So me and my wife got divorce and now doing division of property in Fayetteville, NC. She continued to live in property a year after I left house. Yet I continued to pay mortgage. I paid for her insurance and gave her spousal support. after she moved out of my house(making it vacant at this point) I started renting it out between 2012 through present day. Her lawyer is subtracting: Rent income-mortgage payment to determine the profit made off house. However, she is not subtracting all the other housing related expenses such as repairs, maintenance to determine net profit. Will the judge/mediator acknowledge all my other expenses for the general upkeep of house? Is she entitled to 1/2 rent profit after date of seperation when I am stuck paying for the house? It takes both of us to sign realtor papers to agree to put house on market to sell- so her lack of coorperation is leaving me stuck with house. Also I live in Atlanta so I have to pay for 2 places to live if I don’t rent it out. How do you think the judge will handle this for equitable distribution?
Yes, the routine expenses of maintaining a rental property should be included to determine the net income, not just the mortgage expense.
Your wife is likely not entitled to one-half of the rental profit since you have been solely financially responsible for the home. It can however, be counted in your total income to determine alimony if that is still an issue.
A likely outcome, based on the information you have provided, is that the house will either be distributed to you to do what you want with it or the house will be required to be sold and the equity divided (it’s possible that you could receive a reimbursement of the principal reduction of the mortgage payments you have paid).
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
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