In terms of divorce, the State of Connecticut is often referred to as an all property equitable distribution state. \u00a0This designation means that the Court presiding over a divorce has the power to assign, to either spouse, any portion of the property of the parties, as there is no statutory exemption for the separate property of either spouse. In divorce lingo Connecticut is also considered a no-fault divorce state. A state which allows no-fault divorce does not require either spouse to demonstrate wrong-doing by the other spouse in order to file for a divorce.<\/p>\n
Despite the fact that fault need not be proven to file for divorce in Connecticut, it can still play a crucial role in the distribution of marital property and allocation of financial assistance under Conn. Gen. Stat. Section 46b-81. Factors considered by the court include:<\/p>\n
So, inquiring minds may ask, where in this complex equation does the current economic situation fit in, including the realities of foreclosure and short sale? In most divorces the marital home is the family\u2019s most valuable asset. Usually upon divorce, couples are faced with several options in the apportionment of the marital home.\u00a0 These options often include sale and division of the proceeds, the purchase-out by one spouse of the other spouse\u2019s equity in the home, or maintenance of the current status-quo by allowing one spouse to remain in the marital home in the case of existing juvenile children of the marriage. Oftentimes, in today\u2019s economy, these options are severely hindered by the financial status of the divorcing couple.<\/p>\n
Due to declining home values, many couples are left with properties valued at less than what is owed on the mortgage. This frequently results in an inability to sell the property and the question of what steps should be taken in division of the marital assets. In addition to the problem of selling the marital home, many divorcing couples also face the prospect of foreclosure as income is diverted away from the home to other separate ventures. For both the couples facing the problem of dwindling home values and those starring at the face of foreclosure, a short sale may offer the best solution and compromise for all involved.<\/p>\n
A short sale is the sale of real estate in which the sale proceeds equal less than the amount owed towards the mortgage or mortgages on the property. A short sale requires that the lender, or holder of the lien on the marital property, agree to a discounted or reduced repayment of the loan. Frequently, in today\u2019s fiscal climate, lenders will approve the discounted repayment based on the financial hardship of the borrower, as a loss mitigation mechanism. For couples considering short sale as a solution to their economic woes, it is important that they act quickly, as the short sale process is often long and burdensome.<\/p>\n
The first step in initiating a short sale is to contact the couple\u2019s lender and explain the problematic financial position. Next, the couple should seek the assistance of a qualified realtor experienced in short sale and foreclosure situations to list and market the property to potential buyers. During these first two steps, it is also wise to seek out the assistance of a real estate attorney who may guide you through the often complex and frustrating short-sale process. \u00a0A qualified attorney will be able to provide answers to all of your questions regarding the short-sale process, as well as review your agreement with the lender and realtor in order to ensure that all potential ramifications of the short sale are accounted for. Important considerations may include tax consequences, credit score and reporting activities on behalf of the lender, and the potential for a deficiency judgment (an amount that may be owed to the lender representing the difference between the loan balance and the proceeds of a short sale). It is important to have a knowledgeable and qualified attorney protect the interests of all parties involved in a short sale as well as to advise on the potential pros and cons of the transaction.<\/p>\n
Please stay tuned for Part 2 of this Article- Splitting After a Split: Divorce and the Consequences of a Short Sale. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" In terms of divorce, the State of Connecticut is often referred to as an all property equitable distribution state. \u00a0This designation means that the Court presiding over a divorce has the power to assign, to either spouse, any portion of the property of the parties, as there is no statutory exemption for the separate property […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-218869","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/218869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=218869"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/218869\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=218869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=218869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=218869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}