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Did You Know...
Family Law Software can calculate child support guideline amounts in 21 states.
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Question: How Can I Reflect a Buy-Out of the Home?
Answer: Because the home is such an important asset, we have provided many ways to reflect a "buy out" of the home.
Typically, the mortgage is refinanced, with some of the proceeds going to the spouse who is being bought out.
In that case, you would answer "yes," to the question whether the mortgage is a new, refinancing, or buyout mortgage.
You specify the amount of proceeds that is being kept by one party and the amount that is being used to pay off the bank.
The software automatically calculates the amount of proceeds that are being kept by the other party.
The proceeds that are being kept by the party who is not paying the mortgage are treated as an asset to that party and are automatically added to that party's list of property in the Marital Property Report.
2. Resource allocation.
Often a "buy out" of a home happens by allocating 100% of the home to one spouse, and other resources to the other spouse.
To do that in the software, simply allocate "0%" or "100%" (as appropriate) to indicate which party is keeping the home. Then allocate other assets to the other spouse.
3. Second mortgage.
Sometimes, one spouse takes out a second mortgage, and uses that cash to pay off the other spouse.
You can reflect that by entering a second mortgage that will be paid by the other spouse.
4. Home rental.
If the home is the only significant asset, and the parties do not want to take out a second mortgage, sometimes the spouse who lives in the home will pay rent to the other spouse.
You would enter the rent paid by the paying spouse as a Living Expense, and you would enter the rent received by the recipient spouse as "Non-Wage Income."