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-   -   Divorce: who gets what if there is a cosigner on the mortgage loan? (https://www.askmehelpdesk.com/showthread.php?t=547047)

  • Jan 23, 2011, 10:21 AM
    gordonk3
    Divorce: who gets what if there is a cosigner on the mortgage loan?
    My spouse bought a house a year ago. We were not married when he started the process, but we were married before we closed on the house. Due to less than perfect credit, we had to have my spouses father cosign on the mortgage loan which my name is not on. Along with cosigning, my father in law gave us a gift of $2000.00 to help pay for closing costs, and assisted us financially to pay for a new bathroom and new roof.
    My spouse and I have decided to begin the process of divorce. I will be the one leaving the marital home along with our 2 young children for the time being as it is volatile and unsafe.
    My question is... when we divide assets who gets the house? My name is not on the loan, or deed. Do I have rights to the house, or money from it if it's sold? I have paid the mortgage payments with my spouse. Does my father in law have any right to money after (if) the house is sold?
  • Jan 23, 2011, 10:31 AM
    dontknownuthin

    It's a marital asset and you are entitled to 50% of the equity. Though your name is not on it, the home was purchased during the marriage. Whatever either you or your spouse acquire during your marriage, including personal 401K accounts, savings accounts, property in one person's name, etc. is all fair game and you are each entitlted to 50% of whatever the other person owns.

    Exceptions can be made for inheritance in certain situations. Or if the home was purchased prior to the marriage (starting the process means nothing... it's the closing date that matters) there might be an offset. But even if he owned it before you married, and you lived there and contributed during the marriage, you'd be entitled to half of the equity built during the marriage.

    You will need an attorney to sort this out completely.

    Your father in law probably has no right to the home but an attorney would need to review the transaction to be sure.
  • Jan 23, 2011, 01:39 PM
    ScottGem

    Your rights probably depend on local laws (ANY question on law needs to include your general locale as laws vary by area.) You should consult an attorney to determine the distribution of assets.
  • Jan 23, 2011, 03:13 PM
    JudyKayTee

    Agree with Scott - need to know the State in order to answer.

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