# Home Equity split in divorce question



## MSC71 (Aug 1, 2012)

If there is any equity and we split it, will the fact that I have paid the house note alone for the last 1 1/2 years to to the tune of $28k factor into it all?? Wouldn't that be subtracted from any equity she may get? Also, what if there was negative equity in the house? Would she have to pay me then? Both of our names are on the mortgage. This is for the state of Georgia.


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## littlejaz (Oct 17, 2013)

Don't know about the state of Georgia, but in my state (equitable state) no it does not matter because all income during the marriage is considered marital money, unless you can show that you paid it with separate money that was never co-mingled.

Not sure about the negative equity.


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## Pluto2 (Aug 17, 2011)

She's not going to pay you.
If you used marital property (your salary) to pay the marital debt during the marriage, it remains marital property. And a marital debt is split just like any other marital property.
Based on this, she's not going to pay you. Its the cost of being married in a downward housing market


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## PBear (Nov 16, 2010)

littlejaz said:


> Don't know about the state of Georgia, but in my state (equitable state) no it does not matter because all income during the marriage is considered marital money, unless you can show that you paid it with separate money that was never co-mingled.
> 
> Not sure about the negative equity.


By definition, I think the funds BECOME co-mingled as soon as they're put into a shared resource. Like your mortgage. 

To the OP, in general, it would make no difference that you paid more on the mortgage than her, otherwise every SAHM would be screwed. As far as "negative equity" goes... The mortgage and house are just two of the liabilities and assets that make up your combined net worth. At the end of the day, maybe she can take on another debt, or you get more of your other belongings if you take on the house and it's debt. There's many ways to divide things up. 

C
_Posted via Mobile Device_


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## MSC71 (Aug 1, 2012)

Thanks. I talked to my lawyer today. He told me the same thing as you all. Its marriage property.


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## EleGirl (Dec 3, 2011)

Hi...

Yep marriage property. Mortgage was paid out of community income.

Are both of you on the mortgage?

Was the house purchased before or after marriage?

What was the source of the down payment?


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## MSC71 (Aug 1, 2012)

I guess that means our debts are community debt? Even though we have had seperate accounts since the seperation?


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## PBear (Nov 16, 2010)

MSC71 said:


> I guess that means our debts are community debt? Even though we have had seperate accounts since the seperation?


Around here, I believe it's property division (assets and liabilities) as of separation as far as separate accounts go. But if you had a joint credit card or line of credit, it might be a different story. You'll want to sever any financial ties ASAP. But yes, debt accumulated dusting the marriage is typically marital. Student loans might be a separate issue, but you should ask your lawyer.

C


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## MSC71 (Aug 1, 2012)

Well we seperated accounts in May of 2012 when she moved out. We had credit cards paid off at that time. I have accumulated debt since then and she has too.


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## gulfwarvet (Jan 7, 2013)

About the only assets during a divorce that are not considered marital property are inheritance or a personal injury settlement and I would imagine that would vary from state to state.
Debt can be assigned to a party after separation if it involves things non-essential to ordinary living expenses.
Parties are generally responsible for their own attorney expenses and any credit card debt.
I got back most of the expenses I paid on the children pertaining to doctor,dentist etc. I did not get clothes,school lunches etc. for the three years my divorce ran. Even though we had joint custody my ex pretty much refused to buy the kids anything and basically parlayed every cent she had into the fight.


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## BeachGuy (Jul 6, 2011)

If you're going to get half the equity you are VERY lucky. We have about $70K in equity and she's most likely going to get every penny, even though she hasn't worked since 3 years BEFORE we bought the house. Custodial parent and long-term marriage crap. The laws are SO unfair. "Equitable distribution" my arse.


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## MSC71 (Aug 1, 2012)

*Re: Re: Home Equity split in divorce question*



BeachGuy said:


> If you're going to get half the equity you are VERY lucky. We have about $70K in equity and she's most likely going to get every penny, even though she hasn't worked since 3 years BEFORE we bought the house. Custodial parent and long-term marriage crap. The laws are SO unfair. "Equitable distribution" my arse.


She has the kids with her most of time? How often do you see them??


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## thunderstruck (May 9, 2012)

MSC71 said:


> Well we seperated accounts in May of 2012 when she moved out. We had credit cards paid off at that time. I have accumulated debt since then and she has too.


Do a credit freeze with the three credit agencies. You don't want her to sign up for new cards and add you on the account. I may be wrong, but you could end up on the hook for those as well.


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## MSC71 (Aug 1, 2012)

*Re: Re: Home Equity split in divorce question*



thunderstruck said:


> Do a credit freeze with the three credit agencies. You don't want her to sign up for new cards and add you on the account. I may be wrong, but you could end up on the hook for those as well.


No. We have had finances separate since May 2012. I was wondering if she will be on the hook for some of my debt since then. Sucks that I kept house and paid the note for last 18 months and she still can get half.


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## vellocet (Oct 18, 2013)

MSC71 said:


> If there is any equity and we split it, will the fact that I have paid the house note alone for the last 1 1/2 years to to the tune of $28k factor into it all??


It should. This is what my attorney argued, which is why he pressed for a quit claim deed in return for an estimated amount of equity up to that point. That way the remaining time I was in the house alone and paying the mortgage, it was all mine from that point on.

Or, if she expects 1/2 of all equity, then she needs to be paying the mortgage too. Talk to your attorney about that.


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## MSC71 (Aug 1, 2012)

We can bring it up. Its up to the judge though in the end


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## MSC71 (Aug 1, 2012)

This is the same judge who tossed out her restraining order. Maybe that is a good thing. Seems level headed.


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## vellocet (Oct 18, 2013)

MSC71, if you are ever out there an lurking, how about an update. Hope you were able to do something with a quit claim deed.


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