So, me and wife has 2 properties. A1 and A2.
A1 property is fully paid and is considered to be an investment property, since tenants are living there. A2 is the house that we recently bought in Feb 2020 and we have mortgage with the bank. Both properties has our joint name on the deed and all the paperwork’s including bank loan. We have 1 child together. She has one from previous relationship as well, so she got 2.
Me and wife are getting legal separation.
How to divide properties equally?
She is asking that She wants A1 house, which is fully paid and letting me go with A2 house, which currently has mortgage of 184k balance left.
Do you think it is equal? or if not, what will be equal in this case?
What do you advise me to do.
Suppose if I take A2 house. how to get her name off of from the house and everything?
You can divide the properties with you each taking one, however, it sounds like this is not an equal distribution. So in that case, the values of both homes (A1 = fair market value at date of separation; A2 = fair market value at date of separation - principal mortgage balance at date of separation) are put in a balance sheet, along with all of the other marital assets and debts, and they are balanced against each other in the aggregate to determine a net value that each spouse is keeping. If one spouse is keeping more value than the other, then that spouse must pay the other spouse to equalize the distribution.
To get either house in your name only, she will have to sign a quitclaim deed conveying her interest in the property to you. To get the mortgage in your name only, you will have to refinance the mortgage by yourself or with a third party cosigner.
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