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Cars, houses, credit cards, divorce - All the fun things in life.

Discussion in 'Archived Threads 2001-2004' started by Jared_B, Oct 25, 2002.

  1. Jared_B

    Jared_B Supporting Actor

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    A eh, "married couple I know" are splitting up. They have a house, one new car (leased), and no kids (except the HT).
    How does one decide who gets what?
    Assets:
    -House - very little equity. If sold outright, it's doubtful that any money would be made after fees.
    -HT - $8k new.
    -Piano - $4k new.
    -Misc other junk.
    Debts:
    -House - If one person decides to keep the house, how does that person get mortgage transferred? Is it automatic when divorce is final, or does that person have to get re-approved for the mortgage on their own income?
    -Credit card - 1 credit card has a balance.
    -Car - Assuming whomever doesn't get the house will get the car. It would be impossible for one to afford both.
    Does the judge decide how to split the assets/debts? If the couple can work something out that they both agree is fair, is that the end of it?
    Also, one person has 401k, company stock purchase plan, etc, while the other does not. Are these assets untouchable, or do they need to be split too?
    Now on to me. We traded in our X5 and got a 330i. Pics below. Very fun car, mileage is much better than the X5, and payments are nicer too. Unfortunately, I... I mean, someone may not be able to keep the car...wait, this couple I know...ahhhh crap.
    Ext 1
    Ext 2
    Int 1
     
  2. CharlesD

    CharlesD Screenwriter

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    I'm no expert on these things, but I would imagine if this couple can work things out between themselves there would be no need for a judfge to decide who gets what.

    Now on to more important things does your, er their, BMW really have a DVD player in it?
     
  3. Jared_B

    Jared_B Supporting Actor

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    Ahh, at least you have your priorities straight! Yes, it does. Helpful during those nights when she has night class, and I have to wait for her to get out.
    Frodo
    I also had my Xbox running on it for a while:
    Sega GT2002
     
  4. Danny R

    Danny R Supporting Actor

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    If the couple can work out all the property divisions themselves, they will save a heap of money. Uncontested divorces are mostly a matter of paperwork. However every state has different rules. Some require a "separation" time before actual divorce is granted. Others require "grounds", such as adultery. Best they read up on the law for your particular state. Uncontested divorces need not involve lawyers and have the lowest financial burden.

    However should any disagreements occur, you start a contested divorce, and the lawyer and court fees start piling up.

    Also, one person has 401k, company stock purchase plan, etc, while the other does not. Are these assets untouchable, or do they need to be split too?

    All property owned by either couple is fair game, that includes pensions and retirement funds. The reasoning behind this is that in many cases one spouse stays at home allowing the other spouse to work with the expectation that the retirement will support both.

    While other laws might keep the fund from being split right then and there, that doesn't mean when it eventually does start paying it can't be divided in the future. All this needs to be covered.
     
  5. Mark Zimmer

    Mark Zimmer Producer

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    One tricky aspect often overlooked (even by lawyers) in this process is that even when you split the debts and the court approves it, that IS NOT BINDING on the creditor. The creditor can still collect from the spouse who thought he/she was out from under it.
    A common and sleazy tactic is to say, OK, I'll take all the debt but I get 75% of the assets. Spouse says, wow, that seems fair and signs off, as does the judge. Then the one with 75% of the assets files bankrupty, gets a discharge and the spouse with 25% of the assets is still responsible to the lender for 100% of the debts. Ugly situation, that. [​IMG]
    The foregoing is not intended as legal advice. If you have a divorce or property division situation, contact a lawyer in your jurisdiction.
     
  6. Jeff Ulmer

    Jeff Ulmer Producer

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    Re: the mortgage.

    I'm not sure how this works in a divorce, but I would assume that whoever keeps the house will have to requalify for a new mortgage, as you are basically buying out the other person's interest in the property. You should have the house appraised for current market value, then agree on a fair price (easier said than done, especially if the house is worth a lot more/less than when you bought it). If there isn't a lot of equity the buyout shouldn't be too hard to cover (add to the mortgage), however getting approved for the mortgage may be difficult, especially if there have been other changes in your credit since you bought the house (ie more debt accumulated).

    If you can settle amiably you will be far further ahead. Legal fees can add up quickly.
     
  7. Steve Schaffer

    Steve Schaffer Producer

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    What Mark wrote is very true.

    My 1st ex decided to quit her 35K per year job shortly before informing me we were getting a divorce (this was in '88, when 35k was a lot more than it is now).


    I could not afford her debts on top of my own, and she couldn't pay hers at all, so we filed BK before the divorce was final, and after her 10 month old car was repo'd.


    We did this by mutual decision so there was no animosity involved, nor did we have any difficulty deciding on our own how to split up the property (no kids).


    Needless to say, I got custody of the Sony XBR.

    We were very lucky in that our 2 year old house sold for just enough and just in time to net each of us $400 with no missed mortgage payments.
     

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