Full question:
My ex-husband is living in the community home and wants to refinance it in order to pay miscellaneous bills. Ultimately he wants to take my name off the loan; although, he still owes me $50K in equity. However, he cannot afford to pay me $50K until the appraised value goes back up. How should I request or have Deeds worded to protect my equity if something should happen or disable him to repay this loan? Could I file a lien for my $50K or have a special document attached and filed when the house gain it's value, I get my money? His position is that the bank may not let me be on the deed considering I am not on the loan. To your knowledge is this true? I bought this home when I was single before we got married and did not force a sale when we divorced due to downturn of value. What I need is security to protect my equity for me and my estate if I should die as well. How can I protect myself and my investment? The home deed I am referencing is in San Diego CA; I now live in Colorado. My ex-husband resides in the San Diego home.
- Category: Divorce
- Subcategory: Property Settlements
- Date:
- State: California
Answer:
Your situation largely depends on whether your divorce decree specifies your equity in the home. It's advisable to contact the bank to understand their requirements for removing your name from the deed, as they may want you to waive any claims to community property rights before refinancing.
Typically, lenders prefer that anyone on the deed also be on the loan. If you are not on the loan, the bank might require you to relinquish your rights to the property, which could complicate your ability to claim your equity in the future.
To protect your $50K equity, consider filing a lien against the property. This lien would secure your interest and ensure you are compensated when the property value increases. However, the specifics of how this lien should be structured should be discussed with a local attorney familiar with California property law.
Joint tenancy and tenancy in common are two forms of property ownership that could affect your rights. Joint tenancy allows the surviving owner to inherit the property automatically, while tenancy in common does not have this right of survivorship. Each type has implications for your estate planning and how your equity is treated upon your death.
In summary, consult with a local attorney to explore your options for securing your equity and to ensure your interests are protected in the event of your ex-husband's inability to repay the loan.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.