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  1. #1
    Join Date
    Jun 2009
    Location
    California
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    Default How is Negative Equity in Home Handled in Divorce

    Ordinarily, if there is positive equity in the home, then that amount of equity is divided evenly if the house is sold. However, if one spouse wishes to keep the home and live in it, then he or she buys out the other spouse's share of the equity and can then become the rightful sole owner. So far so good.

    1. What happens when the equity is negative by several hundred thousand dollars, how is this debt handled in division of property?

    2. If one spouse wishes to keep the home and live in it and continue to make the mortgage payments, can he or she force the other to pay off their share of the "negative equity" debt so that he or she can become the rightful sole owner without further encumbering or obligating the other, but with the total debt reduced by half?

    3.
    I suppose a corollary question is can one spouse force the other to let the home go into foreclosure when the other doesn't want to?

    I would like to keep the property to live in and continue to make the mortgage payments, but my spouse would like to walk away scot-free while I bear the entire burden and obligation for this debt.

    4. If a spouse whose name is on the loan moves out, will he or she still be liable for half the mortgage payments?

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