When Buying A Home Make Sure Your Name Is On Deed

by Robin Roshkind, Esquire, West Palm Beach, Florida

Divorce clients don’t realize that what they do years earlier when the marriage is in the “good times” stage, can have huge ramifications, when, years later, they are facing a divorce that they never imagined would happen.   Take buying a home, for example.

If prior to the wedding a man puts up all the money, takes the mortgage and note in his name only, and purchases a home with his name only on the deed, later, when he marries and the marriage fails, in divorce court, the husband can change the locks, throw the wife out on the street and she then has to fight in divorce court for an interest that is legally hers by virtue of the marriage.  It makes life difficult when a spouse is not named on the deed to a marital home.  

Many spouses who have good credit, put their names on a mortgage and note as a favor for the other spouse, who may have bad credit.  When a divorce occurs, the “good credit spouse” is at a disadvantage if the mortgage and note go into default caused by the other spouse.  That also makes it more difficult to refinance to get your name off the obligations.  “Good credit spouses” oftentimes are lulled into the marriage in the first place just for their good credit.  What happens is many husbands and wives end up getting divorced, with a newly acquired bad credit, and their name attached to an obligation on an asset they no longer have.  If the other spouse cannot qualify for a refinance, the house should be sold, but this doesn’t always happen.  Divorcing couples need to be careful about the language in their marital settlement agreements concerning the marital homes. 

For more information about this or other divorce topics, call one of the divorce lawyers at ROBIN ROSHKIND, P.A. at 561 835 9091 or click on the Firm’s web site at http://www.familylawwpb.com for more information.

 

Divorcing Homeowners May Have Serious Problems

By Robin Roshkind, Esquire, West Palm Beach, Florida

If you are divorcing in Palm Beach County, Florida, and own a home that your spouse  is going to keep, if there is a mortgage on that home, it could cause problems for you.  Here is why:  your spouse is going to buy you out of any equity in the home.  In order to do that, he/she needs to refinance the home.  He/she may not qualify, so for you to get your check, you may need to co sign a new mortgage, which leaves you liable if your spouse defaults.

In another scenario, if there is NO EQUITY in the marital home, and your spouse is going to keep the home and live there,  you will need to quit claim deed the home to your spouse.  Just because the home is now hers/his, does NOT release you from your original liability of the original mortgage you both took out as a married couple.  UNLESS your spouse can qualify for a new mortgage, by way of a refinance, on his/her own, you will still be liable to the lender for the original mortgage on a home you do not own, if your spouse cannot or will  not pay the obligation.  In other words your good credit may be at the mercy of your ex.

It used to be that divorcing couples would fight over which one of them keeps the marital home.  Now couples are fighting over which one of them does not keep the marital home.  From the lender’s standpoint, nothing has changed unless there is a refinance in the sole name of the spouse who is going to live there.   The only other alternative is a short sale to a third party.  Should that occur the deficiency belongs to both of you.

For more information call one of the divorce lawyers at ROBIN ROSHKIND, P.A. at 561-835-9091 or click on the Firm’s web site at www.familylawwpb.com for more information.

Your credit and divorce…how it effects your future.

By Robin Roshkind, Esquire, West Palm Beach, Florida

We all know the importance of a good credit score…without it, you can’t buy a car, get a mortgage, rent an apartment, or even get a good job.

Unfortunately, bad marriages can lead to bad credit for the innocent spouse.  A spiteful shopaholic spouse can run up joint credit card accounts; a business gone bad can incur huge debt; boats and car purchases can put both the husband and the wife into serious debt; so can job loss and not paying bills.

The fact is your credit can be restored after divorce.  Here are some helpful hints to restoring your credit:

1.  Don’t close accounts in your name only.  15% of your credit score is your credit history and 10% is your diversity.

2.  Rebuild your credit with secured credit cards that are tied to savings accounts.  If you put $3000 into a savings account you can charge up to that amount each month.  Then pay it off.

3.  Continue to pay monthly minimums, or even over pay the minimum.

4.  Keep expenses down; do not incur additional debt.

For more information about divorce and credit call one of the attorneys at ROBIN ROSHKIND, P.A. at 561-835-9091 or click on the Firm’s web site at www.familylawwpb.com.

Know your tax and IRS rights.

By Robin Roshkind, Esquire, West Palm Beach, Florida

With constant fighting over finances, couples in this economy are especially hit hard.  A divorce can ruin your credit, cause lingering debt long after the divorce is over, and have the IRS breathing down your neck.

The following tips are for those divorced spouses who are subject to an IRS tax audit:

1.  Know that you can challenge an auditor’s decision.

2.  Penalties that are assessed, can be cancelled if you show a good faith effort to pay.

3.  Audits can be by correspondence instead of face to face.

4.  You can ask the IRS for an installment plan to pay any money owed.

5.  IRS notices may be incorrect.  You can challenge notices and sometimes they are cancelled.

6.  There is a problem resolution office of the IRS to resolve disputes.

7.  You have the right to appeal anyIRS decision within 30 days of receipt.

Often divorce lawyers work with accountants, bookkeepers and CPAs to gather financial information.  There may be tax ramifications of any settlement offer so it is important to consult with a tax advisor prior to signing any marital settlement agreement.  For more information call to speak to one of the attorneys at ROBIN  ROSHKIND, P.A. at 561-835-9091 or click on the Firm’s web site at http://www.familylawwpb.com.

Marital home options in divorce.

By Robin Roshkind, Esquire, West Palm Beach, Florida

There are several things you can do with your spouse and the marital home if you are contemplating divorce.  Given this economy, leave it to the lawyers to offer you options.

1.  Find a buyer at any price and let the lawyers assist you with lenders to accept a short sale.

2.  Get your divorce and remain real estate partners with your spouse until the market turns around. One of you stays in the home, continues to pay the mortgage, and maintains the property,  (you have to live somewhere anyway).  Settle it all out at the time of sale years later.

3.  Allow the children and one parent to remain in the home until the youngest child reaches the age of majority.  Do a split (50/50, 60/40, 70/30) on handling the costs by agreement.

4.  Sell the house at today’s fair market value.  If you have equity, you will still come away with cash in hand.  If not, then a short sale is the way to go.

5.  Dump the house and let the mortgage lender worry about it.  The bad thing about this alternative is you ruin your credit and that of your spouse. 

For more information about the marital home and divorce, click on the Robin Roshkind, P.A. website at www.familylawwpb.com or set an appointment for a consultation with one of the Firm’s attorneys by calling 561-835-9091.