- Download Latest Version
- Request KeyCode
- Training Videos
- User Guides
- Tech Support
- Free Webinar Training
- Download Court Forms
- Modify Professional Listing
- Renew Subscription
Did You Know...
Family Law Software can calculate child support guideline amounts in 21 states.
|Search all help content:||
Question: How Can I Specify That Parties are Sharing the Cost of the Mortgage?
Answer: You have two alternative ways to specify that the parties are sharing the cost of the mortgage.
1. Via Payment Designated as Spousal Support.
If one party is going to physically write the check, and the other party is going to give the first party cash to do so, you could perhaps specify that the payment of cash to do so is spousal support.
(You might also footnote the spousal support to indicate that all or a portion is being used to pay the mortgage.)
Typically, there will be net tax benefits to the parties from treating the arrangement that way.
Also, the tax law is unclear whether the "out spouse" is entitled to a mortgage interest deduction.
This approach eliminates that issue from consideration.
2. Entering Two Mortgages.
If you do not want to treat payments as alimony, and if there is only one mortgage, you could enter the one mortgage as if there were two mortgages.
In each mortgage, the balance and monthly payment would be half of the total.
Then you would specify that one party is paying the first mortgage and the other party is paying the second mortgage.
If the residence has two mortgages, one of which is being split, you might do the following:
Create a second residence which has no value, but has two mortgages.
The reason that you do not enter any value for the second residence is to avoid double counting.
The software will then show the second mortgage payments as being made 50% by each party.