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Divorce Financial Planning/Investment Article

Shah & Kishore's team of Divorce Lawyers, Divorce Attorneys, Family Lawyers, Child Custody Lawyers and Child Support Lawyers serve the Maryland, Rockville and surrounding areas.

This article was reprinted with permission from Divorce Magazine. We hope you enjoy this insightful divorce article.

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Divorce Liens on the Family Home

By Lorelei Stevens

If you are getting a divorce, or know someone who is getting a divorce, you will find it helpful to know about divorce liens.

A divorce lien can avoid the usual turmoil of selling the house and splitting the money -- the home often being a divorcing couple's largest single asset.

With a divorce lien, one party keeps the house, and the other gets a note and deed of trust (or mortgage) secured by the property. One gets real estate and the other gets paper.

In this arrangement, the spouse who keeps the home (often the wife) has the same familiar environment for herself and the children. The children don't have to change schools. There are no divorce relocation costs. She retains a fair share of the equity and hopes that the price of the home goes up. She has the obligation to pay the departing spouse according to an agreed-upon schedule.

The departing spouse (often the husband) signs a deed to the house over to the wife, and in return gets a note and a deed of trust secured by the home -- a divorce lien. The departing spouse can hold the note until it pays off, or he can sell it for cash. If the departing spouse has no need for immediate cash, he can accept a payoff -- in many cases, in about five years -- or when the youngest child is eighteen. If the departing spouse does need immediate cash, he can sell the note and, ordinarily, receive tax-free money. This provides funding for new living quarters, help in paying attorney fees, child support, and a new start in life. If he sells the note, this financial connection to the house ends.

This win-win scenario can ease the pain of a divorce to a small degree. However, a divorce lien is not for every case. The divorcing couple's situation must meet some guidelines. First, the family must have substantial equity in their home. Second, the spouse who retains the home must be able to afford property maintenance and the payments on the first mortgage -- a divorce lien is usually a second mortgage. Since a divorce lien also requires a certain minimum of cooperation between the divorcing spouses, you will recognize at the outset that some divorcing couples may not agree to this approach. When it is possible, it gives benefits to both parties that would not otherwise be available.

To read the rest of this article, go to www.wallstreetbrokers.com/homelien.htm.It's not my fault!

Lorelei Stevens is the president of Wall Street Brokers, Inc., a Seattle firm which has been buying divorce liens for over 30 years.

To read the rest of this article, go to www.wallstreetbrokers.com/homelien.htm.

MARYLAND DIVORCE ARTICLES - MAY 2008

1. Happily single
2. Grieving and healing after profound loss
3. Stepping off the roller coaster
4. Splitting
5. Divorce liens on the family home
6. Stress busters

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Shah and Kishore Maryland (MD) Divorce Law Firm focuses on family law, marriage separation, child support, child custody, pre-nuptial agreements, division of property and domestic violence cases. Shah and Kishore attorney (attorneys) Legal Services serve in the Montgomery County Prince Georges (P.G.) PG County Frederick County Howard County Anne Arundel County and surrounding areas including Darnestown Urbana North Potomac Potomac Germantown Clarksburg Damascus Bethesda Poolesville Langley Park Silver Spring Aspen Hill Burtonsville Olney Mt. Rainer Adelphia Hyattsville Takoma Park Cheverly Clinton Riverdale Greenbelt Bowie Upper Marlboro Capital Heights District Heights Columbia Clarksville La Plata Mt. Airy Frederick New Market Crofton Ellicott City Glen Burnie Randallstown Odenton Annapolis Severn Gaithersburg La Plata Waldorf Seat Pleasant Baltimore City

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