Figuring Equitable Distribution


#1

We have finally finished our pre-trial and now going to trial. I will give a couple examples and then hopefully you can give me an idea of how the numbers work.

  1. Rental property(small shopping center with lots of problems) at time of separation debt was $536,000. She had an appraisal completed last month and it came in at 505,000. Current debt is 430,000. I have managed and paid the debt down. Total actually paid is 205,000 including interest, but the principle is reduced by $136,000.
  2. Old rental house that was destroyed years ago. No one has lived in it for 7 years or more. A real estate broker did a CMA on property and valued at 12,500. I paid 15,000 on the loan until last January I could not continue. It went into foreclosure in Sept 2013. Loan at separation was $52,000 for the 1st and 2nd notes. The house sold for $6,000 at the court house steps. The mortgage company wrote off the 1st mortgage completely. The 2nd mortgage they wrote off, but still hold us responsible for the loan. The amount is now 20,000 with no interest accumulating.
  3. House living in. Wife left me with 4 children in the home. I want to ask for unequal distribution. She did an appraisal and it came in at $166,000. Owed at separation Sept 2010 was 120,000. I have made all payments(over 36,000) but the principle owed today is $110,000. This will show positive equity. How may this look when asking for unequal distribution.

Can you please give me an idea of how this may look at ED.

Thank you so much…


#2

In all three scenarios, you should be asking for credit during your equitable distribution trial for paying down the debts that are owed by the parties. You may not get a dollar for dollar credit. For instance, since you have been living in the marital residence, the court may apportion a portion of the amount that the debt has been paid down as rental cost of the house.