Equity Payout

Adventurous_Fact2083 · 2024-06-16T21:19:19+00:00

I had the chance to get rid of the slut back in 2016. I dicked around and now paying for it. Absolutely make her get your name off that mortgage. Don’t do her any favors. This is war. Stop being nice to the bitch. Always keep in the back of your mind is a business deal and you are legally suing your wife. Friends are friends and business is business. Time to stop being nice.

Several-Eagle4141 · 2024-06-15T14:06:59+00:00

Are you a co signer ?

Strict-Front-2375 · 2024-06-15T14:01:59+00:00

The tax thing won't be an issue, but what will be an issue is your name will still be on the loan. That means at the very least, you'll unlikely be able to qualify for another loan for yourself later, as you will still have 100% of that loan payment count against your DTI (debt to income).

Worst case, if she misses a payment, it will wreck your credit too.

Sadly, with the massive whiplash from the lowest rates ever to rates higher ever than pre-collapse, and our good ole 50% divorce rate, a lot of people are in your situation and being forced to sell homes due their not being any way to just 'remove' someone from a loan under the vast majority of cases, yet unable to refinance.

Unless her parents have enough money to pay off the current loan themselves, then either also pay you off or your ex gets a line of credit for whatever your price is, the house probably needs to be sold.

I was 'lucky' because my ex didn't work, so I didn't put her on the loan, thinking I was 'helping' her, but in the end, it helped me when she cheat cheated two months later in April 2022 and left in July 2022, as by then rates had already skyrocketed to the point if I had to refinance to remove her, I could not have.

BlackSun56 · 2024-06-14T22:00:33+00:00

I was served papers in 2021, final in 2022. I was blessed to be able to lock my rate the morning Putin invaded Ukraine. I don’t know how people do it these days…. Best of luck.

DetroiterInTX · 2024-06-14T21:42:24+00:00

This has been said, but needs to be reiterated. If you are on the mortgage, require that she refinance within x days and pays you out. It doesn’t matter to the banks what your divorce decree says—if you are on the loan documents, you are also liable. You will have this as a debt you are expected to pay when you apply for a new mortgage, or any loan.

Only accept the money from her, not her parents. They can give her the money and then she gives it to you if she wants to go that route.

BlackSun56 · 2024-06-14T21:29:26+00:00

If your names are both on the loan you’ll have to refinance unless your mortgage is transferable to a new owner aka, her.

The deed is easier, you just sign the quitclaim.

UseResponsible4368 · 2024-06-14T21:13:00+00:00

Getting your name off the loan is as or more important than the deed. While you want both, if you're off the title/deed but not the loan, that means you're not entitled for the asset value and ownership of the house, but still on the hook for the loan.

Many ex-wives that get the house find themselves falling behind in mortgages, including those with strong incomes. And they realize the ex will be up the creek with them, so they simply default and let ex-husband deal with the money fallout - just like old times, hahaha

thro281 · 2024-06-14T21:01:22+00:00

Talk to a title company.

TweakerTheBarbarian · 2024-06-14T18:20:59+00:00

You need to get your name off the deed AND the loan. Getting off the deed isn’t too big of a deal. Getting off the loan is virtually impossible; no bank wants to let someone off the hook for a loan, hence the need to refinance. Do NOT agree to not refinancing, the bank can come after you if she defaults on the loan.

cschoonmaker · 2024-06-14T17:23:36+00:00

Nope, nope, nope and nope. Do it right or don't do it at all.

TheBoyBand · 2024-06-14T16:40:34+00:00

It’s a resounding NO! From here: …doesn’t want to refinance.”

TenuousOgre · 2024-06-14T16:16:54+00:00

Get your name off the deed.

Kylar26 · 2024-06-14T16:03:47+00:00

Yeah absolutely not. She needs to get it refinanced in her own name.

Don't do her any favors, especially one this big. She wouldn't do it for you if the situation was reversed.

This_Train340i · 2024-06-14T12:26:26+00:00

First, make sure the check comes from her and the exact amount is stated in the final judgment. A check from her parents who are not parties to the divorce will likely be deemed income by the IRS and thus subject to taxes. Second, if there is a mortgage, you must get your name off it because that affects your credit score and ability to get a mortgage yourself.

0neMinute · 2024-06-14T12:05:49+00:00

Have her look into loan assumptions, I’m assuming my loan and buying the wife out of her equity.

Efficient_Olive8251 · 2024-06-14T11:45:06+00:00

An exchange of assets during a divorce is not a taxable event (cash for equity).

You’ll have to do a quit claim deed to remove your name from the property ownership, but you’ll still be on the mortgage. This is what I did… I have mixed feelings about it, but I didn’t want to force my kids to move. Could affect your ability to purchase a home in the future fyi.

rsmiley77 · 2024-06-14T11:25:55+00:00

Yes. Don’t do it.

Your name will still be on the deed and financing papers. You’ll also owe both state and federal taxes on the payment.

So the benefits to you is a lump of cash now that you have to pay taxes on while hoping your mortgage company never has a reason to sue you for non payment from your ex…. Hard pass.

Title	Equity Payout
Author	garfobo
Upvotes	9
Comments	31
Date	June 14, 2024 10:39 AM UTC (2 years ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/1dfntfb/equity_payout/
Archive Link	https://theredarchive.com/r/Divorce_Men/equity-payout.1521524 https://theredarchive.com/post/1521524

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