Who gets house profit? - Page 2 - Talk About Marriage
Financial Problems in Marriage When financial times are tough, it adds to the stress we deal with on a daily basis. This section is for talking about how financial problems affect our relationships and ways to cope.

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post #16 of 37 (permalink) Old 03-08-2016, 11:22 AM Thread Starter
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Re: Who gets house profit?

Why is that the priority over a 50/50 split of any profit?

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post #17 of 37 (permalink) Old 03-08-2016, 11:31 AM
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Re: Who gets house profit?

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His other house was acquired before the marriage which I also lived in and paid things like grocery bills, car loans, etc. The "newer" house was purchased 9 years ago, while we were married. The "newer" house has both of our names on the mortgage and deed. I am not on the deed, mortgage or home equity loan of "his" other house. He took the home equity loan out of "his" house he bought before we were married. The mortgage, deed and home equity loan are in HIS name only. We are still going through the divorce process. This is a big issue right now.
In my state the down payment would not have then been counted as a marital asset since it came from his sole property prior to the marriage and he'd get that back when the house sold. Any other money after the house is sold and closing costs/expenses are paid would be split evenly unless there was a prenup that said otherwise. Unfortunately, paying normal monthly expenses like the grocery bills and car loans won't change the first house as a premarital asset, at least in my state.

It sounds like he already offered to split the remaining money after his down payment is returned, which really seems pretty reasonable. I'd keep this issue away from the lawyers (there are much better ways to spend $300/hr IMO) if you also understand and agree that his offer is reasonable.
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post #18 of 37 (permalink) Old 03-08-2016, 11:34 AM Thread Starter
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Re: Who gets house profit?

If the investment was a loss for him, wouldn't it stand true that all stock market investors demand their money back after they lose profit or don't gain? I am not sure if that's correct, but it sure sounds like it. I didn't force his hand to sign those papers. He gave $46,000 of his money to "US", not just him. To our marriage investment.
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post #19 of 37 (permalink) Old 03-08-2016, 11:40 AM
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Re: Who gets house profit?

OP, you may be right. He took money from his previously owned house to put into the house you both own. While it would be FAIR to reimburse his down payment and then split any additional profits, the actual result may depend on your state's laws. He did not keep the down payment separate - he mingled his funds and yours, which in many places creates the presumption of a joint asset. You may legally be able to obtain half of ALL the profit, but morally you are not entitled to them, IMO.

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post #20 of 37 (permalink) Old 03-08-2016, 11:43 AM
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Re: Who gets house profit?

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I would love to stay in the house with my kids. Both of our names are on the mortgage and deed. But if his name comes off the mortgage, I will not be approved for another mortgage because my income is too low. Even though I would get some income on the house, enough to pay monthly mortgage, I still cant get approved for a mortgage.
His name can come off the deed but not the mortgage. The only real way to get someone's name off a mortgage is to refinance the loan without him or sell the house. A bank won't just remove someone's name from a mortgage loan because it doesn't benefit them in any way.
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post #21 of 37 (permalink) Old 03-08-2016, 11:44 AM
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Re: Who gets house profit?

Let's review what I think the facts are you provided:

Original purchase price = $469,000
Down Payment = $46,000 <-----This came from "his home equity loan"
Implied loan at the start $423,000
Current balance after
9 years of 108 payments $357,719<---- assumed 30 year term, 5.25% rate


Current value per you= $410,000
Less: Realtor commission (20,500)
Less: Loan balance (357,700)
Net Proceeds from sale $31,800<----- This is cash not "profit"

Less: Orig. down payment (46,000)
LOSS on sale= ($14,200)<------THIS is the profit or in this case (LOSS) on the deal.

Now, if there are other marital assets involved you may be able trade off your claim on those against getting more of the cash from the house but if the house is the sole asset in an equitable distribution state you will split the loss and owe $7,200 to him.

Hint - his salary is substantial, chances are there are some significant pension or 401K balances and you would have a claim on 1/2 the contributions and some of the earnings since marriage.
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post #22 of 37 (permalink) Old 03-08-2016, 11:47 AM
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Re: Who gets house profit?

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OP, you may be right. He took money from his previously owned house to put into the house you both own. While it would be FAIR to reimburse his down payment and then split any additional profits, the actual result may depend on your state's laws. He did not keep the down payment separate - he mingled his funds and yours, which in many places creates the presumption of a joint asset. You may legally be able to obtain half of ALL the profit, but morally you are not entitled to them, IMO.

There is no profit. People, stop calling it profit. Maybe the 46K counts as a gift and is therefore joint but in any case, the cash coming out of this deal is NOT profit.
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post #23 of 37 (permalink) Old 03-08-2016, 11:47 AM
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Re: Who gets house profit?

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If the investment was a loss for him, wouldn't it stand true that all stock market investors demand their money back after they lose profit or don't gain? I am not sure if that's correct, but it sure sounds like it. I didn't force his hand to sign those papers. He gave $46,000 of his money to "US", not just him. To our marriage investment.
In my state using his asset like that is not counted as comingling or a gift to the marriage (unless you have documentation that says otherwise). I know you want it to be, but that's just not how it works where I live. The good thing is any equity you two built up by paying the mortgage for those 9 years would be counted as a marital asset that would be split after his $46K is returned.

Basically it goes like this. Each of your premarital assets that haven't been comingled get returned to each of you as the first priority. Everything else that you acquired during the marriage is split evenly.
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post #24 of 37 (permalink) Old 03-08-2016, 11:48 AM Thread Starter
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Re: Who gets house profit?

Exactly refinance. Then he doesn't want his name on the deed or mortgage. Great. But when I need to fill out the paperwork I will not be able to qualify for a new mortgage. At least that's what the banks tell me.
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post #25 of 37 (permalink) Old 03-08-2016, 11:51 AM Thread Starter
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Re: Who gets house profit?

You're right its not a profit until after $46,000 is deducted from the profit and all closing costs are deducted for any profit , that's to say there will be a profit after the $46,000 is deducted or any money that is left.

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post #26 of 37 (permalink) Old 03-08-2016, 11:51 AM
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Re: Who gets house profit?

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Let's review what I think the facts are you provided:

Original purchase price = $469,000
Down Payment = $46,000 <-----This came from "his home equity loan"
Implied loan at the start $423,000
Current balance after
9 years of 108 payments $357,719<---- assumed 30 year term, 5.25% rate


Current value per you= $410,000
Less: Realtor commission (20,500)
Less: Loan balance (357,700)
Net Proceeds from sale $31,800<----- This is cash not "profit"

Less: Orig. down payment (46,000)
LOSS on sale= ($14,200)<------THIS is the profit or in this case (LOSS) on the deal.

Now, if there are other marital assets involved you may be able trade off your claim on those against getting more of the cash from the house but if the house is the sole asset in an equitable distribution state you will split the loss and owe $7,200 to him.

Hint - his salary is substantial, chances are there are some significant pension or 401K balances and you would have a claim on 1/2 the contributions and some of the earnings since marriage.
I'm hoping it was a 15 year loan at 3% APR!
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post #27 of 37 (permalink) Old 03-08-2016, 11:53 AM
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Re: Who gets house profit?

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Exactly refinance. Then he doesn't want his name on the deed or mortgage. Great. But when I need to fill out the paperwork I will not be able to qualify for a new mortgage. At least that's what the banks tell me.
Could you get a co-signer? Maybe your parents?
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post #28 of 37 (permalink) Old 03-08-2016, 11:58 AM Thread Starter
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Re: Who gets house profit?

Thank you. That pretty much sums it up. I hope it does sell for more then $410,000..the neighborhood has changed so it dropped prices.
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post #29 of 37 (permalink) Old 03-08-2016, 12:01 PM
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Re: Who gets house profit?

Just because you paid bills such as car or food or gas it's not your house. That house was in his name prior to meeting you and marrying you. You did not contribute to buy or to increase the value. So, in my state of NY you are not entitled to it because it was never a co-mingle assets.

Now, he took 40 something thousand of equity from house 1 and put into a new house(2) with both of your names, still does not make h 1 a co-mingled asset.

Now, if he state that the 46 thousand was a loan, then upon selling of H2 he is expecting to get repaid. If not and the funds was just put into H2 then, it co-migled and you both share equally in the sales proceeds.

Sounds like you really want that. Does he still have the home equity loan on h1? because who do you expect to pay for that? The house fairy.

Also, how do you have the rest of your money. Does he have his personal account and do you have yours? Is monies kept in joint account?
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post #30 of 37 (permalink) Old 03-08-2016, 12:03 PM
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Re: Who gets house profit?

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Originally Posted by Hopelessus View Post
If the investment was a loss for him, wouldn't it stand true that all stock market investors demand their money back after they lose profit or don't gain? I am not sure if that's correct, but it sure sounds like it. I didn't force his hand to sign those papers. He gave $46,000 of his money to "US", not just him. To our marriage investment.
This completely depends on your jurisdiction. Your attorney should know. If he doesn't give you an answer, spell it out for him: "I. Need. To. Know. Is. This. Marital. Equity. Or. Not. Yes or no?"

Because your H borrowed money for this, he may very well be able to claim his $46,000 back. It would be less likely if he had just used $46,000 he had laying around, or if he'd sold something to do it.

From an ethical standpoint, I would find it quite repulsive to expect your H to be straddled with the debt on his other property, and yet you want to claim the equity the debt was borrowed against as your own. Nothing just or fair in that, IMO.

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