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Lien Advice Divorce
I’m going through a divorce and my to be ex-husband has a lien on the property. He cleared out his 401k last Oct/ Nov and had his parents buy a property in their name.

They closed escrow on the property in Jan of this year. They did this together secretly and I was unaware the whole time.

I did know the money was withdrawn as it was deposited in a joint account that I had stopped using and by coincidence logged in and saw the deposit.

He admitted he took the money out but never told me what it was for, only that he would never do anything harmful.

I’m not sure how it was possible for him to remove the funds from his 401k without my consent. 401k was from a full-time job that he said he was let go from.

We had no agreement even though he has insisted that we did in exchange for me keeping the house with the lien (I would’ve never agreed to this).

He said it was an in-person discussion which is not true.

He told me I needed to begin paying the mortgage on our home starting Feb of this year. I paid from March to July and it has not been paid since.

He has not given any support during this transition. Moved out in July and started having the kids half the time in Aug.

He was the primary breadwinner. I made decent income but would just about be scraping to pay the bare minimums. We have 3 minor children.

I requested that he grant permission for me to speak with the mortgage company and he refuses. I requested a joint call and he has not complied.

He is on the mortgage only but we are both on the deed.

The mortgage is $3,100 which is lower than rent where we are however he tends to be spiteful and vindictive if he feels you are not doing what he wants.

My worry in staying in the home is I’ll be subjected to whatever mood he’s in and I’ll be paying on a home with a lien that can only be removed via a bankruptcy filing.

There is about $250k in equity in the home which to be honest knowing him he would most likely still try to take some if he can figure out a way.

I don’t expect him to be forthright with his income. He is self employed so I’m operating as if there will be little if any support from him.

This has been emotionally draining and I’m really overwhelmed and unsure what my next steps should be. I really don’t have the funds to afford legal expenses.

I have been applying for a second job but nothing has materialized as yet.

1. Stay in the home and keep paying the mortgage. Lower than rent in the area

2. Go into foreclosure and hope he doesn’t do anything shady and allows me to keep the funds. I wouldn’t be able to buy as I don’t make enough to afford a home where we live.

Monthly rent would be around $4,000 for a smaller place which I don’t mind downsizing.

[Shereen]

Why would you think that your approval is needed for him to take funds from HIS 401k?

Was this after divorce was filed?

[Vera]

Have you sought legal advice? These are too big decisions to make on your own, with significant repercussions for your and the kids’ futures.

Please seek legal advice ASAP.

Good luck-this is a very stressful situation…

[Miesha]

A judge would give you the house and make him pay the 401k funds that he took out without your permission.

Him even putting the property in his parents name without you signing off is illegal.

What state are you in?

[Joyce]

YOU NEED A LAWYER!!!! He is going to bury you in debt and is playing a game above your grade level.

A lawyer will be able to claw some of that back and the fees will be part of the settlement.

A 30 min consultation should be free. Please, please, please call a lawyer.

Your future self will thank you.

[Chrissy]

Please get an excellent forensic accountant to track down all of his shady financial history.

This will make a huge difference in the success of your case.

Don’t let him intimidate you.

[Charlene]

This is something to discuss with your divorce lawyer. You also don’t say how much the lien is on the property.

I personally wouldn’t keep the house with the husband still on the deed.

He still owns half the house as long as his name is on the deed.

[Shereen]

IF funds were used from your “joint account” for his new secret property… it seems that you could claim ownership or equity of it in the divorce?

[Natalie]

You definitely need the help of professional to sort this out. Your husband sounds shady.

His name is on the mortgage, and it’s probably ok to keep it like that while you start divorce proceedings… but you won’t be able to keep it that way.

If you have to refinance into your own name, you’ll likely have a much higher interest rate.

Do you know if your mortgage is assumable? Would you qualify on your own?

[Angela]

What is the nature of the lien and who incurred it? I think I read elsewhere that it is related to restitution. Is this on your record, his record, or both?

This may affect how the proceeds of the future homes sale are divided between you.

In the meantime I would consider the fact that you currently have housing for less than you can rent on your own, so I would stay put and keep track of the payments you’re making to the mortgage (and pay directly to the mortgage versus to him, also retaining proof).

This will also impact how the proceeds are divided.

[John]

Even if you are completely cash broke, you absolutely need an attorney. Sounds like there is plenty of money somewhere in the assets to pay the attorney eventually.

Call around and tell them your cash and asset situation.

That’s where you start.

[Tong]

Smh, a lot of women’s retirement plan, nowadays, seems to be divorce. I hope you get nothing.

Go find a job! Make your own money, I’m sure you’re strong and independent.

[Amy]

You are not on the loan, so you wouldn’t be responsible to pay any money, it’s good you are on the deed, maybe sell the house so you can make sure you get your 125k minus real estate fees and what is owed on the house.

Since he is the only person on loan, not sure why he has a lien on the house. So sorry you are going through this.

[Jenn]

You need a real divorce to enforce your rights. You should have a custody agreement.

You are prob entitled to child support even with shared custody.

[Stephanie]

Breathe, this sounds very hard. I’m sorry. And you have options.
1)household equity
2) rent the property?

3) you could also consider a short term, rental, of some of the rooms or the whole house.

You must live in a major metro, considering your rental option pricing at 4K.

4) what is your mortgage rate?

5) you could sell quick for cash or on the MLS.

I could help with either, but I strongly recommend you try to keep your house (depending on the mortgage rate) And if it’s outside some thing you can afford, rent it.

Do NOT go into foreclosure.

I am in a women’s investing and have an ask out on the lien position.

[Crystal]

Make sure to mention to the lawyer that the 401k was put in a joint account and then he did the shady stuff with the parents buying a propterty.

You might still have access to part of that money in the divorce.

[Kiristen]

Please seek the advice of counsel. If you cannot afford a lawyer on your own, check to see if you have a legal plan through your company benefits. Also, sometimes EAP may offer some services as well.

I believe you’re in a better position than you think being on the deed vs the mortgage, but again you will need to seek legal advice to confirm and to help you with a plan to move forward to ensure your position for future ownership.

[Shereen]

IF the house goes into foreclosure…, what funds are you hoping that he will “allow you to keep?”

[Ludmila]

Get at least mediator lawyer. He will help to divide equally. For example you can use part of your 401k to buy out the house.

[Sharon]

Talk to a divorce attorney. How much is the lien? Can you pay off the lien? Call the mortgage company.

With your name on the deed, take out a HELOC (home loan) for the amount of the lien and other expenses, consider finding another place less expensive to live in a nearby location.

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