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House Dispute

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kristynab

Junior Member
I am in the middle of divorce in the State of Wisconsin. My husband and I have agreed on most things but one. He does not feel that I am entitled to any of the house that we bought over six years ago. Wisconsin is a marital property state. We both worked hard for that house and he feels that he is the only one entitled to it. I am willing to sign off on it if he buys me out. I need to know if the buy out would be the amount of the equity built on the house or the value of the house itself. The house is in Port Washington WI and the value has been steadily rising since the purchase. It has increased by over 50,000 in the past six years.

I have been very fair with him as I am not asking for half of his 401K or pension. We have split everything else and have tried to keep things from getting ugly but this is one issue that he will not come to any agreement with.

Again please let me know if I am entitled to half of the actual value of the house or if it is just the equity that has been built. Thank you.
 


pojo2

Senior Member
You do realize that even if you sign the deed over to him that you and your credit record are still on the line for the Mortgage don't you? For you to get rid of any responsibility he needs to refinance the loan, with you signing the deed to him at the closing of his loan.
 

LdiJ

Senior Member
kristynab said:
I am in the middle of divorce in the State of Wisconsin. My husband and I have agreed on most things but one. He does not feel that I am entitled to any of the house that we bought over six years ago. Wisconsin is a marital property state. We both worked hard for that house and he feels that he is the only one entitled to it. I am willing to sign off on it if he buys me out. I need to know if the buy out would be the amount of the equity built on the house or the value of the house itself. The house is in Port Washington WI and the value has been steadily rising since the purchase. It has increased by over 50,000 in the past six years.

I have been very fair with him as I am not asking for half of his 401K or pension. We have split everything else and have tried to keep things from getting ugly but this is one issue that he will not come to any agreement with.

Again please let me know if I am entitled to half of the actual value of the house or if it is just the equity that has been built. Thank you.
You are entitled to a share of the house. It would be half of the equity in the home...not just the equity due to the mortgage being paid down, but also the equity due to appreciation. You need to require that he refinance the mortgage in his name only, for enough money to cover the existing mortgage plus the amount needed to buy you out.

Don't budge on this one. If he won't agree then let it go to court so that the judge will order him to do so. If he can't qualify for the mortgage on his own, then the house needs to be sold and the proceeds split.
 

BelizeBreeze

Senior Member
before ANYONE can answer this question correctly, you need to provide at least one answer yourself.

What funds were used to purchase the home?
 

kristynab

Junior Member
I just wanted to thank everyone that has responded to this question. In answer to BelizeBreeze they were joint funds. Half of the down payment was money that I had received in a settlement from a car accident and the other half came from his 401K. We both worked full time jobs. The first 6 months of owning the house I actually worked 2 full time jobs in order to be sure that we never fell behind in paying our bills as we had more than doubled what we had been paying for rent.
 

BelizeBreeze

Senior Member
Then, since marital assets were used to purchase the home, it also becomes a marital asset and each spouse is deemed to have an equal interest in the home.

The reason I asked is because Wisconsin is very strict in it's application of marital and separate property with only three classes of separate property:

1. property inherited by either spouse;
2. property received as a gift by either spouse; or
3. property paid for by funds acquired by inheritance or gift.

Active appreciation is also a marital asset. Active appreciation occurs when the value of an asset increases because of an act by the either of the parties during the marriage. Capital improvements to real estate during a marriage may create a marital interest since a capital improvement is likely to add to the property’s value.

So, tell hubby to make you an offer or you will file a Partition lawsuit to sell the home and divide the proceeds.
 

LdiJ

Senior Member
and do not, under any circumstances, sign a quit claim deed prior to either recieving your money, or at a closing where your money is being handed to you by the title company.
 

kristynab

Junior Member
I have two questions at this point.

First is to BelizeBreeze: On a house with a taxable value of 180,000 what would be a fair offer?

The second is to LdiJ: What is a quit claim deed?

I apologize if these seem like very stupid questions but having never had to deal with a divorce before and this being our very first house I just want to be sure that he does not cheat me out of what is also rightfully mine. He has already done enough of that.

Thank you all again for all of your wonderful help.
 

nextwife

Senior Member
He can refi and pay you off based upon value minus payoffs and half the prorations (such as your share of the property taxes from 1/1 to closing date, because the bill for this year won't come until Dec.)

He may want to contact some local banks and thrifts, such as Ozaukee Bank, Marine Bank, Associated, North Shore, M&I (they had a low cost Turbo Loan which didn't require an appraisal if you have a good LTV), Port Washington Savings, Grafton State, and so on. to refi you off the loan. They often have programs with low fees. Some local mortgage bankers also have some low fees.
 
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LdiJ

Senior Member
kristynab said:
I have two questions at this point.

First is to BelizeBreeze: On a house with a taxable value of 180,000 what would be a fair offer?
Its not the taxable value of the house that matters. Its the appraised value (you should have an appraisal done) minus the existing mortgage that equals the equity......and its the equity that has to be divided.

The second is to LdiJ: What is a quit claim deed?
A quit claim deed is a document that you would have to sign relinquishing ownership in the house. You don't sign that until you either get paid, or are signing it at closing in conjunction with being paid.
 

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