IF I GIVE MY WIFE THE HOUSE, DO I STILL NEED TO PAY ITS EXPENSES?

QUESTION: I am getting divorced from my wife, if I give her the house, do I still need to pay for the insurance and maintenance?

MY RESPONSE:

If the house is awarded to your wife by the Court or through a Stipulated Judgment (i.e., by agreement of you and your wife, reduced to a Judgment), the award should provide that she receives the house subject to (i.e., liable for) its obligations.

If that occurs, you would transfer title to the house to your wife, the house would become your wife's sole and separate property, and the costs of the house, including its loans, property tax, homeowner's insurance and maintenance (if she chooses to maintain the house) will be her obligations.

However, if there are loans on the house (such as a mortgage, 2nd trust deed and/or home equity line of credit), you would remain an obligor on those debts unless your wife refinances the house. The lenders would not be willing to let you off the hook, absent such a refinance.

If you remain an obligor on those debts, that will likely affect your ability to qualify for a loan to purchase another home, so you might require in your Stipulated Judgment that your wife refinance the home as a condition for her to receive the home in the divorce.

If your wife can't qualify for a refinance, you might reconsider whether or not you would want to transfer ownership of the home to your wife, since your remaining an obligor on its loans would affect your credit.

An alternative might be to sell the home and divide its net proceeds.

If you quitclaim the house to your wife against her wishes, you could still be held responsible to pay costs related to the house because you can't force your wife to accept the house and its liabilities.

This educational blog is brought to you by DONALD F. CONVISER, an effective and aggressive Los Angeles Family Law Attorney and Divorce Lawyer serving clients in the courts of Los Angeles and Ventura County for over 35 years,owner of Warner Center Law Offices, with offices in Woodland Hills and Century City. Call 888.632.4447 or 818.880.8990 for a free confidential consultation with a Certified Family Law Specialist to discuss your divorce or family law issues. | www.conviser.net | www.conviserfamilylaw.com |