Home Equity Credit Line

North Carolina Divorce Law Divorce and Separation Answers
1

My STBX persuaded me to apply for a HECL a short time after we purchased our house as my name is the only name on the mortgage. I did and forgot about it. A short time later my STBX announced she wanted a divorce and was leaving. Unbeknownst to me she had opened and activated the HECL with a logonid and password unknown to me and had taken $50,000.00 out of the HECL and purchased a townhome for herself. When confronted with this she said she figured it was her share of the equity in the marital home based on the appraisal done at that time and was entitled to it. Of course as the Real Estate market has plummeted the house cannot be sold for what is owed on it. That means I have no equity and have two mortgages to payoff. Now she is claiming that $30,000 of that is “payback” money that she “loaned” me to payoff a previous alimony case with a previous wife. There was no agreement that this was a loan - her words to me when I was fighting in court (and winning) was “just pay her off and be done with it - sever the last tie”.

She will be serving me with papers this week - I need to know where I stand with regards to that $50,000 owed on the HECL.

I had been paying interest only for two years but I started at the 1st of 2011 paying Prin & Int.

Help Please!!!

Unicorn686

2

The court will equitably distribute the property, after a total valuation of all the assets and debts is done. She may be ordered to return the 50k, but I cannot say for sure what would happen in court.

3

Thank you for your swift reply. We are not planning to go to court but rather filing for an uncontested divorce. I want to put something into the papers that addresses this issue. I am thinking that when (and if) the house is ever sold, I am to get the $50,000 replaced first then we will share the balance 50/50; less of course any expenses incurred. How should I word this? Unicorn686

4

Drafting specific language is beyond the scope of this forum, but I can tell you that it should be clear that you receive the first $50,000 in proceeds before the remaining proceeds are split.

5

Thank you - I will draft the appropriate verbiage to include in the papers.

6

You are welcome, I wish you the best.