HOUSE UNDER WATER BY $70K ! what happens?

[Abdefg123]

So I bought the house just 4 months b4 getting married and immediately moved NJ and her son in so I am sure it will be eligible for eq. distribution as the 'marital home'.

BUT: My name is only name on deed and mortgage. She never really worked aside from couple part time jobs over the 7 years.

HOUSE appraisal came in, its $70k UNDER WATER ! She CANNOT get approved for a mortgage (bankruptcy destroyed our credit which is complete after 6 more payments(months)). She cannot afford payments even with a most generous child support, especially with NO job and no intention it seems to get one. Keeps reiterating that its her job to be home with kids, she's GONNA play that card..

Anyway: WHAT'S GOING TO HAPPEN to the house? I want to keep it !!! WHY? b/c the mortgage was modified and I only have to pay $850 or so per month for a 4 br, 2 bath HOME ! My parents are across the street and would help me as needed with bills,etc.

Anyone go thru this similar situation??

[BubbaGumpShrimp]

Lots of variables there and some obvious questions that people (including myself) will have:

-What state?
-Any kids of the marriage?
-Did you adopt her son?
-What did she do for a living/how much did she make before your gravy train came along?

[Abdefg123]

New Jersey.
3 kids.
never adopted him.
worked for $15k-$20k/year with min. wage job.

What will become of home? she can't get approved for a mortgage..

[BubbaGumpShrimp]

There is nothing to "equitably distribute," as the house is $70k underwater.

Your mortgage is only $850/month? How is it that she can't afford to make that payment on child support for three kids plus a ~$10/hr job? She may not want to work, but I would imagine that the judge will tell her to get a job. She was married seven years...not 27 years. She can't expect to be on your gravy train forever.

My $.02...you only bought it four months before the marriage...but it's still a pre-marital asset. Unless she gave you money for the express purpose of making a down-payment, I don't see how she can claim that it's her house (legally).

There are any number of possibility as to what can happen with the house. Technically, it's your house...as you bought it before the marriage. My marriage was a shorter duration, but that's what the judge decided in my case (Virginia here). Of course getting her out of the house will be a different matter altogether.

Don't be surprised if she gets awarded at least temporary use of the house. In my case...I was married for only 11 months (no kids of the marriage). She lived in the house for FREE for four months before I got her to court. Even then...the judge still gave her another 2.5 months in the house. I guess what I'd say there is, don't be surprised if she gets to camp out on your dime for a while.

If I were in your shoes and it looked like she did have a claim to the house, I would push to unload the house as a short-sale. Why? In that situation...it's either sell it now and be done with it...or deal with her as a tenant or leach for eternity.

[Thermite]

My $.02...you only bought it four months before the marriage...but it's still a pre-marital asset. Unless she gave you money for the express purpose of making a down-payment, I don't see how she can claim that it's her house (legally).

Unless the OP paid cash out of his savings account for that house up front, i.e., he owned it free and clear without having to take out a mortgage, then it will almost certainly be considered a marital asset. As soon as he made the first mortgage payment after they were married, the house became a "co-mingled" asset, and subject to (so-called ) equitable division.

I was in a similar situation here in Illinois. Even the money that I personally put into the place before getting married was subject to division, because it was "the marital home". The OP should search caselaw in his state using that phrase. It's a legal line of reasoning that basically said even though I bought it with my money, everybody involved knew the home was intended for both of us, so she should get half regardless.

In the OP's case, a possible strategy is to keep the house and ask her to pay half the debt, but be willing to negotiate to take on all the mortgage debt if you get to stay in the house. Because staying in the house could be a huge help to your custody case as well.

[soccer rocker]

Similar situation here, I put 33% down 2 years prior to marriage. Not underwater but house definitely hasn't gained in value. I have some other significant property that has been taken off the table so lawyer has advised letting half the home equity go. It's an effin' bitter pill to swallow for sure. She did say it might be a different story without the other separate property already in my favor.

Anyhow, since the house is underwater and you're the only name on the loan, I suspect you'll be able to keep the home but you'll probably be asked to assume the debt too.

[BubbaGumpShrimp]

My $.02...you only bought it four months before the marriage...but it's still a pre-marital asset. Unless she gave you money for the express purpose of making a down-payment, I don't see how she can claim that it's her house (legally).

Unless the OP paid cash out of his savings account for that house up front, i.e., he owned it free and clear without having to take out a mortgage, then it will almost certainly be considered a marital asset. As soon as he made the first mortgage payment after they were married, the house became a "co-mingled" asset, and subject to (so-called ) equitable division.

I was in a similar situation here in Illinois. Even the money that I personally put into the place before getting married was subject to division, because it was "the marital home". The OP should search caselaw in his state using that phrase. It's a legal line of reasoning that basically said even though I bought it with my money, everybody involved knew the home was intended for both of us, so she should get half regardless.

In the OP's case, a possible strategy is to keep the house and ask her to pay half the debt, but be willing to negotiate to take on all the mortgage debt if you get to stay in the house. Because staying in the house could be a huge help to your custody case as well.

Yeah..I'm thinking that my situation would have played out differently in court if: 1. We were married longer, and 2. We had kids. Not that ownership really matters in my case at the moment (as my NJ has been rent free in my house for 5+ months).