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12/04/2023

DOMESTICATING A FOREIGN JUDGMENT

How does a creditor enforce a judgment against a debtor who either relocates to another state, or owns property in another state?

If the judgment is not paid and satisfied, can the creditor follow the judgment-debtor across state lines to pursue their assets?

Most states adopted the Uniform Enforcement of Foreign Judgments Act (UEFJA), which establishes guidelines for accomplishing this task. The UEFJA allows a judgment-creditor to domesticate the foreign judgment (meaning a judgment entered out-of-state), for instance to Nevada where it may be enforced as if it were originally rendered by a Nevada Court. The idea behind domestication is rooted in the Constitutional requirement that judgments should be given "full faith and credit" as between the States.

Why Domestication Should Be Considered

When a judgment is entered in one state court, it acts as a lien on all of the real property owned by the debtor in that county. However, in order to enforce a foreign judgment against a debtor in another state, the judgment must first be domesticated to a county where either the debtor resides or owns property. Without following the strict requirements of the UEFJA, and properly domesticating the foreign judgment, the judgment is nothing more than a piece of paper. Domestication is the process that allows a creditor to attach the judgment as a lien to the debtor's property, and otherwise enforce it.

This article is not intended to give, and should not be relied upon for, legal advice in any particular circumstance or fact situation. No action should be taken in reliance upon the information contained in this article without obtaining the advice of an attorney.

The simple act of domesticating the judgment can act as a show of force to a debtor who thinks they are out of the creditor's reach. By showing the debtor that the creditor is willing to pursue recovery across state-lines, domestication efforts can sometimes be used to force a settlement or satisfaction of the underlying debt.

What is Involved?

The process of domesticating a judgment can seem intimidating. While the UEFJA sets out strict guidelines for judgment-creditors to follow, even a slight mistake can render the judgment unenforceable, and any anticipated lien invalid. First, the judgment-creditor must obtain an "authenticated copy" of the foreign judgment. What is considered "authenticated" can vary from jurisdiction to jurisdiction, but typically require an exemplified or "triple-sealed" copy of the original foreign judgment. Second, the judgment-creditor or its attorney must sign a sworn statement (or affidavit) to certify that the judgment is final, has not been paid or satisfied, and the unpaid balance due on the judgment. Third, the judgment-creditor must file the required paperwork with the Clerk of Court, all of which must then be properly served on the judgment-debtor.

Once the judgment-debtor has been served, they have 30 days to respond and move for relief from the judgment. Generally, the judgment-debtor is limited to attacking the judgment in situations where the judgment was obtained through some extrinsic fraud, or that the judgment has been paid and satisfied.

However, not all judgments are created equal. Only certain judgments can be domesticated under the UEFJA. Enforcing foreign domestic orders (e.g., child support, child custody, domestic violence) are governed by a separate set of rules.

Now What?

Once the debtor has been properly served with the Notice of Foreign Judgment and the 30-day response window closes without a filing, the judgment is considered "final" and enforceable in North Carolina. At that time, the judgment-creditor is free to transcribe (i.e., record) the judgment in any other county where it believes the debtor holds property, or begin the ex*****on process. Judgment ex*****on is the vehicle used to have a Sheriff's Department locate and seize the defendant's assets to satisfy the judgment balance.

PROVING PARENTAL ALIENATION IN CHILD CUSTODY CASESBy Bickford Blado & BotrosDivorce or parental separation is a difficul...
06/07/2023

PROVING PARENTAL ALIENATION IN CHILD CUSTODY CASES
By Bickford Blado & Botros

Divorce or parental separation is a difficult time for any family. Though many families try to work with each other, this isn’t always the case. There are unfortunate situations where one parent attempts to harm the relationship between the child and the other parent. These attempts can be considered parental alienation if the child rejects or estranges themselves from that parent.

Many parents see children pull themselves away emotionally after separation because it’s also difficult for kids. In most cases, it just takes time and understanding. For some parents, however, those bonds don’t heal because of the manipulative tactics of their co-parents. Parental alienation can be minor or severe. It’s essential to understand how that impacts your family and what you can do about it if you’re a parent who suspects your child is being intentionally distanced from you.

Understanding Parental Alienation:-

Parental alienation commonly coincides with divorce and separation, where one parent will create distance between their co-parent and their child. A parent may do this through behavior such as:

-Consistently criticizing the other parent and making negative statements
-Sharing personal information about the other parent with their child
-Creating lies about the other parent
-Refusing to let their child talk to or visit the other parent
-Ignoring custody court orders
-Refusing to negotiate a parenting plan
-Planning activities with their child to interfere with the other parent’s visitation or custody
-Making comparisons between a new partner and the other parent
-Controlling or preventing communication between their child and the other parent
Keeping essential information about their child from the other parent, such as healthcare records or the child’s activities or report card
These behaviors can occur regardless of the gender of either parent. They intend to change the child’s view of the other parent and fear or hate them. These behaviors can occur even if the parents live together or are separated.

Identifying Parental Alienation in Children:

The leading indicators to identify parental alienation include:

-A child refuses or resists a relationship with one parent
--The child and that parent used to have a good relationship
The parent doesn’t seem to be neglectful, abusive, or otherwise a bad parent
-The parent that currently has a good relationship with the child shows signs of alienating them from the other parent.
-The child shows behaviors of parental alienation.

Children can exhibit signs that parental alienation is occurring. It’s important to note these signs if you suspect alienation. iBe aware that these behaviors can also happen without the other parent behaving in a manipulative or alienating way. Potential signs include:

-The child directs unfair criticism to one parent, seemingly with no reason or true evidence.
-The child has only negative feelings about this parent and positive ones about the other parent.
-The child consistently supports the alienator parent.
-The child repeats language, lies, and negative thoughts said by the alienator parent when talking about the alienated parent.
-The child doesn’t feel guilty about their negative treatment or feelings toward the alienated parent.
-The child’s dislike of the alienated parent includes the direct relatives of that parent.

What Can I Do About Parental Alienation?

Evidence of parental alienation could impact decisions about child custody and visitation orders. If you and your co-parent are already separated, evidence of parental alienation could lead to modification of those orders. Proving alienation is hard. You can demonstrate your and your child’s relationship and how it may have changed. You can present evidence such as:

-Parenting time – When an alienated parent tries to manipulate your child against you, they will try to keep you apart or interfere with your custody and visitation. By noting parenting time, you can present it as evidence that you did not have sufficient or court-ordered parenting time.
-Witnesses – A character witness on your behalf can be useful to show what kind of parent you’ve been to your child. They can also help prove that you and your child were close before parental alienation.
-Documents and pictures – You can show that you and your child were close with images or proof of time you’ve spent together.

You may be a fan of Netflix’s Gunther’s Millions, which features the world’s wealthiest dog, a German Shepherd named Gun...
04/28/2023

You may be a fan of Netflix’s Gunther’s Millions, which features the world’s wealthiest dog, a German Shepherd named Gunther. Gunther purportedly inherited his master’s fortune – approximately $350 million US dollars. Unlike in Germany (where Gunther lives), in the United States, pets are considered personal property themselves and cannot inherit assets as if they were a person. However, that does not mean pets in the United States cannot live a life of wealth and comfort upon their owner’s passing.

We love our pets and recognize that pets are an important part of a pet owner’s life. We also believe being a good pet owner involves planning for your pet’s health and wellness, especially when you are not able to manage their care yourself. Many pet owners have friends or relatives who can watch and care for their pets for a few days at a time, or they have a boarding kennel where their pets can stay when they are on vacation.
ESTATE PLANNING FOR YOUR PETS

However, most pet owners have not named a caretaker for their pet or set aside money for their pet’s care in the event of their incapacity or death. Fortunately, you have the ability to draft an estate plan that is as specific as the care you currently provide your pet.

The ultimate goal of an estate plan with pet provisions is to avoid abandonment or surrender of your pets and to provide specific instructions for your pet’s health and wellness when you can no longer care for them yourself. Pet custodian provisions can be included in your will and trust at no additional charge to you. If you draft a Will you can appoint a pet custodian to take care of your pets after you have passed away. Similarly, you can also include a pet trust in your trust to appoint a pet custodian and designate money for your pet’s care in the event of your death or incapacity.

Providing a plan for your pet helps you take control of your pet’s care, and it allows you to provide direction, care, and support to your loved ones for the care of your pet. While your pet may not be able to inherit your estate like Gunther the millionaire dog, you can still take steps today to give your pet the best life they can live after you have passed away. If you are a new client, we will include pet provisions in your documents at no extra cost.

04/18/2023

WHAT IS THE PURPOSE OF AN ADVANCE DIRECTIVE?

by Richard Seff, Estate Planning & Elder Law Attorney

Kevin stares at the door of Winnie's nursing home room with tears streaming down his cheeks. The medical staff just finished inserting a feeding tube into Winnie – an act Kevin knew she didn’t want. Unfortunately, Winnie couldn’t express her wishes due to advanced dementia, and she had no legal documents that expressed her wishes not to be fed by artificial means. Kevin had no choice but to sit back and watch his wife go through a procedure she didn’t want.

The situation with Kevin and Winnie could have been avoided through the use of proper advance directive. An advance directive is actually a collection of documents. What that includes differs depending on your needs and wishes, along with what the law allows. However, it usually means at least a Living Will, and a Power of Attorney for Healthcare.

The purpose of this set of documents is to allow you to control what happens to your health care in case you cannot speak for yourself. If certain criteria are met, your doctors must consult with your advanced directive before making decisions about your care.

Usually, what this means is that two doctors agree that an individual is terminally ill, permanently unconscious, or at the “end-stage” of a condition. Once that happens, and the individual cannot express their preferences, doctors turn to the advance directive to figure out what the individual wants.

A Living Will determines what happens to an individual making it, unlike a Last Will and Testament, which determines what happens to their money and possessions. A Living Will describes what healthcare providers can and cannot do to prolong your life and/or ease your pain when you cannot express those preferences yourself. For example, do you want to be placed on a ventilator if you cannot breathe on your own? Do you want a feeding tube and IVs set up, and if so, for how long? Do you want to be an organ or tissue donor?

A Durable Power of Attorney for Healthcare lets you choose someone to make healthcare decisions for you when you cannot. They still must follow your Living Will, but they will be able to make decisions not explicitly considered by your Living Will, in accordance with the facts of the situation. In most states, there are “default surrogate consent laws” which allow family members to make treatment decisions on your behalf, but who is chosen to make these decisions and what they choose to do may not be in accordance with your wishes, as it hopefully would be with a Durable Power of Attorney.

Other documents may be part of an advance directive by law, or they may be worth including on your own volition. These include Do Not Resuscitate orders and Physician Orders for Life-Sustaining Treatment, among others. You might also consider an advance directive in case of a mental health crisis.

This is a difficult subject to consider, and it always seems like it won’t be necessary. But nearly 70 percent of Americans don’t have plans in place for a worst-case scenario, which means for some of them, decisions may be made for them with which they would not agree if they had the capacity to choose. For that reason, it is worth thinking about implementing an advance directive even if it seems unnecessary now.

Helpful Tips Regarding Texting with your Spouse in a DivorceTexting has become for many of us, a fast and easy way to co...
04/10/2023

Helpful Tips Regarding Texting with your Spouse in a Divorce

Texting has become for many of us, a fast and easy way to communicate. However, when you are going through a divorce, it is important to rethink about texting your soon to be ex. In the past, I have addressed this issue, but I think it is important to designate a blog to specifically address texting and how it can impact your separation/divorce.

Did you know that the court recognizes text messages as admissible evidence? The judge’s final decision regarding alimony, custody, distribution of debts and assets, etc. may be influenced by texts that have been presented as evidence. You must be careful what you put in either an email or a text, or it may come back to haunt you. On the same note, while it might be tempting to post a snarky comment regarding your spouse on social media, such as instagram or facebook, don’t do it. Your spouse could use these posts against you in your divorce trial.

Below are some tips regarding texting with your spouse.
Texting is a fast way to respond to someone, but think carefully before you fire off a response to your spouse or ex if you are angry or frustrated. Resist the urge, and put your phone down for a while until you get your emotions in check. Easier said than done, but try to calm yourself. Try breathing exercises, or even better yet leave your phone behind and take a walk. Nothing positive will come from attacking your spouse via text. Remind yourself before hitting the send button, is this a text I would be comfortable having a judge read?

If your spouse is texting you rude or angry texts, remember you don’t have to respond.
However, it is a good idea to save the texts and print them off to show your attorney. If you don’t know how to do this, call your cell phone provider so they can help you save or tell you how to print off messages. You might be able to use these threatening or hurtful messages in court. Not responding to them will also show that you are trying to be reasonable and not engage in negative interaction.

Of course, the children are your priority and you have to mindful of how negative texts will affect them. If you are hoping to win custody of your children, remember you must exhibit that you are acting in the best interests of your child or children at all times. If the judge feels you are acting out of anger and frustration through negative posts or texts, he or she could take that into consideration when deciding parenting time.

Do use texting when confirming information about children’s schedules
Don’t rely totally on texting, but it can be helpful when used in a constructive way. Making sure you are both aware of children’s needs, such as making sure they have the right school or sports equipment, or that your spouse is clear on pick up or drop off times, etc. Use texting as a positive tool, before and after the divorce can be a helpful way to communicate.

04/04/2023

IS YOUR SPOUSE HIDING ASSETS?????

Jamal Barknuckle
April 3, 2023

Many divorcing couples struggle with the asset division process. While California and other states have laws designed to make the process as equitable as possible, it still may not feel fair. When you’re already emotional about your split, the thought of having to give up some of your property to your soon-to-be ex-spouse can be upsetting.

Despite this, it’s important to be honest in your financial disclosures. Not only is hiding assets immoral, but it’s also against the law. Trying to conceal marital assets so they aren’t considered for division violates your spouse’s rights to their share of the marital estate.

But what if your spouse hides assets anyway? That can permanently affect your future finances and make it significantly harder to get back to normal life after your divorce. If you suspect your spouse is hiding assets, you have every right to hold them accountable. Here’s how to spot if your partner may be concealing financial information and how to make sure you receive your fair share of your communal property.

Signs Your Spouse May Be Hiding Assets
Even though you’re ending your marriage, you still know your spouse. If you feel they may be hiding money or property from you, listen to that suspicion. Start looking for warning signs that they are trying to conceal something from you. If you notice any of the following behaviors, it’s time to dig deeper into your finances.

1. Acting Defensive or Secretive About Money
It’s normal for divorcing spouses to argue about finances. However, there’s a difference between arguing and acting overly defensive. If your spouse seems to overreact or gets angry or evasive whenever you talk about money, they may have something to hide.

Similarly, if they’re doing things that make it harder for you to understand your financial situation, that’s a red flag. Common behaviors by people who are trying to cover their financial tracks include:

Deleting accounting software: If you usually use accounting software to manage your finances and your spouse deletes it or closes the account during your divorce, that’s a bad sign. They may be trying to make it harder for you to spot how they’re moving money around.
“Losing” records: If you keep hard copies of things like paystubs and tax records, ensure they don’t get “lost.” Your partner might try to dispose of these records to make it harder to identify your marital assets.
Claiming payments are “late”: Some unscrupulous people will have paychecks or bonuses deposited in different accounts or held by their employers and claim they’re late, so they don’t get included in the marital estate.
Saying assets were “stolen”: If high-value tangible assets like jewelry, electronics, or collectibles suddenly get stolen during your divorce, your spouse might be hiding them to keep them for themselves.
2. Changing Account Details
In most states, it’s illegal to try to hide assets to keep them out of the divorce proceedings. That’s why some states like California implement automatic temporary restraining orders (ATROs) that prevent spouses from making significant changes to their financial situation during a divorce. Critically, ATROs bar either of you from making changes to your financial accounts.

This doesn’t always stop people from making these changes anyway. Changing band or investment account details is a critical sign that your spouse is trying to keep assets away from you. You must take immediate action if you notice your spouse has changed account addresses, beneficiaries, or passwords. These modifications can make it harder for you to access the accounts and the funds within them. It can also prevent you from noticing that your spouse has withdrawn money or made other critical changes.

You should also pay attention if your spouse attempts to open new accounts during your divorce for themselves or your minor children. ATROs bar the creation of new accounts to prevent the transfer of funds that should be part of the marital estate.

3. Spending More Than Usual
Some signs that your spouse is trying to hide money are less blatant. They may be more subtle and use increased spending to hide how they’re transferring assets away from your joint accounts. Examples of spending patterns to watch for include:

Sudden withdrawals: If your partner makes unexpected withdrawals from your accounts without a good reason, they may be depositing those funds in a separate tab or buying tangible assets to store elsewhere and keep for themselves.
Unexpected gifts: Some people attempt to hide marital assets by using them to buy expensive gifts for friends and family. Should your partner start giving unexpectedly generous gifts, they may have a deal where the recipients will compensate them for the “gifts” after your divorce is final, so the assets aren’t considered in your split.
Loan payments: Suddenly overpaying taxes, credit cards, or loans may signify that your spouse is trying to reduce their debts post-divorce. Similarly, if they’re suddenly making payments on loans you didn’t know about from your marital accounts, they could be siphoning money into separate accounts of which you’re unaware.
4. Announcing Sudden Business Changes
If your partner owns a business, this opens up new methods to obscure the marital assets in your relationship. Appraising a business correctly is a complex task, and changes to the company can make it even more complicated. Your partner may be trying to use the industry to avoid dividing marital assets if you notice any of the following:

Suddenly starting a new business: New businesses are notoriously difficult to fairly evaluate. Your spouse may use the new venture to conceal assets and disguise their overall net worth.
Reconfiguring the business: Similarly, if your spouse reconfigures the company for no apparent reason, they may be trying to obscure its value and prevent you from receiving your fair share of the profits.
Unusual expenses: Your partner might try to siphon assets away from your estate by inventing business expenses and waiting until after the divorce is final to have them reimbursed from the company.
Sudden decline in performance: Your spouse may purposefully hamstring their business for a few months to make it look like the company is worth significantly less than its actual value to reduce the marital assets you can request in exchange.
What to Do If Your Spouse Is Hiding Assets
If you notice your spouse doing anything listed above, you should seriously consider the idea that they’re trying to hide assets. That’s when it’s time to get professional help. Discussing the situation with your divorce attorney and a forensic accountant is in your best interest.

Your lawyer will help you determine your legal rights regarding different assets. They can also help you take legal action to prevent your spouse from siphoning away any more of your joint property. Meanwhile, the forensic accountant will investigate all assets involved in your marriage so you know exactly what should be considered marital property. Expert help can make all the difference to your split. To learn more about how to protect your assets in California and ensure your spouse isn’t hiding anything, schedule a consultation with an experienced divorce attorney.

03/28/2023

Are Mothers Favored in the Child Custody Process?
Fernandez and Karney

For divorcing spouses with children, child custody is almost always the most hotly contentious issues, even more than child support, spousal support, and property division. No parent relishes the idea of an impartial judge deciding how much time than can spend with their own children. But for fathers, common misconceptions and outdated ideas may intensify this fear. For decades, courts commonly presumed that children were best served by staying with their mothers after a divorce, but today, most states have done away with using that perception when deciding on matters of child custody.

Today the courts aim to not give preferential treatment to the mother—or to the father. Today’s standard is to rule in the best interests of the child when deciding on child custody.

Is Nevada a 50/50 State for Child Custody?

While Nevada is a state where joint legal custody is a common outcome for divorced parents, the courts do not mandate a 50/50 split. Instead, the courts adhere to the goal of acting in the best interests of a child, which may not always be a 50/50 split, especially if one parent works long hours or travels extensively. Instead, Nevada considers many relevant factors to make decisions on the physical and legal custody of children.

- The emotional bond between each parent and the child
- The amount of caretaking time each parent devotes to the child
- The location of each parent’s residence to the child’s school and to each other
- Any history of criminality, abuse, or addiction for each parent

The courts have broad discretion in deciding on child custody by adhering to the standard of deciding in the best interests of the child.

Legal and Physical Child Custody in Nevada

In Nevada, the courts encourage parents to meet to try to settle the issue of child custody on their own through a custody and parenting time agreement that suits them both. When parents are able to communicate and compromise, they are often in the best position to decide what’s best for their children. Any agreement must address both legal and physical custody of the children. Legal custody is the right to make important decisions for a child including:

Medical decisions
Educational decisions
Religious decisions
Decisions on extracurricular activities

Physical custody addresses which parent the child predominantly resides with or the framework put in place for children to share time residing with each parent.

If parents can’t come to a mutually acceptable child custody arrangement, the court must step in to decide for them.

Options for Child Custody in California

While every case is unique and California family court judges carefully consider the individual circumstances of every case to decide in the best interests of the child, they typically begin by examining four common custody options:

- Joint full custody to both parents
- Sole full custody to one parent with visitation by the other
- Physical custody with one parent and legal custody to the other
- One parent with physical custody and legal custody while the other has joint legal custody

03/22/2023

Who Gets the House in Divorce?

Jonathan James | September 29, 2021

this is a question I get hit with regularly. Lots of concerned voices. Actually–while the divorce is anything but simple–the house and requisite who/what/when/where does not have to be complicated. That said, pitfalls do exist when divvying up the domicile.
Generally speaking, outside of a 401K, a couple’s home is often their largest asset. Therefore, care must be taken with what might feel in the moment like minutiae. Put another way, it is absolutely okay—preferable even—if your divorce attorney is a bit nitpicky or skeptical. That’s what you are paying for, and it could save you enormously.
So, someone has filed and divorce is underway. What, regarding the living arrangements and allocation of the family home, should take place? What are the choices?
The Options:

1.Sell the house, divide the proceeds in a certain percentage;
2.One spouse keeps the house and buys the other out of the value/equity;
3.Same as number two, only switch spouses;
4.Co-ownership after divorce.

Seemingly straightforward, there are nuances to these options; clients can get broadsided by failing to address the specifics—so clear attention must be paid to the fine print.

Choice One: The Sell

Let’s imagine a couple decides to sell the house and split the proceeds. Easy, right? Not necessarily. Below are a few questions that may need to be answered first:
1. When will the house be listed for sale?
2. Is the couple waiting on the end of a school year or a child to graduate from high school?
3. Who lives in the house until it sells?
4. Who pays the mortgage and continuing bills?
5. Who picks the realtor?
6. Who decides list price, and keeps the house sparkling for potential buyers?
7. Who pays for necessary repairs?
8. Who decides whether or not to accept that counteroffer received from the buyer after the home inspection?
9. What if the house doesn’t sell as quickly as anticipated?

A dizzying array of scenarios can transpire within the selling of a home, particularly in the current market. If details are not plainly set forth in the decree, parties could end up spending much more money down the road sorting out a mess. For example, the spouse NOT living in the home might get an ex too comfy on the couch and on his or her own timetable; there’s not a whole lot the spouse existing elsewhere can do but become impatient and resentful.

Written stipulations must address as many variables as possible, which means the couple (and lawyers) must initially brainstorm the right questions. Then set out the answers clearly, for example, “If the house doesn’t sell in X months, the court will appoint someone to sell the property and divide the proceeds evenly among the parties.” That might persuade the spouse still living in the home to get motivated to sell.

Choice Two/Three: The Buyout

Say the house is of major sentimental value to one or both of the parties, who decide not to sell. Or kids live in the house and would prefer not to, in addition to acquiring divorced parents, shoulder the move to a new house and/or school on top of their forever altered family landscape. Or, as is becoming more common in this real estate market with skyrocketing home prices, a spouse would not be able to afford a comparable house if they were to sell their current house.
Determining the value of the house becomes a primary consideration when one spouse is going to keep the house and use other assets (or cash through a refinance or home equity line of credit) to buy out the other spouse. Value is easy to determine when you are selling a house—it is what a buyer is willing to pay for it when you list it on the market; however, when valuing a home without being listed on the market, it can become a much more subjective and fluid concept, even when certified appraisers and realtors are consulted. Further, with a family home, emotions often are entrenched. Dismantling a family’s history can be messy, daunting, and painful. Given the circumstances, selling the house might be the best-case scenario, but even for divorcing couples, relinquishing the house where plans, children, and hopes were born is complicated.
This may be why, in my anecdotal experience, both spouses more often than not want to keep the house, regardless of who ultimately owns and lives there. Divorce is a unique condition. At times, a key decision does not square financially, but makes sense to the heart of the family—keeping the house is often one of those choices—which is fine, provided caution is employed to answer the ‘what ifs’, in writing, which ensures each party receives assets of equitable value—or what they agree to be equitable—and in a timely manner.
Choice Four: Co-Ownership

There are rare circumstances where divorcing spouses agree to continue to co-own the marital residence after divorce. The circumstances are even rarer when it is recommended to do so. Perhaps the parties need to continue to own the property for a certain amount of time to avoid realizing a costly short-term capital gain. Maybe the parties have children at the end of their high school career and want to co-own the house until the children graduate from high school.
Our goal as family law attorneys is to assist our clients in putting together a property division settlement that is unambiguous, enforceable, minimizes the potential of future conflict between the parties, and reduces the risk of future litigation. Having ex-spouses continue to co-own a single, illiquid asset can put these goals to the test. In those rare instances where co-ownership is the best option, it is important for the spouses to work with their family lawyers, and potentially real estate lawyers, to address the multitude of potential issues in great detail to avoid ending up in a courthouse battle down the road. Everything from the payment of the mortgage, repairs, maintenance, improvements, and taxes down to the if, when, and how to sell when the time comes needs to be considered and addressed.
Precautions

What else can be done in dealing with the house to safeguard against either party feeling bamboozled?
Think of Murphy’s Law: “if anything can go wrong, it will.” Drafting agreements that clearly address the obligations of both parties for the what-if scenarios can feel onerous on the front end, but can save time, money, and heartache in the long run.
Agree, in writing, to a home appraisal at the outset. A realtor can also provide a market value by looking at relevant comps in your neighborhood with a simple search, which many realtors are happy to do for free when they are likely to land your business.

Beginning the process with a realistic number—whether the house is sold or one spouse continues to live there—provides certainty, a baseline from which to create a plan with the rest of the assets that both parties can optimally live with. It is also paramount to consider all of a couple’s resources in settlement negotiations, to recognize that keeping the house might be important enough to one spouse that he or she is willing to give the other a much higher percentage of the 401K or some other community property asset.

If a couple has good home equity and decides, for example, the husband will remain in the home, it might make good sense to consider a cash-out refinance, which an agreed-upon part of can go straight to the wife as part of the settlement. In that example, wife can be granted a lien on the house to secure the amount owed to her, and that lien would be released once the cash-out refinance is complete.

Upshot

There are as many potential settlements as there are divorces, decrees, and ex-spouses. At the end of the day, all that needs to occur for a settlement is a mutual agreement. With large ticket items like a family home, couples can create inventive settlements that serve the best interest of both parties (and their children, when applicable).

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