How can I figure equity in our home to buy my husband out of the house? Are sales expenses and commission taken into account?


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Equity House Expenses Commission Divorce Law

How can I figure equity in our home to buy my husband out of the house? Are sales expenses and commission taken into account?

The first step is to get the currently appraised value of the house by a qualified residential real estate appraiser less the mortgage and any other liens on it. That’s the equity in the house.

Now if you sold the house, both of you would share the commissions and sales expenses. You’d get 1/2 of the balance, after commissions. If you want to buy it from him, it probably is a negotiation issue. While you’d try buy it at 1/2 the equity less all of the sales commissions, likely fix up costs, and taxes that have to be paid until the sale, the other side would say if you want to buy it, there is no sales commission and no fix up expense involved, so why should you get a discount?

A reasonable compromise is 1/2 the equity less 1/2 of what the normal sales commissions would be and 1/2 of what the essential fix up would be.

You’d also want to get a low appraisal and he would want a high appraisal, and as all appraisals are really just estimates (only an actual sale would give the exact price), that may be the hardest part. Some folks agree on a single appraiser, others each select one and split the difference or have the 2 select a 3rd.

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What other collection remedies are available?


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Collection Child Support

What other collection remedies are available?

The following are other alternative courses of action:

Government: Many states have empowered local government agencies (such as the Office of District Attorney) to collect child support for an obligee parent. Under law, the local agency may (or must) take action to collect outstanding child support arrearage. Resources, such as parent locator services, and a staff of attorneys/clerks, are available to local agencies to assist in collecting court ordered child support.

Tax refund intercepts: Local agencies have the authority to follow a procedure to “intercept” federal or state tax refunds which otherwise would be paid to the obligor parent. Also, local agencies can provide information about child support arrearage to consumer credit reporting agencies who are then required include such information in the agency’s report. Although local child support enforcement agencies can be slow, because of the additional resources available to them, their assistance should be requested as part of the overall effort to collect a child support arrearage.

Real estate liens: A “judgment lien” based on child support arrearage can be recorded against real estate owned by the obligor parent in the county in which the property is located. When such a lien is recorded, the real property becomes security for the payment of the judgment. A judgment lien for child support is then paid from the proceeds of the sale when the property is sold. A judgment lien against real property should be established whenever an obligor parent owns real property that has an equity value (that is, the amount of all outstanding liens, including mortgages, is less than the fair market value of the property).

Civil contempt of court: A more complex proceeding is an action for contempt. Since payment of child support is a direct order by a court to pay, failure to pay is treated as a contempt of a court order. In this proceeding, which is quasi-criminal in nature, the obligee parent must prove to the court that the obligor parent had the income from which support could have been paid. Although a contempt proceeding is complex, it certain to gain the attention of the obligor parent.

Since collection of child support can be difficult, professional assistance is often needed. Child support judgments can easily reach many thousands of dollars a year, and the cost of professional assistance is justified, since those who are familiar with collection procedures often obtain favorable results.

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Who gets paid first in a business bankruptcy?

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Who gets paid first in a business bankruptcy?

The order in which payments are made is fixed by Federal statute. The general rule is that the persons who take the least risk are paid first.

First priority usually goes to persons who become creditors AFTER the company files for bankruptcy. The purpose of this is to enable the company to continue its operations and/or to effectively wind down its affairs.

Secured creditors, such as a bank lending money backed by a mortgage on real estate, typically bargained for taking less risk. Assets of the company usually back the credit that they extend. They know they should get paid very early on the list if the company declares bankruptcy.

General creditors, such as suppliers of goods and services, and other lenders and bondholders, have a greater potential for recovering their losses than stockholders, because bonds represent the debt of the company and the company has agreed to pay bondholders interest and to return their principal.

Stockholders own the company, and take greater risk. They could make more money if the company does well, but they could lose money if the company does poorly. The owners are last in line to be repaid if the company fails. Bankruptcy laws determine the order of payment.

Unsecured creditors are last in line.

(Reviewed 11.10.08)

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Bankruptcy Exemption Definitions

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Bankruptcy Exemption Definitions

Equity: Some exemptions cover a limited amount of ownership interest in the property. For example, a state may allow an exemption for $1,200 equity in a motor vehicle. If you have a car with a blue book value of $8,000 and you still owe $5,000 on your car loan, your equity in the car is $3,000. The bankruptcy trustee could sell your car, give you your $1,200 exemption and use the rest of the $3,000 to pay your creditors. If your residence is a motor home currently worth $90,000, but you owe $80,000, your equity is $10,000 and you only need that amount in homestead exemptions to keep the mobile home.
Value: To determine equity you have to know the value of the property. For purposes of bankruptcy this is the resale value of the property in the current market, not the replacement or purchase value. To value real property you have a real estate agent look at recent sales of similar property in your area. You look at the blue book value of motor vehicles. For used equipment, appliances, household goods, and so on, you can determine the value by looking at similar items on Craigslist, E-Bay, at thrift stores, and flea markets. It’s your responsibility to do this research.
Homestead: A homestead exemption concerns property that you are using for your residence at the time you file for bankruptcy. The definition of what is included within this exemption varies somewhat from state to state and in the federal exemptions, but it can include land, buildings on land, a motor home, a mobile home, a boat, a co-op apartment, or condominium.
Wildcards: Several states have created a “wildcard.” This is an exemption that you can apply to any property. For example, if you own a car in Vermont worth $9,000 and the exemption for motor vehicles is $2,500, you can use the $7,000 the state allows as a wildcard to make up the difference. You can also use a wildcard to exempt property that isn’t listed as exempt, such as a painting. The value of the wildcard is different according to which state you live in.
Click here to read an Introduction to Bankruptcy Exemptions.

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What is Intellectual Property?

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What is Intellectual Property?

In contrast to real estate and physical property, Intellectual Property refers to what the minds of men and women have created.

Intellectual Property Law includes the fields of law governing Copyrights, Patents, Trademarks and Trade Secrets. (Click for an informative article that gives an excellent overview of what constitutes intellectual property law.) Because Communications Law and Computer Law and Internet Law are so heavily intertwined with Intellectual Property issues, we are including those topics in this Practice Area as well.

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