Legal Question in Family Law in New Jersey
debts
My wife and I are in the process of a divorce. Also we are refinancing the house to get rid of some bills. She owes $45K and I owe $25K, both balances are individually incurred. We have agreed to include that money into the new mortgage but when we sell the house each has to be responsible for his/her debt. We thinking about signing an affidavit stating that upon selling the house, we have to pay our own individally debt in addition of the mortgage balance jointly held. In other words, If we now owed $250K in mortgage and the new mortgage is $330K (including closing costs), then when the house is sold we have to split the proceeds in such a way that each pays the portion corresponding to the mortgage ($250) plus the debt built into the new mortgage ($80K). So she will be reponsible for $45K and I will be reponsible for $25K plus half of the closing costs($10K). So, would an affidavit signed by both of us be legally binding when it comes to sell the house and divi up the proceeds?
Thank you,
--name removed--Aguado
2 Answers from Attorneys
Re: debts
I understand the arrangement that you and your soon-to-be ex-wife have made. YOu need to hire a divorce attorney to handle your divorce. Please call me if I can assist you. 973-890-0400.
Bob Davies, Attorney at Law
Re: debts
I am a bit surprised by your approach, but it may help you avoid a hostile divorce. In a divorce assets and debts acquired during the marriage are normally equally divided.
When you sell your house you could distribute the total amount of debt paid off with the refinancing. in accordance with your joint wishes, by simply giving her the difference between the two debt amounts and then dividing the balance of the net proceeds equally between you.
It is better to have an agreement dealing with all of the marital assets because some other assets or debts may cause your partial distribution of the sale of the house unfair to one of you when it comes time to deal with all of the marital assets and debt. Remember that pensions, 401ks, sail boats are divided on a 50/50 basis.
Gary Moore, Esquire
Hackensack, New Jersey
8002 73 7933
www.garymooreattorneyatlaw.com
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