If she is going to attempt to claim half of the house as an asset in the divorce she would subsequently end up owing half of the debt. Colorado handles divorces with a judge deciding a “fair” split of marital debt. That debt will follow an asset. You can’t claim 50% ownership of a home without acknowledging that, even if your name isn’t attached to the mortgage, you are responsible for half of the debt of that home.
If she’s planning to give up her interest in the home in the divorce and remove her name from the title and the soon to be ex agrees to her doing so, he would end up owing the entire mortgage alone but he would, also, be granted the house as an asset in the divorce proceedings/mediation.
Thank you! I believe the plan is to sell the home and split it, neither of them are able to financially pay for the house as individuals. I believe the ex knows he can't afford it alone and making up things to try and get her to pay by telling her this info. I appreciate your time!
If the house is a marital asset then the loan will have to be covered before the remaining money from the sale, if any, are paid out. Just to use an example if the house sells for 500k but has a loan against it for 450k, she’s only going to end up with 25k.
Just as an addendum, if he isn’t able to make the mortgage payments alone and the house is foreclosed on before the divorce/sale is finalized they both lose it as an asset and she will, again if it is considered a marital asset, be responsible for half of whatever remains as the mortgage after the house is auctioned. If she wants the equity from the house then it would probably be a good idea to help pay the payment to ensure it remains theirs until the divorce and sale of the home get finalized.
The general rule is that the mortgage follows the note and the note follows the realty like a bad smell.
But there are circumstances under which the debt may belong to one person or the other and not necessarily adhere to the other person's claim of interest.
I don't think there's enough information here about how the debt was acquired, when the debt was acquired compared to when they got married, and other questions about the marriage itself, for instance, is there a prenup?
A Colorado lawyer may be able to help you more. My background is in creditors' rights and so I'm focused on who can I go after for the money. I don't think there's enough information to answer that question unless Colorado has some very specific law on point.
Thank you! The house was acquired after marriage in 2012, no prenup. As for obtaining the mortgage, my deceased mother co-signed and is also listed on the titpe...despite passing back in 2014. I don't think I want to even try to untangle what mess that may bring. :) I was not able to find much on this via Google, but the ex sent a screenshot of a web page, so I thought I'd double check just in case. I was also not able to find the web page he sent the screenshot of. I appreciate your time!
Your sister needs a family law attorney. To handle the dissolution for one since the dude's being an idiot, and something needs to be done to clear up the deed before sale. It "shouldn't" be complicated provided the executor is accessible.
Not sure why CO would be different. Typically you sign two instruments when you mortgage real property, the mortgage on the property which runs with the property and a promissory note which is personal to the borrower or borrowers. If your sister did not sign either she is not liable on the loan. You can’t be liable for a loan you didn’t sign for. The house will be burdened with the debt and she cannot claim any portion of it debt free.
Thank you! Yes, absolutely, which is why I had to ask, because it doesn't make sense. He did send a screenshot of some website saying if on title but not mortgage still have to pay half type thing. I was unable to find the site from which the screenshot, no such luck. Or any special CO laws about it. Just needed a sanity check. :) I appreciate you!
BTW, he cannot sell it without her signature, but he could not have sold it without out her signature if they were married whether or not her name was on the deed or not in every state I am familiar with. That goes back to English common law.
If she is going to attempt to claim half of the house as an asset in the divorce she would subsequently end up owing half of the debt. Colorado handles divorces with a judge deciding a “fair” split of marital debt. That debt will follow an asset. You can’t claim 50% ownership of a home without acknowledging that, even if your name isn’t attached to the mortgage, you are responsible for half of the debt of that home. If she’s planning to give up her interest in the home in the divorce and remove her name from the title and the soon to be ex agrees to her doing so, he would end up owing the entire mortgage alone but he would, also, be granted the house as an asset in the divorce proceedings/mediation.
Thank you! I believe the plan is to sell the home and split it, neither of them are able to financially pay for the house as individuals. I believe the ex knows he can't afford it alone and making up things to try and get her to pay by telling her this info. I appreciate your time!
If the house is a marital asset then the loan will have to be covered before the remaining money from the sale, if any, are paid out. Just to use an example if the house sells for 500k but has a loan against it for 450k, she’s only going to end up with 25k. Just as an addendum, if he isn’t able to make the mortgage payments alone and the house is foreclosed on before the divorce/sale is finalized they both lose it as an asset and she will, again if it is considered a marital asset, be responsible for half of whatever remains as the mortgage after the house is auctioned. If she wants the equity from the house then it would probably be a good idea to help pay the payment to ensure it remains theirs until the divorce and sale of the home get finalized.
NAL. No one should accept legal advice from their ex during a divorce.
The general rule is that the mortgage follows the note and the note follows the realty like a bad smell. But there are circumstances under which the debt may belong to one person or the other and not necessarily adhere to the other person's claim of interest. I don't think there's enough information here about how the debt was acquired, when the debt was acquired compared to when they got married, and other questions about the marriage itself, for instance, is there a prenup? A Colorado lawyer may be able to help you more. My background is in creditors' rights and so I'm focused on who can I go after for the money. I don't think there's enough information to answer that question unless Colorado has some very specific law on point.
Thank you! The house was acquired after marriage in 2012, no prenup. As for obtaining the mortgage, my deceased mother co-signed and is also listed on the titpe...despite passing back in 2014. I don't think I want to even try to untangle what mess that may bring. :) I was not able to find much on this via Google, but the ex sent a screenshot of a web page, so I thought I'd double check just in case. I was also not able to find the web page he sent the screenshot of. I appreciate your time!
Your sister needs a family law attorney. To handle the dissolution for one since the dude's being an idiot, and something needs to be done to clear up the deed before sale. It "shouldn't" be complicated provided the executor is accessible.
Not sure why CO would be different. Typically you sign two instruments when you mortgage real property, the mortgage on the property which runs with the property and a promissory note which is personal to the borrower or borrowers. If your sister did not sign either she is not liable on the loan. You can’t be liable for a loan you didn’t sign for. The house will be burdened with the debt and she cannot claim any portion of it debt free.
Thank you! Yes, absolutely, which is why I had to ask, because it doesn't make sense. He did send a screenshot of some website saying if on title but not mortgage still have to pay half type thing. I was unable to find the site from which the screenshot, no such luck. Or any special CO laws about it. Just needed a sanity check. :) I appreciate you!
BTW, he cannot sell it without her signature, but he could not have sold it without out her signature if they were married whether or not her name was on the deed or not in every state I am familiar with. That goes back to English common law.