Hi, my name is Kirsten Krueger and two years ago, I was in a car accident. I was stopped at a stop sign when the driver behind me slammed into my car. Due to my injuries, I had to spend a few days in the hospital and I was unable to work for two months. My medical care was expensive and without being able to work, I couldn't pay my bills. The car accident was stressful enough and then I had to worry about how I would pay my bills. After speaking with a car accident lawyer, it wasn't long before I was compensated for my medical bills and lost wages from work. I'm writing this blog to help others who have been a car accident and haven't received any compensation. As you read my posts, you'll learn how an attorney can help you if you're in a vehicle accident.
One of the big issues couples are often faced with during a divorce is who will get the home. If you will most likely receive custody of your children and can afford to stay living in your home, you may want to fight to keep your house. If your spouse can agree to this, there are several issues you will need to negotiate and complete to make sure this agreement is handled properly.
Buyout the other spouse
When one spouse gets the house, it is not uncommon for this spouse to have to buy the other out. This is the fair way to handle splitting a house that is jointly owned by two spouses; however, coming up with an agreement on how much the house is worth can be tricky. Many lawyers will recommend getting the house appraised. This is the best way to find the true value of the house right now, and you can use the appraisal amount to base the buyout amount.
To do this, you will need to determine the difference between the appraisal amount and the current balance of the loan. For example, if the house appraises for $210,000 and you owe $185,000 on it, the difference is $25,000. This means the home has $25,000 equity in it. For you to buy out your spouse, you will probably have to pay him or her $12,500, which is your spouse's portion of the home's equity.
Refinance to change legalities of the deal
The second important thing to know is that there are legal steps needed to handle this agreement properly. If both of your names are currently on the deed to the house and the loan, you will need to change this. The best way to do this is to refinance the home. When you refinance, you can place the home in your name only, and this will remove your spouse's liability for the loan. It will also take your spouse's rights to the home away from him or her.
One nice part about refinancing is it would give you the ability to refinance for an amount that is higher than what you currently owe. If you owe $185,000, like in the example above, you might be able to refinance the home for $197,500. If you could do this, you could have the extra $12,500 you need to pay your spouse for his or her portion of the home.
This is a big issue with divorces, which is why you should hire a good divorce lawyer for help. If you have not yet hired a lawyer, call one today to schedule an appointment.
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