# Any lawyers or financial advisors out there?- how does asset/debt division work?



## maxter (May 24, 2011)

I can't seem to get my brain around this stuff! OK here is the summary:

house- $200,000 w/$40,000 left on mortgage
HELOC- $20,000 left to pay
401K- $140,000 (and still falling!)
IRA- hers is worth $6,000 more than mine
Classic Car- $10,000 asset
Credit Card debt- $3,500

So my understanding is you add up all the assets, subtract the debts, and what is left is split 50/50 in my state. Well you can't split the remainder if it's tied up in real property (ie. house or car) without selling them. We don't want to sell the house. One of us will get it and the other will get bought out somehow. Anyway, what happens to the combined $60,000 in mortgage & HELOC debt? I think it gets split 50/50 so I'm responsible for $30,000 and so is she. But to reconcile the two debts that make up the $60,000, each of us would have to get a $30,000 loan and pay off the two originals to get it divided up evenly. If that reasoning is correct, my W can't cover her half. She doesn't have the income. From there I get lost as to what needs to happen. Any guidance would be appreciated.


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## Sod (Aug 20, 2011)

It varies state to state. I just went to a lawyer recently and this is what they told me. All debt and assets are 50/50 (including pre-marriage in my state). Dont forget to value EVERYTHING. The appliances that are staying, co-signed loans, TV's, artwork etc. They all get assigned a value and are claimed during settlement negotiations.

I have a similar issue with Wife wanting to keep house and the new car she bought which I co-signed 3 weeks before she wanted to separate. If your name is on the loans, then she would have to refinance or buy you outright. If she cannot, then the judge can order a sale within a certain timeframe.

and to be clear, I am not a lawyer


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## upset/confused (Jul 26, 2011)

Im not a lawyer, but I have been told to trade assets to equal out. Say for instance, we have land worth $50K, but I have liquid savings saved during the marriage so we agreed that I would relinquish interest in the land if he leaves all my case interests alone.


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## maxter (May 24, 2011)

Yes, I think I understand the concept of trading assets to equal things out. It's the shared debt that is getting me. From what Sod is saying it's as I feared. She wants the house, but cannot afford the remaining debt so it may become a forced sale.

The main reason is we both want the kids to have a stable home, the only one they know, so that means they need to stay in our current house. Then on top of that she wants to stay here to be with them which I think in her mind means full custody with visitation for me. I'm going for 50/50 joint custody, so I don't think it really matters who's in the house, we would each get to see the kids on equal time. So I'm thinking I might have to keep the house because I can pay the remaining debt and she gets an apartment.

The attorney consultation didn't get into the details of this but I gotta know how this can play out. I'm already resolved to the fact that she gets half of everything (as a reward for doing the most immoral, unconscionable act of betrayal ever). YES I AM SEETHING MAD and my hatred for her is growing daily. So I'm not looking for advantage- just to see how we can keep the kids in their house and still be able to survive financially.


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## Sod (Aug 20, 2011)

Honestly, your best way to resolve this is to come to some kind of agreement between the two of you. The courts have guidelines and the main focus is ensuring the kids are taken care of. If you can get some kind of agreement that satisfies both of you, the courts should accept as long as there is clear accountability for BOTH parties contributing to the child cost calculators. These can change depending on custody. With 50/50, their is usually a child support calculator that determines the total each party pays with the difference going to the party who earns the least.

If you can work something out for the assets outside of lawyers or even using collaboration, you may both be happier with the outcome. Plus you can usually avoid the amazingly expensive lawyer fees that reduce the joint assets even further. Negotiation is key here - consider trade offs (ie spousal support for a period of time vs. an asset now)


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## smithvan1981 (Mar 27, 2012)

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