Buying home as part of divorce settlement……good idea or not?

[simonbart]

My question is basically….”Is it a good decision for me to purchase my home as part of my divorce settlement”.

I really love my current bungalow located in the SDSU collage area.

I would assume that since the real-estate market has plummeted in the last couple of years, the value of my residense has dropped from about 650K to about 490K. It has a seperate detached guest-house so that props up the value a little bit and can provide for a bit of additional income since I’m close to SDSU.
I would need to get a 30yr mortgage for 300K, giving me about 190K in equity.

I would think that if ever there was a time to buy out my ex as part of the settlement….this will be it. I would basically be a cash buyer purchasing a home I already know inside-out and love…..at hopefully a good price (good price is the question).

The risks for me are that the housing market will continue to drop…..or I lose my job (IT related in BioTech).

Any thoughts on this????

[HLS]

Sorry about your personal situation.

From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for

It already sounds like your net cost of living there is going to be way less than renting elsewhere, regardless of what you owe.

[HLS]

Sorry about your personal situation.

From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for

It already sounds like your net cost of living there is going to be way less than renting elsewhere, regardless of what you owe.

[HLS]

Sorry about your personal situation.

From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for

It already sounds like your net cost of living there is going to be way less than renting elsewhere, regardless of what you owe.

[HLS]

Sorry about your personal situation.

From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for

It already sounds like your net cost of living there is going to be way less than renting elsewhere, regardless of what you owe.

[HLS]

Sorry about your personal situation.

From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for

It already sounds like your net cost of living there is going to be way less than renting elsewhere, regardless of what you owe.

[sdrealtor]

If you do, consider that you will be paying off your spouse with tax free dollars while inheriting the entire capital gain issue downstream (i.e. only 250K exclusion instead of 500K). The best advice I would give you is to get a professional appraisal done to set the value. Specifically, I would get an appriaser who specializes in divorce related appraisals. I would recommend Jerry Longwell out of La Mesa. This is all he does and you can Google him to get his number.

The value will likely be lower than what you think which isto your benefit. Most of the Family Law Attorney’s in SD know and use him so you should not have a problem getting your spouse’s attorney to accept him.

Good Luck

Lil sdr

[sdrealtor]

If you do, consider that you will be paying off your spouse with tax free dollars while inheriting the entire capital gain issue downstream (i.e. only 250K exclusion instead of 500K). The best advice I would give you is to get a professional appraisal done to set the value. Specifically, I would get an appriaser who specializes in divorce related appraisals. I would recommend Jerry Longwell out of La Mesa. This is all he does and you can Google him to get his number.

The value will likely be lower than what you think which isto your benefit. Most of the Family Law Attorney’s in SD know and use him so you should not have a problem getting your spouse’s attorney to accept him.

Good Luck

Lil sdr

[sdrealtor]

If you do, consider that you will be paying off your spouse with tax free dollars while inheriting the entire capital gain issue downstream (i.e. only 250K exclusion instead of 500K). The best advice I would give you is to get a professional appraisal done to set the value. Specifically, I would get an appriaser who specializes in divorce related appraisals. I would recommend Jerry Longwell out of La Mesa. This is all he does and you can Google him to get his number.

The value will likely be lower than what you think which isto your benefit. Most of the Family Law Attorney’s in SD know and use him so you should not have a problem getting your spouse’s attorney to accept him.

Good Luck

Lil sdr

[sdrealtor]

If you do, consider that you will be paying off your spouse with tax free dollars while inheriting the entire capital gain issue downstream (i.e. only 250K exclusion instead of 500K). The best advice I would give you is to get a professional appraisal done to set the value. Specifically, I would get an appriaser who specializes in divorce related appraisals. I would recommend Jerry Longwell out of La Mesa. This is all he does and you can Google him to get his number.

The value will likely be lower than what you think which isto your benefit. Most of the Family Law Attorney’s in SD know and use him so you should not have a problem getting your spouse’s attorney to accept him.

Good Luck

Lil sdr

[sdrealtor]

If you do, consider that you will be paying off your spouse with tax free dollars while inheriting the entire capital gain issue downstream (i.e. only 250K exclusion instead of 500K). The best advice I would give you is to get a professional appraisal done to set the value. Specifically, I would get an appriaser who specializes in divorce related appraisals. I would recommend Jerry Longwell out of La Mesa. This is all he does and you can Google him to get his number.

The value will likely be lower than what you think which isto your benefit. Most of the Family Law Attorney’s in SD know and use him so you should not have a problem getting your spouse’s attorney to accept him.

Good Luck

Lil sdr

[simonbart]

[quote=HLS]
From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for
[/quote]

a) Paid 307K in 2000
b) Currently owe 200K
c) 15yr fixed at 4.85% (about 9yrs remaining)
d) Guesthouse gets $650 month. I have no children so can rent out one of the bedrooms to a room-mate for $650 month also.
e) I have no idea of my creditscore or qualification amount.

I can’t afford to continue with the current 15yr mortgage and also buy her out of her portion….which will be about an additional 100K. I will probably need to refinance to a 30yr fixed for 300K if I want to keep the house.

My thinking is that later on when I get a second income again (I just turned 40)…..it will be easy.

[simonbart]

[quote=HLS]
From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for
[/quote]

a) Paid 307K in 2000
b) Currently owe 200K
c) 15yr fixed at 4.85% (about 9yrs remaining)
d) Guesthouse gets $650 month. I have no children so can rent out one of the bedrooms to a room-mate for $650 month also.
e) I have no idea of my creditscore or qualification amount.

I can’t afford to continue with the current 15yr mortgage and also buy her out of her portion….which will be about an additional 100K. I will probably need to refinance to a 30yr fixed for 300K if I want to keep the house.

My thinking is that later on when I get a second income again (I just turned 40)…..it will be easy.

[simonbart]

[quote=HLS]
From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for
[/quote]

a) Paid 307K in 2000
b) Currently owe 200K
c) 15yr fixed at 4.85% (about 9yrs remaining)
d) Guesthouse gets $650 month. I have no children so can rent out one of the bedrooms to a room-mate for $650 month also.
e) I have no idea of my creditscore or qualification amount.

I can’t afford to continue with the current 15yr mortgage and also buy her out of her portion….which will be about an additional 100K. I will probably need to refinance to a 30yr fixed for 300K if I want to keep the house.

My thinking is that later on when I get a second income again (I just turned 40)…..it will be easy.

[simonbart]

[quote=HLS]
From a business standpoint:
a) How much did you originally pay
b) How much do you currently owe
c) What is the rate on your current loan and is it fixed
d) How much income can you get from the guest unit
e) Do you know your credit score or what you qualify for
[/quote]

a) Paid 307K in 2000
b) Currently owe 200K
c) 15yr fixed at 4.85% (about 9yrs remaining)
d) Guesthouse gets $650 month. I have no children so can rent out one of the bedrooms to a room-mate for $650 month also.
e) I have no idea of my creditscore or qualification amount.

I can’t afford to continue with the current 15yr mortgage and also buy her out of her portion….which will be about an additional 100K. I will probably need to refinance to a 30yr fixed for 300K if I want to keep the house.

My thinking is that later on when I get a second income again (I just turned 40)…..it will be easy.

[Author]

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