Question about assets

AirSailer · 2021-03-19T12:41:11+00:00

If an asset is purchased during the course of the marriage it is owned by both parties and will either need to be sold and the money split or one person will need to buy out the other. Refinancing is necessary when someone wishes to retain a property with a mortgage. A quit claim deed is used to relinquish ones interest in a property.

dad_bod_cargo_shorts · 2021-03-19T14:00:46+00:00

If the mortgage is in your name only she'll need to refinance it in her name, unless the mortgage is assumable (very unlikely)

If the primary residence was purchased prior to the marriage then your equity stake would be half of the appreciation while you were married. If it was purchased during the marriage your equity would be 50% of the total value. Same for the rental property.

So depending on the values of the two properties, it becomes a math exercise. I'd recommend having both of them professionally appraised.

Knave7575 · 2021-03-19T20:15:06+00:00

The courts will not have a problem with the asset switch, but the banks might. The courts would only have a problem if it was not an equal asset switch.

Example:

House is worth $400k

Rental property is worth $500k with a $300k mortgage. (and so is worth $200k)

Total value of your assets is $600k. If you guys want to walk away with the properties, the person getting the house will have to pay the person getting the rental property about $100k.

But, the person getting the rental property needs to now qualify for the $300k mortgage. The bank may or may not be willing to lend the one of you $300,000. Now, with my specific examples the person getting the rental property is also getting $100k in essentially cash, so that might help make the bank happy if that is used to pay down the mortgage somewhat.

Your numbers of course might be entirely different.

Title	Question about assets
Author	bladefish1
Upvotes	6
Comments	14
Date	March 19, 2021 12:28 PM UTC (5 years ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/m8g50k/question_about_assets/
Archive Link	https://theredarchive.com/r/Divorce_Men/question-about-assets.1190601 https://theredarchive.com/post/1190601

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