What Happens to a Rental Property After Divorce
My question involves a marriage in the state of: California
This is a very unusual situation, and I can't seem to find an answer anywhere. Divorce papers are about to be filed. No attorneys. Court mediation for custody and support.
Here is the question.
I am the petitioner. We live in a house I rented 1.5 years prior to the marriage (18 years ago). She is not on the month-to-month rental agreement, which includes reduced rent in exchange for maintenance, projects, upkeep, etc. Landlord has indicated that this arrangement will not be transferred, and that if I were to vacate, property will be rented at market value. Landlord expressed very clearly that she is not interested in renting to soon-to-be ex-wife.
What are the residency rights in this situation? I would like to continue with my agreement - as does the landlord, however, the soon-to-be ex-wife wants to stay in the house; however, at market value, she cannot afford the rent.
Any insight?
Re: Divorce - Rented Residence
First, one thing you need to consider is whether or not you really want to make it public that you have received reduced rent for your labor unless of course you claimed that as income on your income tax returns and paid income and self-employment taxes on it. I know that is not what you want to hear, but when someone pays you for doing work, it is earned income regardless of whether or not you were paid with money or paid with reduced rent.
This is called bartering and it is taxable.
http://www.irs.gov/businesses/small/...187920,00.html
So keep that in mind.
Second, California has no such thing as a residency right. There is community property, child support and the potential for spousal support depending on the circumstances. Does the lease state it is non-transferable? Does it state that you will be compensated for your labor with reduced rent?