How do we divide the house if the debt is higher than the value?

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How do we divide the house if the debt is higher than the value?

We don’t have many assets to split up. Mostly we just have debt. I am wanting to take the debt of the house so I can keep from upsetting my children’s lives. I can pay the mortgages and will be paying all of the other expenses. My wife believes because her name is on the deed, she is entitled to half of any money the house might bring after the divorce. She does not pay any portion of the mortgages or expenses now and I am not sure when or if the house will ever be worth what is owed. How would this be handled?

Asked on August 20, 2012 under Family Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

In a marital dissolution action where you have an item such as your home which is worth less than what you owe on it, one takes an agreed price based upon fair market value and subtracts the amount owed on the home where the result is a negative number. From there you divide the negative number in half as to the amount each spouse is obligated on the home.


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