Tag Archive for: divorce

Can I Get a Divorce if I am Pregnant?

There is no law against getting divorced while you are pregnant. If you are in an abusive relationship and fear your child will be a victim of violence, it may be a reason you want a divorce. If your husband is not the father, it may be why he wants to end the marriage. Additionally, if you are in a relationship that isn’t working and become pregnant, it might be in the best interest of the child to divorce.  

Do Not Put the Cart Before the Horse 

Child custody and support are divorce issues when couples divorce, but only after a child is born. Your marriage could end before giving birth, depending on how quickly you want to divorce and how long you have been pregnant. If that is the case, child support and custody would be formalized after the birth. 

You are free to discuss these issues during the pregnancy and come to an informal agreement. If you miscarry, child support and custody become non-issues. You may or may not know your child will be born with severe medical difficulties or disabilities. If so, you can plan ahead. If not, it can upset planned arrangements. 

Instead of the child going to daycare after a period of time, the child may need full-time attention, and a parent providing that care may be unable to work (or only be able to work part-time). That may result in different child custody and support than what you expected. 

Alimony or spousal support becomes an issue if the full-time caregiver plans to work but cannot. It may result in a spousal support claim, or the amount of support should increase if it is already an issue. 

How is Paternity Established? 

Under the law, the husband is presumed to be the child’s father. If the child’s father’s identity is in doubt, it would be wise for the husband not to acknowledge paternity and ask the court for a paternity test before agreeing to pay child support.  

If the mother is not honest, the husband may spend a substantial part of his income on a child that is not his. There can also be a steep emotional cost for an ex-husband to care for a child he is told is his but later learns that is not true.  

Over time, if the ex-husband continues to behave like a father to a child not his own, and learns he may not be the father, a court may not allow him to challenge paternity and force him to continue support payments. Though this would be unfair to the ex-husband, courts have made this ruling because they see it as in the child’s best interests. 

Experienced Divorce Lawyers 

Your divorce may be more complex than you think. Negotiations resolve nearly all divorce cases. You cannot effectively do this without knowing all the legal and factual issues. There is also an excellent chance you have little or no negotiating experience. Retaining legal counsel could prevent life-altering problems after your divorce. 

Karen Ann Ulmer, P.C.’s experienced family law lawyers have an in-depth understanding of the Pennsylvania and New Jersey statutes and court procedures. We can help make the process go as smoothly as possible. Call us at (866) 349-4461 or book a consultation online now. 

by

I Have Been Served With Divorce Papers in Bucks County. What Should I Do Now?

Divorce papers should not be a surprise, though, for some, the fact they have divorce papers in their hands comes as a shock. Whether you expected them or not, there is no need to panic. Collect yourself and call our office so we can talk about your situation. 

If you are in Pennsylvania, you should have the: 

  1. Cover sheet: This tells you what the paperwork concerns, who filed it, and the name and contact information of your spouse’s attorney if they have one.
  2. Notice to defend: It provides information on how to defend yourself and retain the services of an attorney. 
  3. Complaint: This has multiple pages and requests a divorce. It should cover factual details of your marriage, you, your spouse, and your children. It should also have requests covering child custody and support, property division, and alimony. 
  4. Verification page: Your spouse signs this document to state that what is in the complaint is true. 

You may have received the divorce papers in the mail or been given them by a sheriff. 

What Should I Do? 

You can be angry or emotional but do not rip these papers up or throw them away. Do not get angry with the sheriff. They know nothing about you or your spouse, and they are just doing their job. You also should not panic because there is no need for an immediate response, though you should not ignore what is happening either.  

  1. Get information and advice 

Though you have your spouse’s lawyer’s name and phone number, it is not a good idea to call them. Their job is to help their client, not you. Call our office. We will answer your questions about the process, describe your obligations, and tell you about mistakes you should avoid. We can schedule a free consultation if you want to discuss retaining our services. 

We should review the papers to see if you need to respond and, if so, how and when. You should do so if you want to raise new claims (equitable distribution, spousal support, or alimony), which are a part of most divorce cases. 

  1. Take action and get organized 

After talking to us, you may freeze joint bank accounts and secure joint assets. If your spouse kept their desire to divorce a secret, they might have withdrawn money and assets from joint accounts just before you were served. If they cannot be convinced to return your fair share, a judge may order them to return the money or provide spousal support while the divorce proceeds (alimony pendente lite). 

If you are both parents of children 18 or younger (or older under some circumstances), the children must be supported. If the other spouse has financially cut off you and your kids, we should discuss seeking child support. 

If your spouse can access your current email account, you should get a new email address with a new user ID and password to ensure your communications are kept private. You should also get a post office box or a private mailbox at a local provider because you may receive paper documents during your divorce, not just emails. 

If you have not done so already, it is time to collect and organize documents covering your financial situation. Part of the divorce will be equitably dividing marital assets and debts. This includes documents covering taxes, income, accounts (bank, investment, and retirement), insurance, property (real and personal such as vehicles and artwork), information on a business you and or your spouse own, credit cards, debts, and mortgages. 

If you have a child with special needs, organize documents covering their diagnosis, medical bills, and educational needs. Tuition bills are also crucial if your children attend private schools or college. 

3. Get the Help You Need From an Attorney You Can Trust 

If you are served divorce papers, call our office at (215) 608-1867, so we can schedule a consultation to discuss your situation and how we can help. We can speak over the phone, hold a teleconference, or meet in our Doylestown or Langhorne offices.  

by

How Can I Legally Change My Name?

If you are going through a divorce, you can legally change your name through the divorce process. There is a separate procedure for name changes that are not divorce-related. As long as you meet the requirements and the paperwork is in order, it should not be a problem.

As Part of a Divorce

You can regain your maiden name during a divorce. Under Pennsylvania statute 54 P.S. § 704,

“Any person who is a party in a divorce action may, at any time prior to or subsequent to the entry of the divorce decree, resume any prior surname used by him or her by filing a written notice to such effect in the office of the prothonotary of the county in which the divorce action was filed or the decree of divorce was entered, showing the caption and docket number of the proceeding in divorce.”

In New Jersey, you could retake your maiden name as part of the divorce or afterward.

  • You should include your request in the initial complaint.
  • If you do not do so, you can later change (or amend) the complaint to do that or seek the change by verbally asking the judge before they finalize your divorce.
  • If you continued to use your spouse’s last name after the divorce was final but changed your mind later, you could file a post-judgment motion with the court. There is a filing fee, but this is simpler than the process for a civil name change.

Outside a Divorce

If you are not getting a divorce, there are some limits to changing your name or that of a minor child:

  • It must be for a legitimate purpose.
  • You cannot have certain criminal convictions, such as voluntary manslaughter, murder, rape, statutory sexual assault, involuntary deviate sexual intercourse, aggravated indecent assault, sexual assault, or robbery.

The petition for a name change would be filed with the civil court in your county. There is a filing fee, and you will need copies of your fingerprints which you can get at the local police department. There should be a hearing for the petition within one to three months after filing.

Before your hearing:

  • A notice will be published in the local newspaper of general circulation and county law reporter.
  • There will be checks by the Prothonotary’s office for any pending civil matters, the Clerk of Courts will see if you are facing criminal charges, and the Recorder of Deeds will look for property issues you are facing.

If you are seeking a name change for a minor child:

  • The same publication requirements apply.
  • You must prove you served the petition on the other parent.

If the other parent disagrees with you, the court will decide the issue after a hearing with both parents. To succeed at the hearing, you must convince the judge the name change is in your child’s best interests.

What’s Next?

Once you have a signed/certified order granting the name change, head to the agencies and companies you deal with:

  • Social Security office
  • Department of Motor Vehicles
  • Banks
  • State and federal taxing authorities
  • Your insurance agent
  • Utilities
  • Stockbroker
  • Internet/phone service provider
  • Employer

This is part of re-starting your life with a new name.

EXPERIENCED CHANGE OF NAME LAWYERS

Work with an experienced family law lawyer from Karen Ann Ulmer, P.C., with an in-depth understanding of the Pennsylvania and New Jersey statutes and court procedures. We can help make the process go as smoothly as possible. Call us at (215)752-6200 or book a consultation online now.

by

Should You Change Your Name After Your Divorce?

If you changed your last name to your husband’s when you married, you might be considering changing it back to your maiden name after your divorce. Depending on your situation, there are pros and cons to a name change. 

Fresh Start 

Dropping your ex-spouse’s name creates a firm break from your past married life. Taking your spouse’s name symbolized you were one unit. Changing your last name shows you are no longer emotionally, legally, or financially connected. You are independent, and your marriage is over. If you are having a difficult relationship with your ex-spouse, it may be additional motivation to change your name. 

Does Your Maiden Name Reflect Who You Are? 

You should be proud of this new, post-divorce you. You are not the same person you were during your marriage. Life after your divorce is a new chapter. Changing your name, where you live, and even new clothes may be part of your emotional makeover. 

Will a Name Change Cause Confusion in Your Professional Life? 

If you work professionally, own a business, or are successfully moving up in your industry, you have a personal brand you need to maintain. You want people to think specific positive thoughts when your name comes up in conversation, or you meet them. Changing your name can confuse those you work with or connect with.  

However, this change should be manageable. Businesses often rebrand themselves, their products, and their services. Do you drive a Nissan? Back in the day, it was a Datsun. Blue Ribbon Sports is now Nike. Divorces are common, and changing your name is not something negative. Consider making it positive by creating a reason to reach out to these people, give them an update, and engage in a conversation.  

Will It Impact Your Children? 

You could change your last name, but your children could have their father’s last name. If your kids are young, maintaining your ex-spouse’s last name may be more practical and easier. You can always change it later. 

Which Name Do You Like More? 

Do you have a preference? You might not like your maiden or married name for many reasons. It may be very long, difficult to spell, or not very flattering. You might not have enjoyed being Ms. or Mrs. Butts, Crump, or Gopnick. You may be tired of spelling out “Krzyzewskewicz” to people. You have options. 

Changing Your Name and Bill Collection 

Some people leave their marriages deep in debt, and if they have been out of the workforce for a long time, their job and income prospects might not be good. Bill collectors use many methods to find debtors. As part of the name change process, you will need to publish a notice of your name change. Thanks to that notice, the internet, the amount of publicly available information about you, and special databases used to find people, going back to your surname will not help. 

If you have questions about the name-changing process, call us at (215) 607-2893 or fill out our online contact form. 

by

Divorce Settlement Mistakes You Can Make Without an Attorney

Can you write your own divorce? Do you really need a divorce attorney? People hire attorneys because they need help with something they do not feel comfortable doing themselves. Most of those getting divorced should retain legal counsel to protect their rights. We provide advice and counsel to educate our clients and propose courses of action. 

Our attorneys want to prevent mistakes because that is one way we provide value to our clients. It is up to our clients, not us, to decide what direction to take, but if they follow our advice, they reduce the risk of making errors we want them to avoid. 

Most divorce cases settle. For nearly all parties getting divorced, litigation consumes too much time, energy, emotion, and money. The resolution to your divorce will probably be an agreement that will impact you for the rest of your life. It must be in your best interests as much as possible. 

What Divorce Settlement Mistakes Can I Make? 

  1. Do Not Just Settle 

Divorce can create a lot of stress and you may want to put it behind you. We can do that depending on the circumstances and how well the parties cooperate. But the assets you have, any children involved, and the cooperation of your spouse, will all impact how long it will take to reach an agreement. Your spouse may use your urgency against you and propose unreasonable terms hoping you will quickly agree. 

  1. Tax Implications Are Not Considered 

Not all assets are alike, and there are tax implications to the equitable distribution of property. Some assets may be taxed higher than others, impacting their value. If you do not know about tax issues, you may agree to a property settlement that, after taxes, is worth significantly less than what your spouse will receive.  

  1. You Want to Keep the Marital Home. Can You Afford It? 

If you own a house or condo, keeping it may be a goal for many reasons. You may see it as worth giving up your rights to other property to attain it. Is this goal reasonable? Create a post-divorce budget.  

  • What will your expenses and income be?  
  • Will you be able to refinance the mortgage? If so, what will your payments be? If not, what is your Plan B? 
  • Will you be able to pay the utilities, mortgage, insurance, and taxes?  
  • Will you be able to set aside money to pay for future repairs and maintenance? 

Everyone needs a home, but will this one make you so property-rich and cash-poor that you will be forced to sell it after your divorce? 

  1. Your Spouse May Hide Assets 

A complete inventory of the parties’ marital assets is the foundation of fair, equitable property distribution. Do not agree to a settlement if you believe your spouse is dishonest and may be hiding assets. If there are ways he or she may be siphoning off or mislabeling assets, we can get to the bottom of it so we can have clear, reliable information about the property the two of you own. 

Contact Karen Ann Ulmer, P.C., today if you are thinking about getting divorced and have questions or if you have decided it is right for you and need legal representation.  

by

How to Get Along With Your Ex

,

One benefit of divorcing your child’s parent is that there is no longer the pressure to maintain your marriage. But you should strive to get along well enough to co-parent your children. That is a much less demanding and intense relationship than being married. You do not have to keep up appearances, your kids should understand the situation, and it is much more of a working relationship. 

Sometimes Time Does Heals Wounds 

Here are three reasons from Psychology Today why your relationship could improve: 

  • If the person’s role in your life declines, long-standing frustrations may disappear. You will still be incompatible, but since you are less dependent on each other, those issues are less important.  
  • Over time and with life experiences, everyone changes, including you and your ex. The two of you may become better people who have an easier time getting along. 
  • Instead of seeing yourselves as trying to escape each other, you both see the common goal of raising happy, healthy, well-adjusted kids. You appreciate there are more benefits of cooperation than antagonizing each other.

Your relationship was bad enough not to be married. That does not mean that, as ex-spouses, you cannot work together to be good parents. Your bad marriage may have stressed the two of you out and distracted you so much that your parenting ability suffered. The two of you may be better parents post-divorce. 

Steps to Take to Improve the Relationship 

A divorce is a significant change in your life. The two of you will not instantly lock into doing, saying, and thinking things that will smooth out your relationship. Another Psychology Today article suggests some options:    

  • Be patient. Give each other some time and space to adjust. 
  • Keep your priorities straight: parenting happy and healthy kids, not settling scores or trying to run your ex’s life. 
  • Have a mature and respectful relationship with your ex. If you are still too upset to communicate, use a third party as a go-between.  
  • Lower the heat by refraining from accusations and keeping your voice under control. The past is over. Focus on the future. Look at this as a mature, business-like relationship whose purpose is to achieve goals. 
  • Do not use your kids as pawns in a mind game you want to play with your ex. It will hurt your relationships with your kids and ex. 
  • If you start a new relationship, do not rub it in your ex’s nose. Keep your new partner out of whatever disputes may arise with your ex. 
  • Do not put down your ex in front of others, especially your kids. Be an adult. Move on 

Do not allow uncomfortable feelings about your marriage to rule your life and make you and your ex less effective parents. Learn from the past and take steps now so everyone can have a better future. 

Get Help if the Situation Gets Out of Control 

Most divorced parents work it out and responsibly parent their kids. If your ex is not adjusting to the post-marriage reality and making you and your kids miserable, we can help. If you have any questions or want legal representation, please contact us here at Karen Ann Ulmer, P.C.  

by

Divorce and Your Parents’ Money: Does Any Belong to Your Spouse?

With divorce comes the equitable (or fair) division of marital property (property acquired during the marriage). Generally, assets owned by a spouse’s parent are not considered marital property, so your spouse should not have a valid claim to them. But this is divorce law, so there are possible exceptions that may make your case complicated. 

How Would Equitable Division Impact Past Trust Payments or Gifts? 

Clarifying which property is marital and what is not is spelled out in Pennsylvania statute (35 Pa.C.S.A. §3501(a)). Under the law, generally, property that is a gift from your parents, directly or through a trust fund, would not be marital property as long as you treat it as separate, personal property:  

  • Non-marital property: You put it in a bank account with your name, your spouse cannot access it, and you spend it for personal reasons. You buy yourself a car with it or spend it on furnishing your home office. 
  • Marital property: It is in a joint account, used to purchase marital assets or to pay ordinary marital expenses. 

Also not marital property is money you manage for your parents. If you are spending it to benefit them and your spouse has no access and it has not been used for marital purposes, that property belongs to your parents.  

How Would Alimony Impact Future Trust Payments or Gifts? 

The property you receive after your marriage ends is not marital. A spouse cannot have a claim on a future inheritance, trust fund payments, or gifts from parents you have not received yet as marital property. However, if your spouse is awarded alimony, you may need this future income to pay it. 

If you used commingled past trust fund payments and gifts and paid joint living expenses and property with it, they helped you establish your standard of living. If your spouse seeks spousal support or alimony and you agree to it, or a judge orders it if there is no agreement, one of seventeen factors is the standard of living the two of you established during your marriage.  

The fact that you improved your standard of living during your marriage by commingling trust payments and marital income may end up aiding your spouse’s argument that alimony should be paid. You may spend future trust fund payments on alimony, so indirectly, your spouse may end up with part of those future payments. 

Another alimony factor is the “expectancies and inheritances of the parties.” Alimony amounts can change in the future if there are “changed circumstances of either party of a substantial and continuing nature whereupon the order may be modified, suspended, terminated or reinstituted or a new order made.”  

A future inheritance is not marital property, but if you receive an inheritance so large that your circumstances have changed in a “substantial and continuing nature,” your ex-spouse could ask a court to obtain alimony or increase payments after that happens. Like trust payments, though a future inheritance is not marital property to be divided, your spouse may get some of it through increased alimony payments. 

On the flip side, if you receive alimony and after your divorce get the benefit of sizable trust fund payments, gifts, or an inheritance from a parent, your ex-spouse may ask a court that their alimony payments be reduced or ended because you no longer need financial support given this extra income you have received. 

Equitable Distribution and Alimony Issues Can Get Complicated. Let Us Unravel Them for You.

Contact Karen Ann Ulmer, PC, today if you are considering getting divorced and have questions or have decided it is right for you and need legal representation. Call us at (215) 752-6200 or fill out our online contact form. 

by

Preparing to Lose Benefits After a Divorce

If you rely on your spouse for health insurance and retirement benefits, losing them will be one of the costs of a divorce. There are also tax benefits to marriage that will end. But your losses may be lessened with planning and the right advice and preparation from your divorce attorney.

Health Insurance 

Most people get health insurance as a workplace benefit. The US Census estimates that in 2019, 55.4% of those with medical coverage got it through the workplace. If you currently work and are covered by your spouse, find out if your employer offers health insurance benefits, and if so, its benefits and costs. If you are looking for a new job after your marriage ends, these benefits may be a key to making a position attractive. 

If your spouse can get health insurance through their job, and you have children, it probably makes the most financial sense to have them covered by these benefits.  

The federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) changed the Employee Retirement Income Security Act (ERISA), the Public Health Service Act, and the Internal Revenue Code to require group health plans to provide a temporary continuation in situations where it may otherwise end.  

If you were covered by your spouse’s medical benefits when you divorced, it could continue. But you will pay your entire premium (there will be no employer contribution), and it will not be available forever (it lasts up to 36 months). Because of its expense, COBRA coverage is often a “bridge” to your subsequent, more affordable health coverage. 

If coverage through your job is not an option, you should consider plans available through the Affordable Care Act (ACA or Obamacare) marketplace. If your income is low enough, you may qualify for a subsidy. Your cost will not be affected by pre-existing conditions, but the coverage’s quality,  your age, whether you are covering your children, and your location will impact the premium. You have 60 days from your divorce to enroll. If you miss that deadline, you must wait until the next open enrollment. 

Tax Breaks 

The impact on your taxes will vary. If your income is higher or equivalent to what your spouse earns, you will probably pay a higher tax rate after your divorce because married couples filing jointly usually pay fewer taxes. There is also a larger limit on charitable contributions. If you make substantially less than your spouse post-divorce, you may be in a lower tax bracket and pay less. 

If your divorce was finalized after December 31, 2018, and you pay alimony, you cannot deduct it from your income. If you collect alimony, it is not taxable income. Likewise, child support payments are not deductible and are not considered income for the parent obtaining the support. 

Retirement Benefits 

Retirement benefits like 401(k) accounts and pensions are generally considered marital property, so they could be equitably divided during the divorce. During the divorce process, all marital property is inventoried. A fair amount for each is negotiated by the parties or ordered by a judge after a trial. It is common that instead of retirement benefits being split up, they will stay with the spouse who earned them, while that party gives up an equivalent amount of other assets to make up for it. 

There are many moving parts to a divorce, and the number and size of those parts vary with each couple. Contact Karen Ann Ulmer, P.C., today because we are here to help you with a divorce. If you are considering getting divorced and have questions, or you have decided it is right for you and you need legal representation, call us today. 

by

How Much Should It Cost My Spouse to Buy Out the House?

,

Equity in a home may be a married couple’s biggest asset. Before deciding what to do with the marital home in a divorce, you must find out how much that equity is and what the home would probably sell for if it was put on the market. Get professional help for this task. There is too much at stake to try to come up with some figures after a couple of hours of internet research. 

Why Does This Matter? 

The assets and debts of married couples are equitably divided in Pennsylvania divorce proceedings. If the couple has a house and a mortgage, who gets what is an essential part of the process. That starts with determining the home’s value and how much equity each party has.  

The home is usually a significant component of the overall agreement of how assets and debts are divided. If the parties cannot agree, assets and debts can be divided by a judge after a trial. This is the most time and resource-consuming way to resolve the issue, which is why it is the route of last resort if the parties cannot agree. 

This does not matter if the house is not marital property subject to division. It may have been owned by one spouse before marriage, though the other spouse may make a claim to its increase in value since the marriage began.  

The parties may also have a premarital or prenuptial agreement spelling out who will get the home in case there is a divorce or a formula to determine an amount. A prenup may also spell out the amount that one needs to pay to buy out the other’s interest. 

Another option is selling the house. After the mortgage, liens, taxes, and costs are paid, the profit left over is part of the cash the two of you will divide. 

What is Home Equity? 

Appraised Value – (Balance of Mortgages + Liens) = Home Equity 

The higher the appraised value and the lower the balances for your mortgage and liens (if you have any), the more home equity you have. The two of you should agree on a professional appraiser to determine the appraised value. Each of you could hire your own, and the result may or may not differ, but no matter the outcome, the cost is double that of just hiring one. 

Avoid a do-it-yourself appraisal. Unless you are a trained professional, you do not know what you are doing. Properties you think are comparable may not be, and you may miss properties that genuinely are similar. This approach could cost you far more than the money you save by not hiring an appraiser. If you are buying out your spouse, you may come up with an inaccurate value that is too high, or if you are the one receiving money or other assets, your figure may be too low. 

The spouse buying out the other should hire a home inspector. That extra pair of educated eyes could find hidden problems impacting the value. It is better to learn about them sooner than later. 

How Will I Pay to Purchase My Spouse’s Interest in the House? 

There are different options. If none are feasible, you will not be able to buy your spouse out. As much as you may want to keep the house, if you can not afford it, you must move on. 

The simplest way is to pay cash, but not many people have that much in reserve. You could refinance the mortgage, but interest rates are up, and qualifying may be difficult. You would pay off the existing mortgage balance through the refinance and use the equity to pay the other spouse. If your application is accepted, your monthly payment may be more than what you pay now. 

Another option might be that the other party will accept payments over time, and the property title changes after the last one is made. This will require a written contract, and both sides will want to protect their interests if, in the future, the paying party cannot afford full payments or complete the deal within the specified time frame. 

Because all marital assets are subject to equitable division, one way to buy out your spouse is to transfer or give up your claims to other assets. Read our blog article I Want to Buy My Spouse Out of the House for more information.

If you have any questions about what will happen with your home after a divorce or need legal representation, please contact us here at Karen Ann Ulmer, P.C. We can discuss how this may play out and how we can help you through the process. 

by

I Want to Buy My Spouse Out of the House

,

If you and your spouse are divorcing and you own a home, you have some options. If you want the property, you will need to pay your spouse for their equity share. One way to accomplish this is to trade assets or property as part of the divorce process.  

Splitting up your debts, assets, and possessions fairly and equitably will be part of your divorce. It can be very contentious, but ideally, the parties should consider this a business transaction. The two of you will start a new personal life, and to accomplish that, you will need to split your financial lives in a way you can both accept. 

You can reach a resolution or litigate the issue and have the judge decide. If that is where the case ends up, you will give up controlling the outcome, which will cost you more time, energy, and money.  

How Can I Make This Work? 

If you prefer to live in your marital home, you will need to pay your spouse for their ownership interest. 

Often during divorces, the spouses agree and disagree on a mix of assets. You could offer your spouse something that is clearly yours and give up your rights to assets that are contested. Consider the following scenarios: 

  • The two of you have $100,000 in home equity. To buy out your spouse’s $50,000 share, you could give up your $50,000 interest in a joint investment account or a 401k. 
  • You are claiming spousal support. You may give it up or reduce it in exchange for your spouse’s home equity.

Ideally, your spouse will be open to swapping assets to cover their home equity, and it will be enough to cover the whole amount. If that is not the case, you could pursue a cash-out finance but keep in mind the following:

  • You would refinance your mortgage, but in your name only. 
  • This is only an option if you qualify for the loan and can afford the new monthly payments, which will probably be higher than what the two of you now pay. You are also subject to the going loan rates, which are going up and down. 
  • If you are the sole owner, you must also be able to afford all the other costs that come with home ownership, such as taxes, utilities, maintenance, repairs, and insurance. 
  • The refinance gives you access to the home equity, which you can use to pay your spouse.

Given the number of divorces, this is nothing new for mortgage companies. However, if this is your first divorce, it is new to you. Refinancing a mortgage during a divorce will probably involve substantial potential financial liability, so this should not be decided upon quickly without advice from an attorney. 

What Could Be My Plan B? 

As much as you want the house, depending on your post-divorce income and assets, buying out your spouse could make you house-rich and money-poor. You may end up with not enough money to go anywhere or do anything, and being one major house repair away from living on credit cards. Your spouse could buy you out, or the two of you could sell the house and split the profit. The money you receive could be your down payment on a more affordable house.  

Who Will Own Your House is Just One of Many Issues 

If you are considering getting divorced and concerned about where you’ll live afterward, contact us here at Karen Ann Ulmer, P.C., so we can answer your questions and discuss how we can help you.   

by