Legal Question in Real Estate Law in Maryland

I hope someone from MD answers this question. Divorce decree in MD doesn't specify who pays mortgage, property tax, expenses, or if I will owe 1/2 rental value for my own use of the home, or if I'm allowed to rent portion of home, or share rental income with ex. I don't rent out the home now, but we share a college age son who lives in the home, whom I support, and he does not pay rent. Decree does say after 3 yrs. of use and possession (U&P) by me is up the home is to be sold and proceeds split. I'll have to check if it said after 3 yrs. a court trustee has to sell it as opposed to trying a Realtor first, but know we could use a Realtor now if we both agreed. Decree sets no time frame on how long we would try to sell it before a trustee would sell it. The decree says nothing about what would happen to rental income if I rented out the home so I could afford the mortgage, or if I'd ever owe him 1/2 rental value for myself living in the home, or who pays property taxes, homeowners insurance, maintenance expenses, but I pay for all now since I live in the home. The only thing decree says about mortgage is ex was ordered to contribute a little (<25%) toward mortgage for 15 mos, but that period is up. There's about 20 mos. left in U&P, I can't continue to afford payments, and he has refused to sell, buy or let me buy when interest rates were lower, and said it is a better "investment" for him to let me pay full mortgage for the full 3 yr. U&P period. His words and actions have demonstrated his goal is to profit regardless if I default on payments,and he does not seem concerned about his credit. He bought a more affordable home several months before divorce trial, dissipated joint savings, fixed up the home, makes approx $50,000.00 more than I so is not worried about his credit dropping. There is a judgement that he owes me money worth almost half the equity, so this might de-motivate him to cooperate. If I'm still in the U&P period, can I rent a room or two to help pay the mortgage on the home that belongs to both of us without owing him half of the rental income? If I would owe him half, could I avoid paying half if I had all rental income deposited into separate account to pay monthly housing payment (property taxes, homeowners insurance, mortgage) since it is his "investment" property too, and would it be better to pay only property taxes (>$7,000.00) vs. mortgage payment? I don't see why if it is his property and he is gaining equity, that I am solely responsible for property taxes. If there was an account, a paper trail of the rental income would prove all went straight to the jointly owned "investment" property. Would that keep me from having to pay 1/2 back to him, and if a tenant still lived in the home for a few months after the U&P period before the home sold would he still only be entitled to half the rental income from the tenant? Would ex only get rental income that was collected after the U&P period was up and before home sole? Is there such a thing as giving up U&P before decree ordered period is up, and getting court order then for both owners to share mortgage? I have been told I could be considered to owe him 1/2 rental value for my use of the home under certain conditions, but am not sure under which conditions. Could you give your opinion by answering as possible whether or not the statements which follow are most likely True or False, or even indicate Depends or Unsure (T/F/D/U), since the divorce decree does not address the issue of owing rent or rental income? Here are the statements that I'd like you to indicate if you know are likely to be true or likely to be false: 1. During the U&P period when ex is no longer ordered to contribute to the mortgage, if I rent a bedroom to a tenant to afford to pay the mortgage, I could/would likely owe ex 1/2 the rental income from the tenant even though I pay the full mortgage. 2. It is only if I rent a bedroom to a tenant after the U&P period is up that I would/could likely owe ex 1/2 the rental income collected from the tenant until the home sells, even if I pay the full mortgage. 3. The ex will owe me, or I will be credited towards my share of the equity, 1/2 my payment of mortgage/taxes for each month I pay full mortgage/taxes after the U&P period is up only if I move out of the house. 4. Number 3 is true even if I do not move out of the house, so long as he is free to use the home, even if he chooses not to use the home. 5. Number 3. is true, but only if I get 100% of property out of the house. 6. The ex will owe me, or I will be credited towards my share of the equity, 1/2 the mortgage/taxes for each month I pay full mortgage/taxes after the U&P period is up even if I do not move out of the house, so long as he is free to use the home, even if he does not exercise that option. 7. I will owe the ex.1/2 the rental value of the home which will be credited towards his share of the equity when the home sells, for each month I lived in the home after the U&P period expires until the home sells, even if the home is listed 3 months before the U&P period is up, and even if I never rent a room to a tenant. 8. Number 7 is true regardless of whether a court appointed trustee is trying to sell the home. 9. I will owe the ex.1/2 the rental value of the home which will be credited towards his share of the equity when the home sells, for each month I lived in the home, even for the time during the U&P period. 10. The ex. cannot make me pay any rental value for our college son who lives w/ me during my U&P period, but does not pay room and board since he is a full time college student and is paid minimum wage for a part time job. 11. There is a significant chance that I could be made to pay ex. for a portion of the rental value for my college son's use of the home during the time he lives in the home after the U&P period is up and before the home sells, even though our son does not pay me room and board since he is a full time college student, and he is paid minimum wage for his part time job. 12. Only If conditions exist that cause me to owe the ex for a portion of the rental value of the home for my use of the home, am I likely to owe ex for my college son's use of the home. 13. During the U&P period, I will not owe my ex 1/2 the rental value of the home for each month I am residing in the home during the U&P period. 14. If I pay the full mortgage and rent to a tenant even when I have U&P this would likely or could result in me owing the ex not only rental income from a tenant, but me owing the ex 1/2 the rental value for my use of the property even though I am within the U&P period, since it is the act of renting a portion of the house to a tenant that results in the home being considered rental property. Clarification would help. Thanks.


Asked on 8/13/11, 10:27 pm

1 Answer from Attorneys

Cedulie Laumann Arden Law Firm, LLC

Thank you for your post. Unfortunately this forum is designed for brief questions and does not tend to be the best forum for long, fact-specific questions. That being said, the law does contain some general default rules on how jointly owned property is treated (both with respect to the obligations & rights of joint owners). You may want to speak with your divorce attorney about the specific rights contained in your use & possession. Outside of a use & possession order, yes, it is possible that a joint owner can make a claim for a portion of income produced by the property though that right usually is counter-balanced by the obligation to pay a respective share of the mortgage and taxes. The law does offer a way for joint owners to force a sale by means of a sale in lieu of partition action. To get more specific answers or to discuss this in greater depth you may want to set up a consultation with an attorney. While I hope this general information helps it should not substitute for legal advice and does not create any attorney-client relationship.

Read more
Answered on 8/23/11, 8:45 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Maryland