Continued from “D-I-V-O-R-C-E and Real Estate, Part 2”.
Using the same Due Diligence while working out what’s to be done with jointly owned real estate during a divorce makes sense. How can the parties know how much the property is really worth or just how big the debt associated with the property really is?
I’ve already suggested searching the title to know exactly how encumbered a piece of real estate may be by adding up all the mortgages, home equity loans, secured debt liens, tax liens, judgments, HOA liens, mechanic’s and materialman’s liens and any other liens discovered in the title search. Even though it may seem blatantly unfair to saddle the family home with business or personal or lawsuit debt, it happens often. I have had the misfortune to be sitting at the table when one spouse finally has to confess to the other about the second mortgage or equity line taken out without the other’s knowledge or permission. Very sad. (more…)