House buyout impact on alimony or child support

[grumpyandhappy]

I am getting divorced in California.

We're looking at a pretty even split. 50/50 custody. 50/50 asset split. Similar income situations.

If one side decides to buy out the other from the house, he/she will have to assume the existing mortgage and get 300k loan on top.

That will significantly increase the mortgage payments for the party who keeps the house and create a 300k investment for the other.

My question: can the party who takes on a 2nd mortgage go back to the courts to ask for alimony and/or spousal support since now the financial situation is really unbalanced.

 

[AlmostThere]

I am getting divorced in California.

We're looking at a pretty even split. 50/50 custody. 50/50 asset split. Similar income situations.

If one side decides to buy out the other from the house, he/she will have to assume the existing mortgage and get 300k loan on top.

That will significantly increase the mortgage payments for the party who keeps the house and create a 300k investment for the other.

My question: can the party who takes on a 2nd mortgage go back to the courts to ask for alimony and/or spousal support since now the financial situation is really unbalanced.

I can't speak to Alimony, but for child support (as in your subject), it makes zero difference. If you can't afford the house while paying your other obligations, you can't afford the house. Child support should be the first thing you pay, just as if your child were living with you full time, your child's needs would come before financing a house with a too large mortgage.

 

[grumpyandhappy]

I can't speak to Alimony, but for child support (as in your subject), it makes zero difference. If you can't afford the house while paying your other obligations, you can't afford the house. Child support should be the first thing you pay, just as if your child were living with you full time, your child's needs would come before financing a house with a too large mortgage.

Thank you. It's not the issue here. I won't have the house. I will have 300k. Can I now be liable for additional support if my ex can't pay for the two mortgages?

If we sell, we split everything 50/50 and we're not looking for any support in that case. We're about even financially now and will be splitting any expenses related to kids.

 

[zddoodah]

I am getting divorced in California.

So...still married. Has the dissolution been filed, or not yet?

50/50 custody.

Not sure what you mean by that, but a 50/50 time split is RARELY practical.

If one side decides to buy out the other from the house, he/she will have to assume the existing mortgage and get 300k loan on top.

That will significantly increase the mortgage payments for the party who keeps the house and create a 300k investment for the other.

I'm not sure I follow. I think you're saying that you have $600k in equity and that neither of you has the cash to pay the other. Is that correct? If so, then I get that it would increase mortgage payments, but I don't understand the bit about a $300k investment. Are you simply saying that the spouse who doesn't get the house would have $300k that could be invested?

can the party who takes on a 2nd mortgage go back to the courts to ask for alimony and/or spousal support since now the financial situation is really unbalanced.

The buyout would be part of the marital settlement agreement, which would also include a provision for spousal support (or no spousal support).

That being said, one spouse incurring debt to buy out the other spouse's interest in the marital home would not justify an award of spousal support.

Even if you're not going to litigate any of the issues, you should be seeking advice from a local family law attorney.

 

[AlmostThere]

Thank you. It's not the issue here. I won't have the house. I will have 300k. Can I now be liable for additional support if my ex can't pay for the two mortgages?

If we sell, we split everything 50/50 and we're not looking for any support in that case. We're about even financially now and will be splitting any expenses related to kids.

Here is your answer - https://childsupport.ca.gov/guideline-calculator/#

Try it with and without the larger mortgage.

 

[grumpyandhappy]

Thank you. The last two responses got me to where I wanted. I am still not 100% but this is enough to document what I would discuss with a lawyer or mediator depending on how we proceed. Appreciate everyone's help!

 

[LdiJ]

I am getting divorced in California.

We're looking at a pretty even split. 50/50 custody. 50/50 asset split. Similar income situations.

If one side decides to buy out the other from the house, he/she will have to assume the existing mortgage and get 300k loan on top.

That will significantly increase the mortgage payments for the party who keeps the house and create a 300k investment for the other.

My question: can the party who takes on a 2nd mortgage go back to the courts to ask for alimony and/or spousal support since now the financial situation is really unbalanced.

If one person buys the other out they will have to refinance the home for enough to pay off the mortgage and pay the other party their share of the equity in the home. For example: The house is worth 800k. There is 300k in equity. The person who wants to keep the house would have to qualify for a mortgage of 650k. The remaining principle plus 1/2 of the equity. They would then have to pay 150k to the other party.

They would NOT have two mortgages. They would have one new mortgage for the combined principal and equity payout. The person getting the equity payout should insist upon this otherwise they could be on the hook for the original mortgage.