Legal Question in Family Law in Michigan

Re: My rights to dividing property

Hello, and thanks for visiting us.

It is fortunate that your name is on the deed as that fact will support your claims re. the $30K and the $5K. Here is my take on the issues:

1. As to the $30K Home Improvement Loan, you indicated that the house was used as collateral for that loan so the issue of having that interest protected by the proceeds of any sale of the home, whether that sale is done with merely the approval of the two of you or whether it is done by order of the court as part of a property settlement attendant to the divorce. This should not be a big issue.

2. As to the net equity in the home, which I would define as the sales price minus the costs of sale (commissions, etc.) minus the loan repayments to third-party lenders (the mortgages), the division of that net equity will be a hot topic in any pending divorce action.

She will claim that the entire net equity belongs to her, since she brought that home into the marriage, a marriage of very short duration.

Your argument will be that the net equity was protected and that the net equity was enhanced due to your efforts:

A. Your $4-5,000; and

B. The use of your credit to support the refinancing of the first mortgage - this is the important one - if she were to have sought and obtained the mortgage solely on her own, the terms would have been "X"; with your credit the first mortgage had better terms attached to it ("X minus something"). How much did the equity of the house benefit from having your name attached to the mortgage is going to be the key question and, potentially, the issue of much debate. There is no easy answer here, and the issue will depend on how well your attorney does the "numbers" compared with her attorney.

************

In preparation for the battle, I would strongly suggest that you find ALL cancelled checks and any other evidence showing every cent that you put into that home, if possible. Direct evidence of those contributions is crucial and critical.

CAN YOU LEAVE? Sure, you can leave. But document EVERYTHING - conversations, time, place, everything you can think of. Make sure that the mortgage is paid (you are an obligor, after all) and keep track of all payments that you make after "separation" as you will have an argument to receive credit for those post-separation payments.

Best of luck in resolving this whole thing. Divorces are tough in the best of cases. Find a good attorney fast - get recommendations from friends and colleagues, don't just shop on price. You have some interesting and difficult issues, and a bargain basement lawyer who may process divorces in a cookie-cutter fashion, is NOT the person for this job.

Best,

Tom Weiss