Force Sale of Home...

[WestWork]

What is the name of your state: Ohio

My wife is pursuing a Dissolution of Marriage and towards that end I received a draft of the proposed Division of Property which, frankly, appears to have come from Fantasy Island.

Background:
Married 22 years
House paid off in 2003 so no mortgage
No children so no issues there

The main sticking point will be the house; she wants to remain in the house and have me agree to a Quit Claim on the house. In return she will agree to having no interest or claim in my $200,000 401K. Problem is, among other things, I don't have a problem splitting the 401K and would like the house to be sold and split the proceeds as I would prefer to be a little more liquid coming out of this and not by early withdrawal from a 401K with its associated taxes and penalties.

At the end of the day, can I force the sale of the house? My financial contribution (income) to the household has always been double what hers was in addition to all the sweat equity associated with maintaining a home.

I have been staying at an alternate location off and on since 05/06/2011 when she had requested some time to figure out just how she wanted to proceed; nothing formal just a verbal request.

thanks

 

[Bali Hai]

What is the name of your state: Ohio

My wife is pursuing a Dissolution of Marriage and towards that end I received a draft of the proposed Division of Property which, frankly, appears to have come from Fantasy Island.

Background:
Married 22 years
House paid off in 2003 so no mortgage
No children so no issues there

The main sticking point will be the house; she wants to remain in the house and have me agree to a Quit Claim on the house. In return she will agree to having no interest or claim in my $200,000 401K. Problem is, among other things, I don't have a problem splitting the 401K and would like the house to be sold and split the proceeds as I would prefer to be a little more liquid coming out of this and not by early withdrawal from a 401K with its associated taxes and penalties.

At the end of the day, can I force the sale of the house? My financial contribution (income) to the household has always been double what hers was in addition to all the sweat equity associated with maintaining a home.

I have been staying at an alternate location off and on since 05/06/2011 when she had requested some time to figure out just how she wanted to proceed; nothing formal just a verbal request.

thanks

There will be no tax consequences splitting the 401k if done with a QDRO.

You can demand that she pay over your equity in the house, and, if she can't ask the court to order it sold.

 

[WestWork]

Thanks...I just want the house sold and to move on

 

[Ohiogal]

What is the name of your state: Ohio

My wife is pursuing a Dissolution of Marriage and towards that end I received a draft of the proposed Division of Property which, frankly, appears to have come from Fantasy Island.

Background:
Married 22 years
House paid off in 2003 so no mortgage
No children so no issues there

The main sticking point will be the house; she wants to remain in the house and have me agree to a Quit Claim on the house. In return she will agree to having no interest or claim in my $200,000 401K. Problem is, among other things, I don't have a problem splitting the 401K and would like the house to be sold and split the proceeds as I would prefer to be a little more liquid coming out of this and not by early withdrawal from a 401K with its associated taxes and penalties.

At the end of the day, can I force the sale of the house? My financial contribution (income) to the household has always been double what hers was in addition to all the sweat equity associated with maintaining a home.

I have been staying at an alternate location off and on since 05/06/2011 when she had requested some time to figure out just how she wanted to proceed; nothing formal just a verbal request.

thanks

Truthfully not necessarily. The court could rule that if half the marital equity in the house is less than $100,000 that she can stay in the house.

 

[Ohiogal]

There will be no tax consequences splitting the 401k if done with a QDRO.

You can demand that she pay over your equity in the house, and, if she can't ask the court to order it sold.

Not necessarily. Ohio is equitable distribution. If his half of the marital equity in the house is less than $100,000, the court can (and has) order(ed) that one party keeps all the retirement and the other can keep the house.

 

[Bali Hai]

Truthfully not necessarily. The court could rule that if half the marital equity in the house is less than $100,000 that she can stay in the house.

Care to elaborate?

 

[Bali Hai]

Not necessarily. Ohio is equitable distribution. If his half of the marital equity in the house is less than $100,000, the court can (and has) order(ed) that one party keeps all the retirement and the other can keep the house.

Of course you are aware that a $100k 401k does not equal $100k equity in a home.

 

[Ohiogal]

Of course you are aware that a $100k 401k does not equal $100k equity in a home.

Actually it can if the 100k would be QDRO'd. And what is the value of the home? Fair market value, at what would it appraise. Depending on where in Ohio and what type of home -- the home itself may be worth less than $100k. And even if it is appraised at that -- well guess what -- it may not get the amount of the appraisal. Homes in Ohio are still sitting for MONTHS before they sell IF they sell.

 

[Bali Hai]

Actually it can if the 100k would be QDRO'd. And what is the value of the home? Fair market value, at what would it appraise. Depending on where in Ohio and what type of home -- the home itself may be worth less than $100k. And even if it is appraised at that -- well guess what -- it may not get the amount of the appraisal. Homes in Ohio are still sitting for MONTHS before they sell IF they sell.

Well let's just say for illustration, half of the 401K equals $100k and half of the sale equity is $100k.

 

[Ohiogal]

Well let's just say for illustration, half of the 401K equals $100k and half of the sale equity is $100k.

It is very possible that the court can order he keeps the 401k and she keeps the house.

 

[Bali Hai]

Actually it can if the 100k would be QDRO'd. And what is the value of the home? Fair market value, at what would it appraise. Depending on where in Ohio and what type of home -- the home itself may be worth less than $100k. And even if it is appraised at that -- well guess what -- it may not get the amount of the appraisal. Homes in Ohio are still sitting for MONTHS before they sell IF they sell.

Well we won't know any of this for sure until the house is put on the market.

And yes, I'm aware of what equitable distribution means. It means whatever the judge says it means period.

 

[Bali Hai]

It is very possible that the court can order he keeps the 401k and she keeps the house.

That's not a fair division. Boneheaded decisions like that produce Bali Hai's.

 

[Ohiogal]

That's not a fair division. Boneheaded decisions like that produce Bali Hai's.

You can't say that that is not a fair division. Why? Because you don't know what the home is worth.

 

[ecmst12]

That's a perfectly fair division. Actually it's a better deal for him since his 401k will continue to increase in value until retirement, likely faster than any real estate would in this market, so his 100k will end up being worth more to him in the long run then the house will to her.

At any rate, can she afford to pay for the house on her own? Will she be able to refinance the remaining mortgage in her name alone? If she won't be able to get your name off the mortgage, that is a LEGITIMATE reason not to agree to let her keep the house.

 

[Bali Hai]

You can't say that that is not a fair division. Why? Because you don't know what the home is worth.

In my example, I said half the sale equity equals $100k, and, half the 401k account value equals $100k. In that case the home equity equals a full 100k, the 401k account does not. If divided that way, it would not be a fair division.

OP does not have access to the 401k without penalties and taxes to pay. The stbx immediately has the full value of the home.