What To Do Next?

[Ms Millie]

What is the name of your state?CA

A good friend of mine's was served with divorce papers about two weeks ago. Their court date has been set for 9 months away. They have no children together, and have agreed to divide the cars and furniture. He does not want to live in the house, but wants his wife to buy him out. What should he do next? Is it normal to have a court date so far away?

 

[LdiJ]

What is the name of your state?CA

A good friend of mine's was served with divorce papers about two weeks ago. Their court date has been set for 9 months away. They have no children together, and have agreed to divide the cars and furniture. He does not want to live in the house, but wants his wife to buy him out. What should he do next? Is it normal to have a court date so far away?

Its a bit unusual but it must be a very backed up court system in his county.

What he should do next is sit down with his wife and see if she is willing to buy him out. That would require her refinancing the house in her name only, for enough money to cover the existing mortgage plus buy out his share. If she can't qualify to do that....then it may not be possible.

However, there is alot more to consider than just the house, cars and furniture. If they have any other assets (IRSs, 401Ks, investments etc.) those things all need to be taken into consideration as well in the property settlement.

For example: If he has 60k in a 401k and they also have 60k equity in the house, then maybe he would want to give up his equity in the house in exchange for her giving up her share of his 401K. That is just an example of course....just to give you an idea of things that need to be taken into consideration.

 

[Ms Millie]

That makes good sense. But they only have about 32k in 401k, which would give them about 16k each. I will advise him to talk to her about refinancing. Are there any other options if she is unable to qualify for the refinancing?

 

[LdiJ]

That makes good sense. But they only have about 32k in 401k, which would give them about 16k each. I will advise him to talk to her about refinancing. Are there any other options if she is unable to qualify for the refinancing?

If he doesn't want the house then the only other option would be to sell the house and split the proceeds.