Need help with decision ASAP

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Need help with decision ASAP

Postby Thame » Tue Nov 08, 2011 9:42 am

I'm finalizing property arrangement in my divorce. The ex and I bought a home 2 years ago but since it is now underwater about 50k. She wants to keep the home and frankily I don't care if she does. The bank will remove my name from the mortgage, I just have to sign the paperwork.
We have agreed to each keep our own vehicles. She has a retirement account I don't, this is because all of my money was being used to keep bills paid while she blew hers on everything her kids wanted.
Since the separation she has taken loans and credit cards and since I seen her finances in the disclosure I don't know how she will stay afloat for much longer.
She wants me to sign off the house and walk away with nothing. And here lies my dilemma. I'm looking at this as I will be starting over with nothing while she keeps everything after busting my butt for 11 years to buy a home etc.
Question is do I walk away or fight her to try to get some kind of monetary settlement from her? Only thing she could use would be her retirement but I would maybe get 5-6 k and that's before attorney fees and considering she is so far in debt now would the courts give me anything even if I did fight? Advice please? This is an Arizona divorce so community property applies.
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Re: Need help with decision ASAP

Postby madalex » Tue Nov 08, 2011 9:50 am

Given the debt situation you describe (50K underwater on the house and presumably thousands more with the loans and credit cards you describe), walking away with nothing (e.g., not being responsible for any portion of that debt) sounds like a pretty good deal to me. To jeopardize that over a few thousand from her retirement account doesn't seem like it would be worth the effort or cost.
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Re: Need help with decision ASAP

Postby hoosier_dad » Tue Nov 08, 2011 9:51 am

The house is 50k underwater so your share of the negative equity is 25k. Based on that she would normally get 25k in offsetting assets such as cash, retirement accounts etc. to make up for taking 25k of your debt. What other funds are there that you expect to get a monetary settlement from? Sounds like she's been running up debt since a separation, and depending on your State and if you have actually filed for divorce that new debt might be marital as well.

Thame wrote:The bank will remove my name from the mortgage, I just have to sign the paperwork.


This occurs via a refinance of the mortgage. With your STBX's finances and increasing debt do you really think her getting refinanced is a sure thing? Sounds like she has no chance of successfully refinancing the marital home.

Gotta ask, are there children involved?
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Re: Need help with decision ASAP

Postby Thame » Tue Nov 08, 2011 10:11 am

The bank is not refinancing they are doing someother legal action that removes my name from the mortgage. I can't remember what it's called at the moment. My attorney has read the paperwork and it's legit. It will remove my name from the mortgage and deed.
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Re: Need help with decision ASAP

Postby Bubba Seal » Tue Nov 08, 2011 10:44 am

Thame you mention her kids in the first post.

Are there kids involved? Are they yours or from a previous marriage by your wife?

As far as walking away from the house, thats actually one of the best deals Ive seen on here, you are giving her the debt, you dont have any equity in anything from what your are saying. Thats a no brainer to me.

The other issue past that is kids and how involved you want to be in the future.

Did I miss something?
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Re: Need help with decision ASAP

Postby Thame » Tue Nov 08, 2011 1:00 pm

They are hers from her first marriage

I appreciate everyone's advice.
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Re: Need help with decision ASAP

Postby Chris A » Tue Nov 08, 2011 1:35 pm

Run like hell do not look back. This is my first post and u motivated me to register. Read some of the stories here they will make u cry. Almost every one here would love to walk away with nothing owed.
“Women can fake orgasms. But men can fake whole relationships.”
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Re: Need help with decision ASAP

Postby anonymous guest » Tue Nov 08, 2011 3:42 pm

I'd take the deal and walk! Heck, I'd run!
If you may get $5 to $6K before lawyer fees, you won't get anything after fees are paid. And, you may get ordered to pay half of the negative equity as well, as mentioned by someone else.
What other assets are there? Anything at all?

Look at it as walking away with a clean slate, with no debt. Don't look at it as walking away with nothing, because the only thing you would walk away with would be debt, and who wants that?
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Re: Need help with decision ASAP

Postby Jehr » Tue Nov 08, 2011 5:44 pm

This needs to be a business decision and not based on emotions at all.

Are there any premarital assets that she's trying to sieze? Those should remain yours, no ifs ands or buts about it. Same with hers.

Talk to your attorney and get a feel for how your state and your judge historically handles debt accrued after the initial filing to find out what liabilities are clearly hers, and which ones are joint.

Do up a spread sheet with two columns in it. Start with major items. Put the value of everything you own and all credit you have out on it.

The house is -50k for her. What are the vehicles worth? Other major property items? Do you have any other joint debt? Who would pay it?

After you divy up the assets and liabilities between the two columns, is your column less than hers? If no, then take the deal.

If it is, by how much? Understand that you could end up spending thousands in attorneys fees chasing equity when the gap between you is less than the legal fees you'd expend.

Don't make a decision based on the principle of "walking away with nothing." Nothing is better than a mountain of debt. Being able to walk away with a clean balance sheet after a divorce is something 99% of the guys on this board would jump at in a heart beat.
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Re: Need help with decision ASAP

Postby gotkids » Tue Nov 08, 2011 5:58 pm

If it realy is only 5-6k max difference - walk.
Lawyer fees will be half that.
Oh, they may try to straddle you with some of the marital debt.
I'd also understand the bank thing VERY WELL before I signed.
I don't know of a way to pull a name off without refinancing.
BE SURE and not just taking the word of one person.
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