Does she get to walk away without being liable for mortgage since I never added her to the deed or mortgage. Its a big debt and she did contribute to the mortgage while we lived there together.
You have to look at what's equitable distribution. You speak of liability for the mortgage. What about the proceeds of the sale? Is there equity in the property or does the value of the mortgage exceed the value of the property? Usually, she might be entitled to the appreciation in the value of the property, but the recent drop in property values means that there is possibly no appreciation anyway, just liability for the mortgage. If that's the case, the mortgage debt, or a portion of it, might be part of the overall settlement.
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