Divison of Equity or Loss from an Investment Property
My question involves a marriage in the state of: PA
I bought a house (fixer upper) before We got married and We lived in it for a while. After so many years We decided to buy another fixer upper house and rent this one out. Now, We are getting divorce for the past 3 years. She just picked up and left! I want to note that my soon to be ex wife didn't put one red cent into or on any of these properties and her name is not on title or mortgage of these properties. Now, I'm trying to sell the rental property. I bought this property for around $16,000 and I'm selling it $4,000. The property needs a lot of work or torn down. I still owe $1400 on this property.
What I want to know is, does she owe me for the last 3 years of payments on this or both of my properties and is she entitled to half of the net proceeds on the rental?
Thank you,
Re: Divison of Equity or Loss from an Investment Property
No, you don't get to bill your spouse for payments made out of the marital estate. If the home is paid off, such that you have $4,000 in equity, she may be entitled to half, and she also may be able to claim a share of any deduction for a capital loss. The details of how the home was purchased and titled, and how payments and maintenance were funded during the marriage, can play a role as to whether you could plausibly claim the home to be separate premarital property. I'm not optimistic based on what you've told us, but you will want to discuss the details with your divorce lawyer.
Re: Divison of Equity or Loss from an Investment Property
I have been paying the payments, sense we are married doesn't she owe me half of the payments on both of the houses sense she left?
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or do I get half of payment off net proceeds for her half of the payments?