Archive for the ‘Divorce’ Category

Keeping the house makes for a messy divorce

It’s not just a matter of who keeps the home. Loans, liens and other financial issues can preclude a clean split.

“If you’re still linked through the house, then you’re not really divorced,” says Kelly Lise Murray, a Harvard-trained lawyer and Nashville real estate agent.

People tend to underestimate the true cost of homeownership, drastically overstating the remaining spouse’s ability to afford the place, Murray says.

Even in a friendly divorce, certain key expenses are overlooked. Lawn care, homeowners association fees, even the basic costs of maintenance are among the costs that are rarely considered, either by the courts or the splitting spouses.

And then there’s the even bigger issue of hidden debt. Ideally, there will have been no secrets between the husband and wife. But money is a major cause of divorce, and in many cases, one spouse has no clue that the other has run up big bills that have become undisclosed liens against the property.

“I see it a lot,” says Murray, whose goal is to reform divorce law as it pertains to real estate, one state at a time. “It’s frequent. And what you don’t know during your divorce can hurt you long after the marriage is over.”

Fortunately, a major real estate mistake is preventable — but only during your divorce, not afterward. So Murray recommends doing due diligence and gathering information from more financial and real estate experts early in the divorce process. That way, you can make a more informed decision about whether you really want to keep the place or not.

In most divorces, the spouses determine what the house is worth, and the one who gives up the place is usually given a credit of some sort for his or her half of the equity the couple have in the place. Typically, the parties split the equity based on an appraisal. So if an appraiser says the house is worth, say, $300,000 and they owe $200,000, the “out spouse” gives up his or her claim to a $50,000 equity stake for, perhaps, $50,000 in stocks and bonds.

But along with that appraisal, Murray says, the “house spouse” should obtain an independent, third-party inspection of the property to determine whether there are any latent defects that could change its value.

“You wouldn’t buy a house without an inspection, so why would you accept one in a divorce without an inspection?” Murray asks. “What if something’s wrong or about to go wrong? You can use the inspector’s report as a punch list and either use the marital assets to make the necessary repairs or reduce the value of the property accordingly.”

Make sure to ask your inspector to estimate the remaining life of the property’s major appliances and systems. If something is on its last legs, you’ll want to know in advance so you can adjust for that as well. And while you’re at it, order a termite inspection — the damage those little bugs cause is often significant.

The real estate divorce specialist, whose self-published book “Divorce This House: When Keeping Your House Equals Losing Your Divorce” will be out this month, wants spouses to have two title searches, one as soon as possible after the divorce process begins and the other shortly before the divorce is finalized.

The first will uncover any unknown liens, encumbrances or clouds on the title that may have been placed by one spouse without the other’s knowledge. The second will uncover anything placed on the title during the proceedings, such as a lien filed by the out spouse’s attorney to cover his fees.

The more people follow these guidelines, divorce realty specialist Murray believes, the more likely they will end up selling the home and moving on. Disposing of the house during the divorce is far less risky than afterward, she says, and helps protect each spouse from the other’s financial problems.

“It’s the only way to be truly divorced,” she says. “Your spouse’s post-divorce debts become your debts if his name is still on the title. If the creditor files a lien, you will be unable to sell or refinance until the debt is paid.”

Don’t be fooled, either, into thinking that signing a quitclaim deed will get you out of harm’s way. A quitclaim will get your spouse off the title but not off the mortgage.

To truly divorce your house, Murray says there are only two ways to go: Sell the place or refinance it. “Financial exposure is extinguished when the house is sold or individually refinanced pursuant to Divorce,” she says. “Otherwise, either spouse or both remain legally and financially at risk, often for years after they split.”

All of these issues and others are preventable during the divorce, but they’re not easily fixed afterward.

Sherry Crabtree Ortiz
http://www.articlesbase.com/divorce-articles/keeping-the-house-makes-for-a-messy-divorce-746592.html

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Divorce is the termination of marriage and this can happen due to many reasons. It is one of the most harrowing experiences that a person can face in his or her life. This situation arises when there occurs some problems in the lives of the husband and wife and they are not able to cope with it. To take care of all the legal aspects a divorce lawyer who has the experience and the expertise is required. Lawyers expertise in various areas and people who are seeking divorce from their spouses must find a good divorce lawyer to handle all the legal; aspect of it.

A divorce lawyer NYC represents his client’s case in the court of law and puts all his effort and talent in winning the case. Being located in New York city, one can get assistance of any experienced lawyers who can present the case in the court. Divorce lawyer NYC struggles hard to give the case maximum attention and explores all the options that can help in winning the case. The lawyers will be very much loyal and faithful towards their client’s case. He will consider each and every point in the case to get the divorce certificate for his client.

In a divorce case, there are various factors that have to be taken into consideration by the lawyer, like child custody, asset division, compensation and many more related things. These are some of the basic issues that a lawyer must take into consideration. Children suffer the utmost in this scenario. After taking care of all these points, a lawyer can successfully help the client in getting the divorce. The lawyer will definitely try to get the court decision in favor of the client. Divorce lawyer has to observe that every point that he or she presents in the court before the judge, has to be supported by convincing reasons. So that it can make the case strong enough to get the justice in the client’s favor.

In the court of law, the lawyer as well as the client must keep endurance and understanding so that both of them can mutually co-operate each other. During the court session, the victim can face many tough situations along with mental pressure. For such situation the lawyer must take care to handle this properly. Before finalizing a lawyer, do make sure to know that the lawyer has the proper certification in law, since this will help you in following the legal procedures properly and the chances of winning the case will be maximum. Another thing that matters for hiring a lawyer is that he must have good knowledge of law and experience as well, so that it helps him find out every details and particulars

Apart from all these, the lawyer also needs to spend lot of time and money on the divorce case. Usually, many people are not able to hire a highly experienced lawyer because they are pricey. A good and reputed divorce lawyer will certainly ask for big money. But one can also find an affordable lawyer who will charge very nominal and so one can easily strive for the case. One can take references of the lawyer from those people who have gone through these tough situations. Well, there are also many organizations that involve themselves in providing inexpensive services to the people seeking divorce and other associated issues such as child custody.

damey
http://www.articlesbase.com/law-articles/divorce-lawyer-nyc-will-help-you-in-getting-divorce-easily-137792.html

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As common sense and statistics tell us, the leading cause of marital discord is money. Therefore, it is not surprising that many times divorce inventories have more red numbers than black ones.

Media sources often portray Hollywood stars of “power couples” divorcing. Included with the typical hype may be which party will get the mansion, vacation home, or car collection, but rarely is there any coverage about how the parties will divide debt.

The hard truth is that debt, just like assets, are included in the community estate. No matter what your own moral compass may register regarding your and your spouse’s debt, Texas case law establishes rules that might surprise you. First, debt incurred during the marriage is presumed to be community debt. See Cockerham v. Cockerham, 527 S.W.2d 162, 171 (Tex. 1975). There must be a sufficient amount of evidence to rebut this presumption.

Despite well established case law, Texas divorce decrees contain sections entitled “Debt to Husband” and “Debt to Wife”, which seemingly assign responsibility for each debt. These sections of the decree will identify each creditor, the account number, and account balance. At the close of the divorce proceedings, the divorced couple has a lengthy document called a final decree of divorce. The husband, wife, their attorneys, and the judge sign the final decree. Often times the parties order a certified copy of their divorce decree, throw it in a drawer or the safe deposit box, and rarely look at it again unless there are children and custody issues involved.

It may be months or years later when the phone rings and one of the parties is greeted by the monotone utterances of a bill collector reading a script off the computer screen. The dialogue may go something like this:

Bob the Bill Collector: “This is Bob with XYZ Visa. I’m calling because your account is 60 days past due, and I need to know when you plan to remit the past due amount and begin making payments.”

You: “What are you talking about? That’s my ex’s account. Our divorce decree says so. I haven’t been married to him/her in over (whatever time frame)! Call that deadbeat for the money.”

Bob: “Well, Mr. or Ms. So and So, that doesn’t mean you don’t owe the debt if your ex defaults.”

You: “I have a certified court order signed by me, my ex, our attorneys, and the judge saying that I don’t owe you anything for that account. That account is the ex’s problem. When you find him/her, let me know because he/she owes me money, too!”

Bob: “Your divorce decree might say you aren’t responsible, but the law says you are. Why don’t you give me a check by phone and we can get you on a payment plan.”

You: “Are you dense?! Did you hear anything I just said?! I’m not responsible and I’m not paying you one red cent on any of that debt. Call the ex but stop hounding me!”

Bob: “Mr. or Ms. So and So, I did hear you, and you’re wrong. No matter what your divorce decree says, you owe XYZ Visa. If you don’t begin making payments, XYZ Visa will report this delinquent account to the credit reporting agencies, and take action up to and including litigation.”

I’ll let you fill in the closing dialogue for yourself. You are angry and hang up the phone. You may think that Bob, located at some call center hundreds of miles away, has no idea what he’s talking about.

As unsettling as it may be, Bob is right. Unless the XYZ Visa was a party to your divorce suit and agreed to the terms of the final decree, you owe the money. It is highly unusual for a husband and wife or their attorneys to implead creditors into divorce actions due to complex legal issues such as jurisdiction and venue on both the state and federal level.

To understand how you could possibly be responsible for debt assigned to your ex, you must rewind to the point in time when the credit account was opened. You will need to look at the original account agreement. Almost no one keeps those documents, so order a copy of your credit report from one of the big three credit reporting agencies (EquiFax, Experian, or TransUnion). If the account shows up on your report, then you were more than likely a party to the credit agreement. Despite how the divorce decree allocates the debts (both secured and unsecured), the Court has no authority to modify the contractual obligations between the spouses and the creditor.

To say it another way, the court cannot take away the creditor’s right to proceed against either spouse(s) for payment of a community debt that was incurred prior to the decree. See Blake v. Amoco Fed. Credit Union, 900 S.W.2d 108 (Tex. App. – Houston [14th Dist.] 1995, no writ).

Let’s presume the account was originally opened in both your names and the creditor was looking to both you and your spouse’s income and assets to repay the obligation. This means that you are both responsible for the debt. But what about the divorce decree that spells out which assets and liabilities you and your ex were assigned? Is it a worthless piece of paper? No.

You will not be able to file a motion to enforce the divorce decree to get the defaulting spouse to pay the debt. An enforcement action will only assist if there was specific property, such as a vehicle, brokerage account, or personal property, the other spouse failed to turn over. But what about the debt? All is not lost. You could file an action for breach of contract against the defaulting spouse. The divorce decree is a binding contract that both parties voluntarily signed before the court.

If your ex has defaulted on one or multiple obligations, a suit for breach of contract may be cold comfort. As the old saying goes, you can’t squeeze blood from a turnip. Nevertheless, if you pursue this option, your damages may include any money you agreed to pay the creditor to keep the account out of collections, interest, and other miscellaneous expenses, such as attorney’s fees if any are incurred.

Depending on the size of the debt that the defaulting party hasn’t paid, you could seek relief in small claims court. Texas small claims courts have jurisdiction from $0.01 up to $5,000.00. These courts are designed for individuals who want to represent themselves and avoid hiring an attorney. This is where people go to argue the “do right” law. However, if the amount in controversy is greater than $5,000.00, then you must file suit in a county court, county court at law, or a district court with jurisdiction over the matter. At this point, you may consider hiring an attorney to prosecute the claim if there’s a reasonable possibility you could collect from the defaulting spouse. If possible, never let things get to this point by utilizing some of the suggestions outlined below.

Before you go to court or sign the final decree of divorce, you should research each and every account that the decree references no matter if that account falls under the “Husband” or “Wife” section. You both need to be aware how the accounts were established, and who and what the creditor deems liable. It may be in your best interests to refinance jointly held debt and establish the debt in each individual’s name if that is possible. If you or your spouse’s credit score is not strong enough to take this route, then you may consider liquidating assets to repay the debt before the divorce is final and close the account. It will be cold comfort to pay off a debt only to find out that your ex ran up a bunch of charges. A method may be to sell a car, a house, real property, or take a 401-K loan prior to finalizing the divorce to pay off debt. Because a mortgage and car loan can have long terms of payments, it may behoove you to sell those assets and let the other party acquire them on his or her own credit. By paying off those assets, those will no longer appear as debts on your credit report or create potential future problems if the other party fails to make payments to the creditor.

After your divorce is final, you may consider taking these actions:

1. Closing all joint accounts with a low balance or zero balance.

2. Request a credit report from one of the big three credit reporting agencies 90 days after the divorce is final. Look for any errors or discrepancies and aggressively challenge them in writing.

3. Ask each creditor to send you a duplicate notice for the joint accounts – even if the ex was assigned this account. Monitor to ensure that payments are being made on a regular, timely basis.

4. Make an offer for accord and satisfaction – basically, offer the creditor an amount of money in exchange for a release of your liability on the account assigned to your ex.

5. Communicate with the big three credit reporting agencies to notify them of the divorce and any name changes.

6. Create a debt reduction plan. There are many excellent resources available, such as Consumer Credit Counseling Services, Dave Ramsey, or a church based debt reduction plan.

Bottom line – your credit score is an asset just like your home or car. In fact, if you don’t have a good credit score, your ability to obtain consumer or business financing may be extremely limited.

Shannon Cavers is a Houston, Texas based lawyer practicing in divorce, family law and probate. More information and articles can be found at: Houston Divorce Lawyer

Shannon Cavers
http://www.articlesbase.com/divorce-articles/divorce-and-debt-98096.html

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In the United States, there are statistics that indicate that half of all marriages will end up in a divorce or legal separation. Often people do not differentiate between divorce and legal separation. Both divorce and legal separation refer to the situation when a couple decides not to live together anymore. But being separated is much different than being divorced.

What does legal separation mean? Legal separation generally refers to a court order which acknowledges that a couple is no longer living together and that all the issues regarding the marriage have been resolved. A legal separation generally means that both parties reached an agreement concerning child custody, child visitation, child support, spousal support or alimony, distribution of property, attorney fees, and personal conduct. However, in a legal separation both parties remain married to each other. Indeed spouses who are just legally separated are not allowed to marry another person.

Divorce, also known as a decree of dissolution of marriage, is also a court order but it is for the purpose to dissolve or terminate a marriage. Both parties are allowed to marry another person following a divorce since they have returned to an unmarried status. An annulment differs from a divorce on the ground that this process is meant at simply canceling a marriage.

What are the benefits of a legal separation? Legal separation often takes place when both parties prefer to stay married for religious reasons. That’s why legal separation is often coined catholic legal separation since it preserves the religious marriage. Legal separation is not only pursued for religious reasons, but also for tax reasons. Unlike a divorce, the non-custodial parent may be able to deduct from his/her income taxes spousal support payments. Some also prefer not to wait for the state statutory waiting period for termination of marital status. That’s one of the reasons why a legal separation is often pursued to set the parameters for dealing with one another while living separate and apart while keeping the married status, and leaving an opportunity for a reunion or resumption of marriage. However being legally separated is not a requirement before filing a divorce. In other words, a legal separation is not a prerequisite of the dissolution of a marriage or Divorce.

If you are considering a legal separation, divorce, or dissolution of marriage you would be wise to consult an attorney who can inform you legally about your particular divorce or legal separation matter.

© 2007 Child Custody Coach

Child Custody Coach supplies information, online materials, and coaching services to parents in the field of child custody, namely, divorce, child custody and visitation, child custody evaluations, 730 evaluations, parenting, and all issues related to child custody and divorce. “How to Win Child Custody – Proven Strategies that can Win You Custody and Save You Thousands in Attorney Cost!” is a unique child custody strategy guide written by The Custody Coach and made available by Child Custody Coach in an easy to read, understand, and apply E-Book format. Custody Match is an online consumer and family law attorney matching service to help you in your search for the right attorney for your divorce or child custody case. Custody Match can help you find the right family law attorney, divorce lawyer, or child custody attorney in your area.

Steven Carlson
http://www.articlesbase.com/divorce-articles/divorce-divorce-and-legal-separation-96010.html

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Divorce is indeed one of the most traumatic situations that can happen in someone’s life. In other words, divorce is the end of a married life as the husband and wife separate from each other. Their relationship is in problem and so they decide to get separated. Due to some reason, they are not able to cope up with each other and thus they decide to get separated from each other. Well, marriage is one such thing through which almost every person undergoes. Marriage and divorce are two such diverse things that many people may have to face this situation. Every body gets married with the intention to lead a happy and peaceful life. No one marries with the purpose of getting divorce, but sometimes it may happen that divorce may become the last restore out of a really ugly situation in someone life. So, to deal with this kind of situation, a best divorce lawyer is one who helps the victim to get the divorce.

Divorce is really a harrowing experience of someone’s life. This is a case that definitely needs a lawyer who will assist the couples in legal matters to get separated. Best Divorce lawyer New York helps its clients in getting the decision in their favour. A Divorce lawyer is meant to represent his clients through the case in the court of law. The best divorce lawyer is well efficient to help out his client as he is well familiar with all the legal rules and laws. There are many qualified and experienced divorce lawyers in New York who work towards guiding couples willing to get divorced. Whenever there is a case of divorce, best divorce lawyer New York has to consider every step with caution as it is one of the most serious matters in case of family law.

No matters in which part of the United States the victim is residing and so one can consider any best divorce lawyer that one want .There are certain things that one needs to look into before hiring a best divorce lawyer. The lawyer must be certified so that one can believe that the lawyer is efficient enough to handle your case. One can consult another person whoever has undergone through such painful experience in their life. The victim can also look into yellow pages that help will him in finding the perfect lawyer. Today, there are online websites that provide some information regarding an efficient lawyer. One can look into the total experiences he has to handle the case very efficiently. Well, the lawyers are also very much dedicated to bring the case in the favour of his client. The experience and talent of the client does help in making him to turn the case whenever he feels.

Best divorce lawyer has to be very cautious that every point that he or she puts in front of the judge has to be supported by valid reasons so that a fair decision can be taken. Best divorce lawyer New York needs to have an idea about various situations and understanding, so that he can guide his client in a best possible manner. During the divorce session, the couples may have to go through mental pressure. The case may see a lot of problem in the matter of child custody, division of assets, deciding over the visiting time with child and others. These types of cases are sensitive issues that requires careful handling by a best divorce lawyer.

damey
http://www.articlesbase.com/law-articles/best-divorce-lawyer-new-york-helps-to-make-lawsuit-favor-of-the-client-138475.html

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