Sale of house? Divorce in Indiana

[Josh88]

Hello everyone, I am divorcing in Indiana. I am the petitioner if it matters. My wife moved out sept 2018 and I filed for divorce October 2018. My final hearing is in a few weeks. We have two houses, the primary residence and a rental property. At first, my wife was fine with her keeping the rental property (which is paid off) and me keeping the primary residence (which has about 50% equity). Both houses are in both of our names. Surprisingly, the value of the rental property is the same as the equity in the house.

Now my wife wants everything sold and to split the money. This is for personal reasons as she is sad that she moved out.

If we sold everything and split the money, she would end up with the same amount as if she sold her rental property and I kept my house. Can a judge force the sale of both homes if the judge sees that fact? I just don’t want to sell the house and move and I don’t see why I should have to since it’s a 50/50 split here. Just wanted to get some input about what to expect here. Thank you!

 

[LdiJ]

Hello everyone, I am divorcing in Indiana. I am the petitioner if it matters. My wife moved out sept 2018 and I filed for divorce October 2018. My final hearing is in a few weeks. We have two houses, the primary residence and a rental property. At first, my wife was fine with her keeping the rental property (which is paid off) and me keeping the primary residence (which has about 50% equity). Both houses are in both of our names. Surprisingly, the value of the rental property is the same as the equity in the house.

Now my wife wants everything sold and to split the money. This is for personal reasons as she is sad that she moved out.

If we sold everything and split the money, she would end up with the same amount as if she sold her rental property and I kept my house. Can a judge force the sale of both homes if the judge sees that fact? I just don’t want to sell the house and move and I don’t see why I should have to since it’s a 50/50 split here. Just wanted to get some input about what to expect here. Thank you!

The judge COULD order that all of the property be sold and the proceeds split. The judge would be less likely to do so if you can demonstrate with hard evidence that the value of the rental home is equal to the equity in the primary residence...and that your desire not to move is simply due to a desire not to move.

However that could all fall apart if you are not basing your equity in the primary residence and value of the rental home on recent appraisals...rather than past values.

 

[Josh88]

Thank you for the response, that makes sense. Now I have another question regarding the same issue. When my wife moved out, I signed a quit-claim deed from the rental property (transferring 100% ownership to her) and she signed a quit-claim deed for the primary residence (transferring 100% ownership to me). Since we are still legally married, are these quit-claim deeds even valid? Should I bring this up at the court date?

My reasons for not moving are that I have horrible credit with evictions and no income at the moment so I can't lease anywhere, also I have a Rottweiler which is a restricted breed. I know that these reasons are due to my own poor choices but I'd honestly be living in my car if I was forced to sell the house, and I hope that the judge can take that into consideration. In August, I actually moved out first and I got an apartment. Then she decided that she didn't want the house so she moved out (Sept) then I moved back in (that's when we signed the quit-claim deeds to each other) since I couldn't pay a lease and a mortgage and now got evicted from the apartment. My wife rented an apartment but receives rental income from the rental property.

As for the appraisal issue, I was going to list 5 homes that were sold within the last 90 days in the area for both homes and use that to calculate the value (I used to work in real estate so I know how to run comps), along with the "Zestimate" from the zillow real estate website. I am currently unemployed and really don't have the money to pay for two appraisals right now.

I am trying to be fair here, and I've tried to show her that it's a 50/50 split. I think it comes down to the fact that she is angry at me and knows how much I love this house and wants to hurt me, I don't think it's a money issue but more of a personal issue. I just wonder how the judge will view this situation? Thank you for taking the time to read this!

 

[LdiJ]

Thank you for the response, that makes sense. Now I have another question regarding the same issue. When my wife moved out, I signed a quit-claim deed from the rental property (transferring 100% ownership to her) and she signed a quit-claim deed for the primary residence (transferring 100% ownership to me). Since we are still legally married, are these quit-claim deeds even valid? Should I bring this up at the court date?

My reasons for not moving are that I have horrible credit with evictions and no income at the moment so I can't lease anywhere, also I have a Rottweiler which is a restricted breed. I know that these reasons are due to my own poor choices but I'd honestly be living in my car if I was forced to sell the house, and I hope that the judge can take that into consideration. In August, I actually moved out first and I got an apartment. Then she decided that she didn't want the house so she moved out (Sept) then I moved back in (that's when we signed the quit-claim deeds to each other) since I couldn't pay a lease and a mortgage and now got evicted from the apartment. My wife rented an apartment but receives rental income from the rental property.

As for the appraisal issue, I was going to list 5 homes that were sold within the last 90 days in the area for both homes and use that to calculate the value (I used to work in real estate so I know how to run comps), along with the "Zestimate" from the zillow real estate website. I am currently unemployed and really don't have the money to pay for two appraisals right now.

I am trying to be fair here, and I've tried to show her that it's a 50/50 split. I think it comes down to the fact that she is angry at me and knows how much I love this house and wants to hurt me, I don't think it's a money issue but more of a personal issue. I just wonder how the judge will view this situation? Thank you for taking the time to read this!

If you both have already signed quit claim deeds then you have already divided the properties. Its a done deal. Should she attempt to do anything else in court you need to demonstrate that to the judge. While its not impossible for a judge to order the transfers undone, its not at all likely that a judge would do so unless again, she could prove that you mislead her about the respective values of the properties.

 

[Josh88]

She told me that she was informed that the quit claim deeds are invalid since we are still married. I don’t believe this but I wanted to be sure. I will bring copies of the quit claim deeds to my court date. Do they still need to be listed in the divorce decree? I have to bring a “proposed” decree (stating how I want everything divided since I am the petitioner), so I want to prepare that accordingly.

 

[LdiJ]

She told me that she was informed that the quit claim deeds are invalid since we are still married. I don’t believe this but I wanted to be sure. I will bring copies of the quit claim deeds to my court date. Do they still need to be listed in the divorce decree? I have to bring a “proposed” decree (stating how I want everything divided since I am the petitioner), so I want to prepare that accordingly.

She is wrong. The fact that your divorce is not yet final has nothing to do with the validity of the quit claim deeds. You will want to list the properties in your divorce decree but state that they have already been divided and how they were divided.

 

[justalayman]

the quit claim deeds are important and the fact they were signed very recently means things have already been divided

BUT

If the divorce had not been filed, you each would begin to accrue interest in the property you deeded away due to the continuing marital relationship



You need to list the properties as assets but now individually owned due to the recent deeds. You are not needing to seek those properties be divided.


Since there is a mortgage on your property, and I presume it’s in both names, it is most likely you will be required to assume the mortgage liability and indemnify your wife for any claims made against her regardimg the property

Or possibly be required to refinance the property in your name only. If you can’t do that, the court may require you to sell it to remove your wife from the mortgage loan.

Your self appraisal is likely to get shot down by her attorney. It will be seen as self serving and surely not impartial. Plan on paying for a couple appraisals, or at least splitting the cost with her

 

[not2cleverRed]

Thank you for the response, that makes sense. Now I have another question regarding the same issue. When my wife moved out, I signed a quit-claim deed from the rental property (transferring 100% ownership to her) and she signed a quit-claim deed for the primary residence (transferring 100% ownership to me). Since we are still legally married, are these quit-claim deeds even valid? Should I bring this up at the court date?

My reasons for not moving are that I have horrible credit with evictions and no income at the moment so I can't lease anywhere, also I have a Rottweiler which is a restricted breed. I know that these reasons are due to my own poor choices but I'd honestly be living in my car if I was forced to sell the house, and I hope that the judge can take that into consideration. In August, I actually moved out first and I got an apartment. Then she decided that she didn't want the house so she moved out (Sept) then I moved back in (that's when we signed the quit-claim deeds to each other) since I couldn't pay a lease and a mortgage and now got evicted from the apartment. My wife rented an apartment but receives rental income from the rental property.

As for the appraisal issue, I was going to list 5 homes that were sold within the last 90 days in the area for both homes and use that to calculate the value (I used to work in real estate so I know how to run comps), along with the "Zestimate" from the zillow real estate website. I am currently unemployed and really don't have the money to pay for two appraisals right now.

I am trying to be fair here, and I've tried to show her that it's a 50/50 split. I think it comes down to the fact that she is angry at me and knows how much I love this house and wants to hurt me, I don't think it's a money issue but more of a personal issue. I just wonder how the judge will view this situation? Thank you for taking the time to read this!

No, hoping for pity or sympathy is a bad strategy, and horrible legal reason for you to have the house.

Since you have no income and have terrible credit, how are you going to get the mortgage refinanced in your name? How are you going to make payments on the mortgage, property taxes, etc.?

If the equity of the house and the fair market value of the rental are truly equivalent, then you need to be able to show that you can get everything refinanced in your name - or at least without her name on it.

 

[LdiJ]

No, hoping for pity or sympathy is a bad strategy, and horrible legal reason for you to have the house.

Since you have no income and have terrible credit, how are you going to get the mortgage refinanced in your name? How are you going to make payments on the mortgage, property taxes, etc.?

If the equity of the house and the fair market value of the rental are truly equivalent, then you need to be able to show that you can get everything refinanced in your name - or at least without her name on it.

Except, that the quit claim deeds have already been done, and already done after he filed for divorce. Unfortunately for his ex, she made a bad deal if her name is on the mortgage. There really is no guarantee that the judge would be amenable to re-opening that part of any property settlement. They both did it of their own free will.

 

[Ohiogal]

She is wrong. The fact that your divorce is not yet final has nothing to do with the validity of the quit claim deeds. You will want to list the properties in your divorce decree but state that they have already been divided and how they were divided.

LD is wrong. The properties are STILL marital property. They are until a judge makes a determination about them. Then quit claims should be done. IGNORE LD.

 

[not2cleverRed]

LD is wrong. The properties are STILL marital property. They are until a judge makes a determination about them. Then quit claims should be done. IGNORE LD.

The quit claims have already been done. That's why LD thinks that the wife has no leverage.

However, doesn't the law view marital property as being marital property, regardless of who it's titled to? You can have all sorts of assets (and debts) in your own name that are still, legally, marital assets (or debts).

I really think that OP's inability to financially take full responsibility for the marital home is reasonably concerning for his estranged wife, and a judge could order that if OP can't get the mortgage refinanced, something has to be done to make the split equitable - such as selling the property.

 

[Ohiogal]

The quit claims have already been done. That's why LD thinks that the wife has no leverage.

However, doesn't the law view marital property as being marital property, regardless of who it's titled to? You can have all sorts of assets (and debts) in your own name that are still, legally, marital assets (or debts).

I really think that OP's inability to financially take full responsibility for the marital home is reasonably concerning for his estranged wife, and a judge could order that if OP can't get the mortgage refinanced, something has to be done to make the split equitable - such as selling the property.

precisely. Hence why LD is misleading the OP and her comments are dangerous.

 

[LdiJ]

The quit claims have already been done. That's why LD thinks that the wife has no leverage.

However, doesn't the law view marital property as being marital property, regardless of who it's titled to? You can have all sorts of assets (and debts) in your own name that are still, legally, marital assets (or debts).

I really think that OP's inability to financially take full responsibility for the marital home is reasonably concerning for his estranged wife, and a judge could order that if OP can't get the mortgage refinanced, something has to be done to make the split equitable - such as selling the property.

The parties executed the quit claim deeds AFTER the divorce action was filed, or right about the same time as the divorce action was filed. That makes the quit claim deeds part of the property settlement in the divorce. I agree that if they had done the quit claim deeds months or years prior to filing for divorce that the properties would still be marital property and therefore still subject to division. However that is not what happened.

Could a judge set aside the quit claim deeds? Yes, a judge could do that. However the judge would have to have a darned good reason to do so. That is why I suggested that a lack of proper appraisals or some other material issue of fact could cause a judge to set them aside. Otherwise, they are part of already negotiated settlements and therefore already dealt with.

I agree that the fact that the OP is currently unemployed and therefore has no income is problematic, but we do not know what other financial resources the OP might currently have.

 

[justalayman]

Unless there was some shady issues involved (like the op using his real estate knowledge hid the true values of the property) , I believe a judge would be in error if he altered the already agreed upon split of the real estate.

The deeds are not invalid simply due to the divorce action. While a judge could invalidate them if there was cause to do so, it would be improper to invalidate them if the deal was entered into knowingly and willingly.