QUESTION
How will the division of property go if my father is the co signer of the house?
Asked on Mar 10th, 2014 on Divorce - Idaho
More details to this question:
My wife filed for divorce but my father is the co signer of our house. How will that affect the division of the property? We acquired the house together.
13 ANSWERS
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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The house that you and your wife acquired together will be marital property subject to division either by your agreement with your acts or, in the event you're unable to reach an agreement, by the court. Your father is only secondarily liable as a cosigner and all that means is that if there is a default in the house payment the lender will go to your father for payment. Normally, when someone cosines enotes such as this it doesn't give that person any interest in the collateral unless at some point the cosigner attains a judgment against the primary signer of the note for payments that the cosigner had to make.
Answered on Mar 14th, 2014 at 9:56 AM
Business Litigation Attorney serving Los Angeles, CA
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Gerard A. Fierro & Associates
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If the father is a co-signer but not on title, then either the house would be sold and the proceeds divided according the your respective shares; or one spouse will have to get a refinance loan to take the father off the loan and buyout the other's share.
Answered on Mar 14th, 2014 at 6:04 AM
Edwin K. Niles
A co-signer is nothing more than an extra guarantee that payments will be made; that has nothing to do with title or ownership. The court will decide ownership and division.
Answered on Mar 13th, 2014 at 6:10 PM
Bruce Provda
The division of property is usually the half the equity you both put into the property. Your father just guaranteed the mortgage if I understand you correctly as you both may not have had a good enough credit history to gain the mortgage alone. Unless he has paid anything on the mortgage this should not really make a difference in division.
Answered on Mar 13th, 2014 at 5:51 PM
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The house will be sold and the proceeds distributed or one of you will buy the other out. If your wife buys you out she will have to refinance and then your father will be off the hook.
Answered on Mar 13th, 2014 at 5:48 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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It should not affect it much at all. Your father is obligated under the loan. It has nothing to do with title, necessarily. If your father has made payments, then he would have additional equitable rights that would need to be sorted out.
Answered on Mar 13th, 2014 at 2:51 PM
Dispute Resolution Attorney serving Seattle, WA
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Law Offices of Helene Ellenbogen P.S.
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The amount of interest you and your wife own in the house will be divided. If your father is only a cosigner and never put any money into it, he has no interest. If he did put money into it (and an owner on the warranty deed), the amount he put in would be his and the rest divided between you and your wife.
Answered on Mar 13th, 2014 at 2:48 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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If your father is a part owner of the house that will not change. A portion of the equity in the house will be part of the marital estate that you and your wife divide. If possible, other assets will be used to make up the division of marital property. If not, some sort of buyout will be required. The house may also have to be refinanced to remove your wife from any obligation since she is not likely to want to be a part owner with your father. If your father has no investment in the house then it could be sold or refinanced to remove him as a co-signer.
Answered on Mar 13th, 2014 at 1:28 PM
The fact your father is a co-signer will NOT affect the distribution.
Answered on Mar 13th, 2014 at 12:16 PM
Thomas Edward Gates
The house belongs to each party in equal shares. It does not matter who is a co-signer.
Answered on Mar 13th, 2014 at 11:59 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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As a co-signor he is liable for the debt if you do not pay it, and that will have very little impact on the property distribution. Clearly you are not receiving counsel but need it. Engage an attorney, it is just your future which is at stake.
Answered on Mar 13th, 2014 at 11:48 AM
Being a co-signer of the mortgage is different from being a co-owner of the house. Your father's right would be different if he also is a co-owner of the house. Furthermore, the answer to your question involves too many possibilities. Michigan follows what lawyers call equitable property division rules in deciding a divorce. If you cannot reach a settlement with your ex-wife, what a judge might do with the house and mortgage will depend on what is fair between you and your wife, your children, if any, and what other income earning capacity and assets and debts you both possess.
Answered on Mar 13th, 2014 at 11:38 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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It won't. He will still be obligated on the mortgage.
Answered on Mar 13th, 2014 at 11:16 AM