Separation Mortgage Payments / Equity Considerations


#1

I have been legally separated from my wife for 13 months. We have a very amicable relationship regarding our situation. We do not know what to do with the family home. The home is old and was purchased in disrepair. Renovations were made but are mostly incomplete. A recent appraisal puts the house at $220,000. The amount owed on mortgages totals just over $200,000. I still live in the house and have been making every payment for the mortgages, maintenance, repair and renovations (totals $20K+). From my point of view it would be detrimental, and likely futile, to place it on the market as it is. It could be futile for me to continue renovations with this question up in the air.

What options do I have to keep the house?

What consideration is placed on renovations, mortgage payments, etc in terms of distribution of equity over the course of a separation?

What course of action would be the most fair?


#2

You may keep the house and the law regards your wife as being entitled to ? of the equity in the home as of the date you separated. The increase in value you have actively made since the two of you separated will be attributable to you and are not marital in nature.


#3

If it is arrived that she is entitled to $10K and I am to keep the house, what vehicle is commonly used to finance this sum if the house isn’t sold? I do not have $10K in any liquid form.


#4

The spouse keeping the home normally refinances the home into their sole name and borrows the additional funds to pay the spouse who is owed equity.