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Resolving Ownership of a Marital Home Through a Divorce Lien

Posted on in Divorce

Rolling Meadows divorce lien attorneyWhen a couple decides to end their marriage and get divorced, there are a wide variety of legal issues that must be resolved. Determining how to divide marital property is often one of the most complicated aspects of a divorce, especially when spouses own a home together

In some cases, a couple may decide to sell their home and divide the proceeds, but often, one spouse wishes to retain ownership of the home, especially when they want their children to continue living in a familiar environment and avoid having to transfer to a new school district. If a spouse does not have the financial resources to purchase their former partner’s share of the home, they may want to consider a divorce lien.

Understanding Divorce Liens

When couples utilize a divorce lien, the spouse who will not be living in the house signs a deed conveying the title to the property to the other spouse. The spouse who remains in the house will sign a payable note and a deed of trust to their former partner. This note is known as a divorce lien. The note will specify how the spouse remaining in the home will repay the other spouse. Payment could be made in a lump sum at a future date or through an ongoing installment plan.

A divorce lien is a valuable asset, and the spouse who is no longer living in the home may sell it to another party in the future. In order to ensure that a lien is salable, it should include an exact date when payment of the lien is due, and it should not be subject to any other agreements (such as the payment of child support). Liens should also specify how interest will be calculated on the balance of the note.

While a divorce lien can be a helpful instrument, it will only be effective if the couple has significant equity in their home. The spouse who will remain in the home must be able to afford the mortgage payments and the costs of home ownership, including maintenance and utilities. Spouses should also be aware their property tax liabilities, and they should understand how the recent federal tax reform bill affects the amount of property taxes they are allowed to deduct from their taxable income.

Contact a Schaumburg Divorce Lawyer

The division of marital property can be one of the most contentious issues that arise during divorce, and ownership of real estate can complicate the process considerably. If you are considering a divorce lien, the skilled attorneys of Anderson and Associates, P.C. can help you understand your options and ensure that you meet your legal requirements. Contact our Arlington Heights divorce attorneys today at 847-995-9999 to schedule a free consultation.

Sources:

http://www.wallstreetbrokers.com/library/homelien.html

http://www.divorcemag.com/articles/how-to-sell-your-house-fast-during-divorce

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