Filing A NOD

[doucar]

This may be a lis pendens which puts the world on notice that a lawsuit is pending that may affect the title to the land, buy at your own risk.

 

[TrustUser]

thanks all, there has been fraud on the part of the loan agents. and an egregious misjudgment by the title company. the title company will respond to our complaint in about 2 weeks. if they dont pony up, we will probably be forced to sue all groups involved. apparently it is not just our loan, but others as well. the title company, part of the biggest one in the nation, has demonstrated the absolute poorest judgment in the world. to the point that i wonder if there was collusion involved between just the few people in title that would have been involved. it is absolutely the most ridiculously, stupid decision i have ever seen made in the real estate industry, if it truly was a mistake, and not collusion.

 

[TrustUser]

if a divorce goes to trial to distribute the assets, is there ever a time when one spouse is considered to be suing the other spouse ?

 

[LdiJ]

if a divorce goes to trial to distribute the assets, is there ever a time when one spouse is considered to be suing the other spouse ?

A divorce is technically a lawsuit. One spouse is suing the other for divorce.

 

[TrustUser]

thanks - just wanted to try to see how judge ascertains which assets are whose. and what happens when assets are in trusts, versus when not in a trust

 

[LdiJ]

thanks - just wanted to try to see how judge ascertains which assets are whose. and what happens when assets are in trusts, versus when not in a trust

The judge ascertains whose assets are whose based on state law. In pretty much all states premarital assets that have not been comingled are separate assets. The same applies to inheritances. Assets accrued during the marriage are marital assets in pretty much all states as well, and debts accrued during the marriage are mostly marital debts. Debts that go with assets stay with whoever gets the asset. Debts for things that benefit only one spouse (ie student loans if there is no alimony involved) often stay with that person. In community property states, community property law applies, in equitable division states judges have a little more leeway although things normally stay 50/50 on marital debts and assets barring any unusual circumstances.

When assets are in revocable trusts the trusts are usually ignored. When assets are in irrevocable trusts they are often the same as inheritances. If there is an irrevocable trust that is NOT an inheritance then it is going to be a special circumstances of some sort and it would be handled based on the special circumstances.

Somebody isn't going to get away with using a trust however, to try to turn marital assets into separate assets.

 

[TrustUser]

yea, i knew they couldnt place into a trust to escape. but i was curious what occurred if the property was already in a trust. most of these properties are in trusts, labeled with just the husband as trustee. he probably had most of the wealth before marriage.

 

[LdiJ]

yea, i knew they couldnt place into a trust to escape. but i was curious what occurred if the property was already in a trust. most of these properties are in trusts, labeled with just the husband as trustee. he probably had most of the wealth before marriage.

Again, if the trust is a revocable trust the assets are going to be treated as if they were not in a trust at all...just like they are treated for tax purposes. If he had most of the wealth before marriage and nothing was comingled, then the wealth is going to remain his sole property whether it's in a trust or not.

 

[TrustUser]

the irs treats them the same. but i am not sure that is true in states ? lets wait to see what tm says about that one.

 

[LdiJ]

the irs treats them the same. but i am not sure that is true in states ? lets wait to see what tm says about that one.

That is fine, but it is true in the states as well.

 

[Taxing Matters]

if a divorce goes to trial to distribute the assets, is there ever a time when one spouse is considered to be suing the other spouse ?

The entire divorce action is a lawsuit. The asset distribution is simply part of that lawsuit.

the irs treats them the same. but i am not sure that is true in states ? lets wait to see what tm says about that one.

Divorce courts are courts of equity, not of law. While the distinction between actions in equity and in law is not as significant today as it was a century ago, it still is important in certain types of actions. Divorce and bankruptcy being the two most common equitable actions. While a trust may only list one spouse as the beneficiary, a court may nevertheless reform or dissolve the trust or take other corrective action to achieve an equitable result in the divorce. This is true whether the trust is revocable or not, though there are more conditions that must be met and more hoops to jump through for the irrevocable trust. The judge is going to look at factors like when the trust was formed and funded, what the source of the funds were, who the beneficiaries and trustee are etc., in deciding how to proceed. Those beneficiaries who are not part of the divorce action may be allowed, in the case of an irrevocable trust, intervene to protect their beneficial interests in the trust.

For a revocable trust, it's very easy for the court. Both parties are under the jurisdiction of the court and one of the spouses has the power to revoke the trust. The court may simply order that party to exercise that revocation right and return the assets to the marital estate, and then from there distribute the assets as the court deems equitable, given the guidelines and limits on marital distributions the exist in federal and state law, of course.

 

[Taxing Matters]

yea, i knew they couldnt place into a trust to escape. but i was curious what occurred if the property was already in a trust. most of these properties are in trusts, labeled with just the husband as trustee. he probably had most of the wealth before marriage.

With a revocable trust in particular, the outcome will be pretty much the same as it would be if the the assets had never been in a trust. In a divorce action, in general the property a spouse held prior to the marriage is not subject to division in the divorce, whether that asset was in a revocable trust or owned directly by the spouse.

 

[TrustUser]

the loan agent supplied the title company with a fraudulent document, stating that the lenders were okay with the lis pendens. and believe it or not, the title company accepted it. or there was deliberate collusion. not really sure. cuz there is no lender on the planet that would agree to lending money, behind a pending court action with an UNDETERMINED AMOUNT.

it is an absolutely ridiculously ludicrous conclusion on the part of the title company. they are gonna get back to us in a couple weeks. if we arent paid for this mistake, we have no recourse but to sue them

 

[TrustUser]

the wife is the party who recorded the lis pendens. if the property is awarded to her, is our lien wiped off the books ? if the property is awarded to him, we could sue him (he is co-owner of the loan company)

 

[Taxing Matters]

the wife is the party who recorded the lis pendens. if the property is awarded to her, is our lien wiped off the books ? if the property is awarded to him, we could sue him (he is co-owner of the loan company)

You won't know the status until the court addressses the property division in the divorce. A lis pendens is not a lien in favor of either party. It is simply notice of a lawsuit in which the title and/or rights to the property are at issue. That's exactly why people avoid buying property (unless really cheap) that has a lis pendens on it. Your lien interest, if you have lien already filed before the lis pendens, should remain on the property but beyond that I can't guess what that lien interest would be worth as I don't have all the facts.