Documents For Divorce Blog

Posted By Documents For Divorce on August 30, 2010

Mortgages and Divorce – What you Need to Know
by Stephen Daniels

People going through the divorce process need to know that until the final paperwork is signed, there can be many restrictions that will affect their lives. One area that will be affected is their ability to buy property or refinance an existing mortgage.

Finance is one of the major areas of consideration when a divorce process begins, and property division is often at the core of this concern. If the couple owns a home together, the obvious concern is who will maintain ownership. In this market, selling the property and dividing profit can take many years and become a source of frustration.

Frequently ownership of the property will go to the spouse that is best able to maintain the existing payments. Obviously the inability to maintain payments after the separation will lead to foreclosure, as well as destruction of credit. However, when there is both property and children to consider, the courts may decide that the custodial parent should keep the home, regardless of income, to minimize the disruption to a child’s sense of security and well being. The spouse with the higher income may be required to continue making house payments, or pay more spousal and child support.

While many couples want and prefer to make all decisions regarding division of property themselves, this is a case where what you don’t know can hurt you. For instance, did you know that once you have signed for a mortgage, your name cannot be removed from the loan until it is refinanced or paid off? If you vacate the property, but are still liable on the loan, you can be held responsible for the payments, should your ex go into default.

Independent legal advice is always a good idea when there is real property involved in the dissolution of a marriage. While there are costs involved in hiring an attorney, this is a time when it is important to protect yourself. Divorce laws, while already complicated, are also state specific. An attorney will know what laws apply to your state and your specific situation.

It is not uncommon for one spouse to be required to buy out the other spouse’s financial interest in the property.

Decisions regarding qualifying for a new mortgage or a refinance of an existing mortgage can involve one or more of the following:

1. A review of monthly debt obligations, including spousal and child support.

2. Proof of all sources of income, including child and spousal support.

3. Proof that the child support will continue for a minimum of 3 years could be required in the form of birth certificates for children.

4. The divorce settlement may require a division of all assets, including savings and pension benefits. This could affect the ability to get a loan because some loans require reserves or cash on hand. Depending on the value of the savings and assets, dividing the funds could lead to disqualification of a mortgage application.

5. Lenders will not approve a mortgage while a divorce is in process. While both parties may have agreed to terms regarding children, financial issues and property division, the terms are never final until a judge has signed off and a final decree has been issued by the courts.

6. The final decree for the divorce may stipulate that the property must be sold. Most lenders will be unwilling to approve a mortgage on a property that must be sold or that has been recently listed for sale.

Divorces are very complicated and usually unpleasant at best. It is always in your best interest to at least consult with an attorney so you have a better understanding of the laws of your state. You may be pleasantly surprised to find that a non-contested divorce, even when property is involved, is less costly than trying to undo the mistakes you might make when trying to go it alone and unadvised by legal counsel.

If you need a divorce lawyer or bankruptcy attorney in Portland, Oregon, he recommends Aurora Law Offices
. With over 25 years of experience, they offer a friendly environment, free initial consultations, payment plans and flat-fee charges available for some services.

Category: Division of Property, Post-Divorce | View Comments
Tags: assets & debts, community property, credit

Posted By Documents For Divorce on August 27, 2010

Postnuptial Agreements – A Joint Legal Expression Of A Couple’s Wishes
by Stephen Daniels

Many people believe that having a postnuptial agreement is like planning for a marriage to fail, when quite the opposite is true. In the United States, 50 percent of all marriages end in divorce. Frequently, those unions dissolve over financial issues and other matters that were never clearly delineated between the couple before they married. But postnuptial agreements can help assure that all parties are on the same page and working toward the same goals, after vows are exchanged.

A postnuptial agreement is similar to a pre-nup in that both are written contracts that define the ownership and distribution of a couple’s assets in case of divorce. The primary difference is that a postnuptial contract is written after a couple is married. The reason for writing the post-nup can be one or more of several common reasons ranging from amending a pre-nup to changed in financial circumstances.

Family law experts suggest that writing legal agreements, even after tying the knot, can be very valuable. While after-marriage contracts don’t necessarily mean a divorce is anticipated, they can provide important protections if a marriage does dissolve. In the same way that buying car insurance does not guarantee a car accident, post-marital contracts assure that you are prepared for any possibility.

Arranging post-marital agreements can be a valuable tool in improving or saving relationships, family attorneys say. When a couple experiences a tremendous amount of pressure from one person’s spending habits, for example, a formal arrangement to separate debt can be a marriage-saving solution. Additionally, important issues involving property rights, spousal support or what happens in the event of a death can all be addressed in the agreement, saving much stress. Even the process of bringing these and other important issues to the table can be key for resolving serious problems and opening up important lines of communication.

Many wonder why they should make such formal arrangements after a marriage has taken place. Actually, this may be the wisest and most equally beneficial time. Before being wedded, a couple may be less likely to see the realities of the union or the real struggles involved, and may take a contract less seriously. These agreements can also provide security for those who have experienced divorce before, and already see some problems that should be handled before they further affect the relationship.

Most people realize that even romance has practical elements and want to do all that they can to ensure a successful union. If a marriage does fail, post-nuptial arrangements can assure that the divorce is fair and equitable for both parties. When prepared by a family attorney, this type of agreement can be a tool to a lasting and happy marriage – or can even prevent a divorce from becoming a long, exhausting and costly court battle.

If you seek family attorneys in Las Vegas, he recommends Mullins Law Firm. With expertise in all areas of family and divorce law, including prenuptial and postnuptial agreements, these attorneys handle each case with efficiency, expedience and compassion.

Category: Postnuptial Agreements | View Comments
Tags: communication, infidelity, prenup

Posted By Documents For Divorce on August 25, 2010

Alimony Defined – How to Qualify and How Much to Expect
by Stephen Daniels

Alimony is the payment of support from one marital partner to the other after the relationship has ended. Because there is a stigma attached to the word alimony, it is also known as “spousal support’” and “maintenance.”

Not too many years ago, alimony or lifetime financial support was an almost automatic result of divorce, and the wife was inevitably the partner who received it. Nowadays, however, since it is no longer assumed that the husband is the sole breadwinner and supporter of the family, only about one in six divorces include ongoing monthly payments and almost 4% of the recipients are men. Assuming there is no prenuptial agreement in place, how much spousal support you receive is dependent on many complicated factors, primarily the divorce laws in your state.

For the most part, spousal support is based on the current and probable future income of both husband and wife. If there is a great disparity between the earning capacities of the two, the spouse who earns the larger sum will be required to supplement the other to the extent that it does not diminish their accustomed standard of living. The length of the marriage is also often taken into account, as are the ability and capability of the partners to support themselves. Additionally, the age, health and parental responsibilities of the recipient are part of the equation, and although child support is a separate matter, the financial consequence of caring for children during the marriage is usually considered in determining the amount of alimony awarded.

Lifelong alimony has largely become a thing of the past. Of course, there are always exceptions to every generality. An individual who has never worked, or who is disabled or otherwise incapacitated might be awarded lifetime financial support. However, most spousal support today is limited by the length of the marriage. Many states allocate it for half the number of years a couple has been together. In other words, if you have been married for ten years, you’ll most likely receive monthly support checks for about five years, unless you remarry within that time frame. It is important to remember that alimony payments are counted as taxable income for the recipient and as a deduction for the paying spouse, financial facts that your lawyers should weigh when finalizing arrangements.

There are states where alimony might be rewarded to one or the other partner of a co-habitation agreement, even if the couple was never legally married. And, of course, same sex marriages and living arrangements have been in the news a lot in recent years. State laws will dictate whether or not spousal support is called for under these circumstances.

Although it is possible to negotiate a no-fault divorce and subsequent support payments without legal help, the process is littered with legal hurdles. It is advised that if one partner hires a divorce lawyer, the other one should as well. The same holds true if one spouse is an attorney. Remember that lawyers are bound to represent the best interests of their client, and if you are not their client, you should seek legal counsel to protect your own interests.

In Portland, Oregon, if you need a divorce lawyer, call on Aurora Law Offices. With over 25 years experience and a reputation for honesty and integrity, they have specialized in divorce and bankruptcy since 1996. They offer a friendly environment, free initial consultations, payment plans and flat-fee charges available for uncontested divorces and bankruptcies.

Category: Spousal Support | View Comments
Tags: alimony, guideline support, support