Posts Tagged ‘real estate in divorce’

I haven’t blogged about the circumstances involved in my pending divorce in some time (or ever maybe?). Here’s one component.

My wife and I have been debating for some time what to do with the investment property we own. I am an executive in a large real estate company so I have some experience in these matters, but it is impossible to predict the future market. We have a tenant in the house that wants to stay for another year and the real estate market in the city where it is located is not good. (Yes, there are areas where the market is good and, my gosh, if I didn’t already have two properties, I’d be buying now!) The loan has reset and the payment went up fifty percent. While we have equity in the house, I cannot afford a vacancy while the property sits on the market for sale.

So, we’ve decided to keep it. There are other good reasons for keeping it. It is near transportation corridors, commuter rail and should be impacted positively by the base realignment and closure process.

I am trying to get a refinance through and so far, so good. It will raise my payment a little bit, and I will lose some money every month. However, I will not have to deal with selling what may end up a vacant house in a tough market.

My wife and I have agreed that I will make up any difference between what is due monthly and what the tenant pays monthly and that should prevent her from requesting spousal support (alimony).

As long as the appraisal holds, very soon this issue will be off my plate for several years and I am looking forward to that. My hope is the market will improve and we will make some money through appreciation and then sell in a few years when the market is good.

Although my crystal ball is foggy, I am hoping this is all the right decision. I figure that worst case, I can move back into that house when the tenant moves and buy my wife out if I need to. We plan to put the house we share on the market for sale in the Spring. She moves back near her family in late June. Lots of stuff ahead 🙂

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