Divorce is a leading cause of foreclosure.
Divorce is the probably the biggest financial wrecking ball of all.
The person hurt the worst in a divorce, financially, is the homemaker with the lowest income or the lowest earning potential. Also, the spouse who does not expect and prepare for a divorce can be hurt more than the spouse who starts the proceedings and has time to plan for its consequences.
If children are involved, the court will do what it can to protect their best interests. After the divorce or dissolution papers are filed, the judge issues child support orders. These orders control visitation schedules, health insurance, and child support payments.
Often, the spouse who has the children most of the time cannot afford to make the house payments. The court can order the other spouse to pay more support to keep the children in the family home. It will order a delinquent spouse to make up missed house payments.
A divorce can take over a year to work its way through the courts. A judge can issue emergency orders that require one or both spouses to contribute to the house payment and other expenses.
The spouses in long-term marriages are in essence required to support each other for life, unless there is a remarriage.
In California, if a couple is married for ten years or longer, the marriage is considered a “long-term marriage.” The court, of course, cannot require a spouse to pay more than he or she earns. Both parties can keep enough of their income to live on, but that may not be enough to save the marital home.
In a recent case, a California couple married during the 1950’s and divorced 30 years later. In the 1986 decree, the husband was required to pay his former wife nearly half of his take-home income as spousal support. She moved in with a boyfriend, but didn't remarry. The former husband became ill and his medical bills took a larger part of his budget.
In 2005, he asked the court to modify the spousal support award but the judge refused the request citing the length of the couple’s marriage. The husband’s house eventually foreclosed and he moved to an apartment.
If you are in foreclosure because of the financial fallout from a divorce, you need to take immediate action to get financial support from your spouse.
- Contact your spouse and tell him or her to bring the house payments current or you’re going to see a lawyer.
- Follow through immediately. Contact a lawyer and bring with you all documents relating to your house, including the latest mail you’ve received from them. Your lawyer will seek immediately court orders to protect the house.
- If you think you can’t afford an attorney, realize that in many states, if you can’t pay for an attorney, the court can order your spouse to pay your attorney’s fees. It is possible to do a divorce yourself, especially if your spouse is cooperative. You can buy a "Do-it-Yourself" Divorce Kit
. The kit provides step-by-step instructions. Even if you later decide to use an attorney, the knowledge you gain by working through the book can save you money on attorneys fees. If you don't know an attorney you can present your case for free to a local attorney by contacting by contacting LegalMatch
. You don't pay the attorney anything unless you feel comfortable with them and they are willing to take your case. Legal Match will
- If the divorce is final and the court requires a spouse to pay the mortgage, you can go back to court to enforce the order to pay in the event of nonpayment. If the house is in danger of foreclosure because of the spouses failure to pay, your lawyer may consider asking the court for a temporary injunction against the sale of the house. This step may not be necessary if the lender is reasonable and is aware of the reasons for the default. Keep the lender abreast of the legal steps being taken to get the defaulting ex-spouse to bring the payments current.
- What about taxes? If you learn that you owe taxes that are attributable to your spouse or ex-spouse and you didn't know about the items on the tax return that created the tax (e.g. your ex didn't or wouldn't share his financial situation with you), you may be eligible for "innocent spouse" relief. To learn more visit my companion website TaxAttorneyCa.com.
I think it does make sense. I
I think it does make sense. I think most single parents struggle to finance their homes after their divorce.
Singapore Florist
important insight..
Interesting insight to divorce and how it effects so many different variables. Thanks.
grounds for divorce
foreclosure/ divorce
This is a question.... up until 3 years ago, i was in the real estate business and was making good money. never late and was doing just fine. When money started slowing to less than 20% of my average monthly earnings. I was then put into the foreclosure process. After about 6 months I was able obtain new employment and able come up with overf 12,000 to get out of foreclosure but was given a modification that truly was not to my best interest but it was what the lender said was the best they could do. I agreed because i just wanted to save my home, and moved on.... Then months later my wife left me and the house with my children. and lost her income, i was then put back into the foreclosure process. I was unable to pay the mtg and she moved into a rental of which I paid her first security and 1st months rent together over $2,100. I then was laid off because my company relocated out west. The lender said to fax paper work of my income and unemployment stubs, bk statement etc.. which I did dozens of times. Finally they said they received them again and saidthey wld stop the auction and put me the modification process again. This is all due to my wife leaving and months later my being laid off.. I could not aford the mtg even with my last employment income with out my wifes income.. 3 weeks later I see the auctioneer in the front yard holding the auction. I called the lender and they said they were going to recind and offer and that the modification will still be considered.. 1 week later a realter hired by the lender knocked on my door and said I need to vacate in 30 days.. I called the lender and they said the paper work must not have been processed and i was told because they have notes stating i was told again to send in my paperwork for the modification that they will now expedite the recindication of the offer and I would be fine. the realtor stopped by again a week later and said no that the foreclosure has happened and is now final. I called and the lender said that it was too late to recind and I will need to vacate and I have to leave in 3 weeks. I do not know what to do, I have 3 children who live with me 3-4 days per week and have no place to go.. The realtor said they wld give me 2,000 to leave the property on dec 10th.. I do not want to leave and have no family near by and no money to spend on a lawyer.. What do I do inb the next 3 to 4 weeks..?? my email is cina.tony@yahoo.com if you have good advice..please dont send email solicitations ..
Can Relate....
A good friend of mine recently filed for divorce. Unfortunately, it was all because of financial woes caused from him being laid off. Consequently, the mortgage was behind and they eventually lost their host, so I definitely agree with the post. Mario
Late fees
Can a mortgage company forclose on properties because you owe late fees? The monthly mortgage due gets paid but I'm having difficulty paying so sometimes it gets paid late. The mortgage company has sent an intent to foreclose. I have never heard of such a thing. lowensang 3/24/09
I need help with my situation
I need help! I need to know if I am responsible!Because, If I am divorcing my husband at this time and we own a home together. He decided to foreclose on our home. I am going to ruin my credit too! And am I going to be on bankruptcy if he decided to do so, I am going to be draged into it! Because, my name is on the house.although, I don't live there, he does.I am just waiting for a court order of my divorced process for a pending court hearing appointment.thanks,
the kids
the kids are usually hurt the worst, especially if they are very young. How can a child who is 2 or 3 years old expect to live a normal life. People should be more responsible who they marry.houston apartment
divorce
divorce is one of the most painful and expensive issues that must be dealt with today
i am in favor of a univeral prenuptual agreement before people marry
that way in the event of a divorce the law is laid before them
cut out the lawyers
andrew
bankruptcy/divorce/foreclosure
hi my name is dean, i live in md and my wife and i filed bankruptcy 4 years ago then i filed for divorce a year and a half ago. i had to move out of the house for my safety and well being. so i had to quit paying the house payment 6 months ago because i could not afford to live. now we face foreclosure and she refuses to sell the property and is willing to let the mortgage company take it.we don't go to court till march for the divorce. what can i do to get my house back with out her.if and when it goes to foreclosure can i buy it back?
Divorce is terrible in most
Divorce is terrible in most cases by it's nature, regardless the financial consequences. Sometimes financial purposes are resons for divorce in the first place. I cannot agree with this and I cannot accept it either that's why I think a marriage family counselor would have a very important role in these situations.