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  1. #1
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    Question How is Property Divided in a Maine Divorce

    My question involves a marriage in the state of Maine. Filed for Divorce in January. Proposed settlement included husband buying me out of our home - with 50% of equity going to me (I will be relocating to another state). I would also keep my own 401k (220K). Husband is now refusing to split equity in home and is going after half of difference in our 401k plans because he is angry that I will not just walk away with just my 401k. We have been married for 24 years, own a home with a market value of $166,000, both names on deed and mortgage which has an outstanding balance of $75,000. He has $100,000 in investment accounts with my 401K being 220,000. Right now settlement is being approached on a equal distribution.

    Would this be how the calculation would be determined if just splitting equity and keeping our own investment accounts?: Husband: 100,000 in investment accounts; home- 121,000 (-my share of equity)= 221,000 Me: 220,000 in investment account; equity - buy out 45,000 = 265,000. There is still the issue of all of the house contents. We have already separated our vehicles and debt.

    A settlement offer was recently presented to him: $35,000 and I would maintain my 401K. With the exception of some personal items from my home, I would waive any right to rest of house content which would increase the value of his property share. He also has a small construction business that he started prior to our marriage but funded via our joint accounts after marriage which does not generate much profit over the past few years and a future worker's compensation settlement payout which he did propose to his former employer but is now holding out on that until after we divorce to limit any potential for a share to be distributed to me (income portion) I would waive any potential rights to those two things also. He has rejected that offer.

    Unfortunately, my husband is verbally and mentally abusive and has become worse since my filing for divorce. I am hoping to finalize a settlement soon so I can move on to my new life.... May need to move to a mediator for assistance.

    Thank you.

  2. #2
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    Default Re: How is Property Divided in a Maine Divorce

    A settlement is what it is -- it's what you agree, and is calculated however you choose to calculate it. It is appropriate to treat retirement accounts funded with pre-tax dollars as being worth less than assets that are paid for or funded with post-tax dollars, because (unless for some reason the parties choose not to do so) the calculations should be based on the actual present value of the asset.

    If you are confused by numbers, or are intimidated by your husband's behavior, you should work with a divorce lawyer.

  3. #3
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    Default Re: How is Property Divided in a Maine Divorce

    Quote Quoting Tymbaa29
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    My question involves a marriage in the state of Maine. Filed for Divorce in January. Proposed settlement included husband buying me out of our home - with 50% of equity going to me (I will be relocating to another state). I would also keep my own 401k (220K). Husband is now refusing to split equity in home and is going after half of difference in our 401k plans because he is angry that I will not just walk away with just my 401k. We have been married for 24 years, own a home with a market value of $166,000, both names on deed and mortgage which has an outstanding balance of $75,000. He has $100,000 in investment accounts with my 401K being 220,000. Right now settlement is being approached on a equal distribution.

    Would this be how the calculation would be determined if just splitting equity and keeping our own investment accounts?: Husband: 100,000 in investment accounts; home- 121,000 (-my share of equity)= 221,000 Me: 220,000 in investment account; equity - buy out 45,000 = 265,000. There is still the issue of all of the house contents. We have already separated our vehicles and debt.

    A settlement offer was recently presented to him: $35,000 and I would maintain my 401K. With the exception of some personal items from my home, I would waive any right to rest of house content which would increase the value of his property share. He also has a small construction business that he started prior to our marriage but funded via our joint accounts after marriage which does not generate much profit over the past few years and a future worker's compensation settlement payout which he did propose to his former employer but is now holding out on that until after we divorce to limit any potential for a share to be distributed to me (income portion) I would waive any potential rights to those two things also. He has rejected that offer.

    Unfortunately, my husband is verbally and mentally abusive and has become worse since my filing for divorce. I am hoping to finalize a settlement soon so I can move on to my new life.... May need to move to a mediator for assistance.

    Thank you.
    To be honest, I tend to side with your husband on this one.

    So...taking each asset separately:

    Home equity is 91k which would be 45.5k for each of you.
    His investment assets (which would have some tax consequences if sold) 100k, that is 50k for each of you.
    Your retire assets (again which would have tax consequences some day) 220k that is 110k for each of you.

    That totals 205.50k for each of you.

    Whether or not his worker's comp settlement would be considered a marital asset to be divided between the two of you depends greatly on what the settlement is intended to cover. You would perhaps be entitled to a share of lost wages, but you would not be entitled to any share in money intended to cover his future medical care.

    At the same time the fact that you would have to pay tax to liquidate any of your 401k is a factor. If you divided each assets separately, then each of you would end up with stocks that could have taxable consequences and each of you with retirement assets that would have taxable consequences if liquidated and then you would each share in the home equity which would not have any tax consequences.

    However, that leaves each of you with only 45.5 in non-taxable money. The difference between 205.5 and the 220k you actually have in your retirement account could make up for not ending up with any non-taxable money.

    Therefore, I think that you are potentially asking for more than you would be entitled to receive, and understand your husband's frustration that you will not accept to just walk away with your 401k.

  4. #4
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    Default Re: How is Property Divided in a Maine Divorce

    Considering the fact that for the majority of our marriage he was unemployed or on workers compensation, it is difficult to just walk away from my home although I am not interested in staying in Maine; however, based on consideration of only the information presented, I can see where your answer is coming from. The information about tax consequences is helpful.

    I am working with a divorce lawyer; however, I wanted to inquire about how the value of my home played into the scenario (not just the equity value) when splitting the assets. That was one area that continued to generate some confusion. Based on the answer provided by IIworking, it appears that value is not included as a consideration for equitable distribution.

  5. #5
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    Default Re: How is Property Divided in a Maine Divorce

    Quote Quoting Tymbaa29
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    Based on the answer provided by IIworking, it appears that value is not included as a consideration for equitable distribution.
    What do you believe to be the difference between the market value of the home, and the "value" of the home that you claim is not being considered?

  6. #6
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    Default Re: How is Property Divided in a Maine Divorce

    I hope that I am explaining what I find confusing correctly. If I would agree to completely walk away from my home ($166,000 which includes a 91,000 equity total and $75,000 that he would refinance), would the total market value amount be included when calculating my husband's overall total value of what was divided. Ex: Husband $166,000 + his investment accounts of $100,000 = total value of his marital consideration equaling $266,000. My total value which would be only my 401K would be $220,000 which would be $46,000 less resulting in a large imbalance of the division.

    In the answer that was provided the example only split the equity and our investment accounts in determining each total share. It does not include the remainder of the market value ($75,000) in my husband's total. That is the piece that I find confusing. The remainder of the home value once equity is subtracted.

    I hope that the above makes sense. I appreciate your reply and question. Thank you.

  7. #7
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    Default Re: How is Property Divided in a Maine Divorce

    The total market value of the home is what you would get for it if you sold it. It has absolutely nothing to do with investment accounts. You divide the equity in the home by subtracting the debt secured by the home (e.g., the home mortgage or a HELOC) in order to determine the equity, and dividing the resulting figure. You divide the retirement accounts separately.

  8. #8
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    Default Re: How is Property Divided in a Maine Divorce

    Quote Quoting Tymbaa29
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    In the answer that was provided the example only split the equity and our investment accounts in determining each total share. It does not include the remainder of the market value ($75,000) in my husband's total. That is the piece that I find confusing. The remainder of the home value once equity is subtracted.
    What you are missing is that neither of you "own" the $75000 remaining mortgage. It's a debt. If he's keeping the debt that has to be offset by you keeping an equivalent amount of debt or giving up an asset to offset the debt.

    I think you're way out of line.

    Try this example.

    You keep your 401(k) of 220,000

    He keeps his investment of 100,000
    He gets the house. Equity 91,000.
    His total is 191,000

    Subtract his 191,000 from your 220,000. That leaves you to the good for 29,000.

    He assumes the home debt of $75,000.

    Seems to me that you should be giving him at least the 29,000 toward the 75,000 debt that he is assuming.

    Doesn't matter what kind of rotter he's been in the past. The money split doesn't care about any of that.

    If you can walk away clean with your 401(k) and your car and whatever cash on hand plus your own earnings, you're ahead of the game.

    If you want to spend the next two years fighting over nickels and dimes and paying a lawyer $20,000 be my guest.

  9. #9
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    Default Re: How is Property Divided in a Maine Divorce

    Mr. Knowitall: Thank you for the clarification. I do know that it has nothing to do with the investment accounts. Appreciate your follow up and response.

    Adjusterjack, senior member..... I hesitated at first to post on this site due to some of the rude responses that I saw made to people who are reaching out for information. You are certainly one of those responders. I simply was looking for clarification on something that I was unsure of and thanks to a response by Mr. Knowitall, I now have that clarification. There was no need for your comments of "you are way out of line", "fighting over nickels and dimes" (by the way, did I mention that my husband wants 1/2 of the expense for Walmart frames that he put paintings in that were given to me by my mother over the years.... all 10 of them - worth about 100.00 total......I believe that would be an example of "nickels and dimes"... and I certainly do not need to feel that I should give him something toward the debt that he is assuming by refinancing a home that he has decided he wants to keep...... so enough time spent on you. You certainly appear to be quite a jerk. I hope that you will take a moment and "think" before you spit out any further rude comments to those that reach out with a question looking for clarification or some kind direction.

  10. #10
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    Default Re: How is Property Divided in a Maine Divorce

    Quote Quoting Tymbaa29
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    Mr. Knowitall: Thank you for the clarification. I do know that it has nothing to do with the investment accounts. Appreciate your follow up and response.

    Adjusterjack, senior member..... I hesitated at first to post on this site due to some of the rude responses that I saw made to people who are reaching out for information. You are certainly one of those responders. I simply was looking for clarification on something that I was unsure of and thanks to a response by Mr. Knowitall, I now have that clarification. There was no need for your comments of "you are way out of line", "fighting over nickels and dimes" (by the way, did I mention that my husband wants 1/2 of the expense for Walmart frames that he put paintings in that were given to me by my mother over the years.... all 10 of them - worth about 100.00 total......I believe that would be an example of "nickels and dimes"... and I certainly do not need to feel that I should give him something toward the debt that he is assuming by refinancing a home that he has decided he wants to keep...... so enough time spent on you. You certainly appear to be quite a jerk. I hope that you will take a moment and "think" before you spit out any further rude comments to those that reach out with a question looking for clarification or some kind direction.
    Hon, that was WAY over the top. I happen to think that AdjusterJack's explanation of how it works is clearer than Mr KIA's explanation. However I disagree with him that you should give back 29k to your ex in the division of assets. It would be HALF of 29k to make the two of you equal. Other than that, he told you the same thing that I told you, but with more emphasis on what it would cost you in legal fees to find out that you are in the wrong.

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