In most divorce cases there are very few major assets (houses, cars) that are unencumbered. What this means is that the marital assets usually have liens on them, which will not be removed until the loan for the asset is paid in full. When an older couple gets divorced, this may not always be the case. While it is nice to own things free and clear of any loan, the issue requires careful analysis when property is divided in a divorce.
A couples’ home is usually the single most valuable asset, especially if it has been paid in full. In a gray divorce, which is defined as a divorce among persons over a certain age, the home is often free from a mortgage lien. The marital residence is also usually a piece of property that was acquired during the marriage, and unless it is sold and the profits split other measures must be taken. Some things to consider include:
● Taking out a reverse mortgage, which is a lending tool that allows for equity to be liquidated. Once the equity is in hand, the parties can make a fair split of the home by payment of the funds to one, and an award of the residence to the other.
● Selling the home and making an equitable distribution of the proceeds.
● Allowing one spouse to remain in the home, while giving the other an asset of similar value.
There are several options for handling paid off assets in a divorce, our knowledgeable attorneys will go over your options with you and help you make a decision that works. Not only will we help determine how valuable assets should be divided, but we will also look at how the split impacts your future. Financial stability is always important, but for couples nearing retirement age it is crucial to preserve the nest egg that’s been growing the past several years. Through careful legal planning, we can help you reach a fair financial settlement.
For more information about what to do with lien free assets in a divorce, call us today. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.