What happens with items such as car leases and loans or mortgages in a divorce settlement?
I am looking into divorcing my husband. We live in Michigan and have two children. We also hold to auto leases and two mortgages with both names on everything. What happens to these financial issues during the divorce? Also, how is the property settlements assigned, i.e. who would get the house?
The mortgages total more than house value...
Abstract Reviews
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
If your names are on all the properties then it would be divided. the House would likely be sold and all equity attained would be divided between both of you
It depends on whose name is on them. Everything that both names are on is supposed to be split, but the woman always ends up with more…..or shall I say most of the time.
My advice: sell the house BEFORE you file for divorce because you cannot sell until after the divorce is final once you file.
With cars, one person buys the other out or you sell it or you do what’s called a “transfter of equity” from one person to another so the car is in thier name and the owner makes the payments on each car that they own. Only some lenders offer this. I know Toyota does.
In general everything is split 50/50.
In your average divorce (where both sides get lawyers) property gets divided by the courts. A judge decides who gets what. Usually the one who gets custody of the children also gets the house, but that’s not a hard-and-fast rule. Cars are usually divided up according to who uses them. So, in conclusion, the financial issues are decided by the judge.
If it’s a dissolution style divorce (no lawyers involved, and it’s a lot cheaper) both parties must decide for themselves what they want to do, and a judge just reviews it to make sure it’s fair.