that selling the marital home so that you can both downsize will be the necessary thing to do.

If you feel you must move out, then a stort term rental until things are finalized is a far more practical way to go.

Bad advice, the longer the marriage, the MORE likely alimony becomes.

OP has already stated that his stbx is not interested in working, so why do you think she would be interested in getting a degree?

From what I'm hearing from this OP, he should plan to pay heavy alimony payments for a long time.

 

[Bali Hai]

Reading your posts over the years shows you have an axe to grind. Come on, Bali - you can't deny that you're bitter.

I'm majapahit, bitter fruit.

 

[mistoffolees]

You might even consider putting off any divorce/separation while she is doing that. She will likely be close to a degree if she works at it, at about the same time that your children will be adults. The need for both alimony AND child support might be eliminated that way...or at least greatly reduced.

This is bad advice in most cases for a number of reasons:

1. It means several more years of paying 100% of her support.
2. OP indicates that she doesn't want to work - so he might pay for her education and STILL have only minimum wage imputed.
3. They have $350 K in cash in the banks, so it's a pretty good bet that OP is making a good income. If he's making a nice income, the amount of income she's likely to make starting out isn't likely to have much impact.
4. He's currently supporting the kids 100%, so waiting isn't going to change that. If he does it now, then his stbx is likely to have to pay at least a little.
5. The longer he waits, the greater the chance for alimony - or the greater the amount of alimony if it is ordered.