What does equitable distribution mean in a divorce?
What does equitable distribution mean in a divorce?
Equitable distribution is a legal theory whereby marital property is distributed equitably in a divorce proceeding. Property assets are classified as either separate property or marital property. Most US states follow the equitable distribution theory.
Should non working spouse be on mortgage?
Applying Without Your Spouse. Of course, there’s no rule that says you have to apply for a mortgage with your spouse. In fact, leaving one person’s name off the mortgage might be more sensible. You might have an excellent credit score and the ability to qualify for the most favorable interest rate.
How does a buyout work in divorce?
To keep the house, you may be required to buy out your spouse’s equity in it, which is measured by the value of the house minus any mortgages owed on it. You might be able to “swap” assets. In other words, you would give up your half of some other assets you own jointly to pay for your spouse’s half of the house.
How do you get your spouse out of the house in a divorce?
In most cases, a buyout goes hand in hand with a refinancing of the mortgage loan on the house. Usually, the buying spouse applies for a new mortgage loan in that spouse’s name alone. The buying spouse takes out a big enough loan to pay off the previous loan and pay the selling spouse what’s owed for the buyout.
