Sign New Hampshire Banking Separation Agreement Simple

Industry sign banking new hampshire separation agreement simple

wing was recorded in front of a live studio audience at the studio this is the United welcome to easy honey [Music] because we are welcome to another edition of easy money New England today on our show we have Michael Rice actually Mike Rice the mortgage guy but in the business since 2003 then when you fed in mortgage since you know seven years now and today's subject we're talking about is divorce now sometimes it smells go divorce it's cheaper to keeper or it's uh you know it's you know why is it so expensive because it's worth it I mean we all hear funny things about the Bulls but really when he gets down to it's a very serious item especially when you have marital property together or you know things are gonna change and Mike rice actually is a certified divorce lending specialist and Mike welcome to the show thanks for having me Brian great to be here so Mike what made you want to get in you know what made you want to get certified is it divorce lending specialists well in the mortgage industry a large majority of transactions are coming out of the divorce market so the reason I wanted to get involved in it was to learn more about it and understand it because it's not just the mortgage aspect of it there's so many other aspects involved and often times you really need a team together so that when you're going through the process divorce right decisions are being made by all people involved and not just talking the husband and the wife and the family you know I'm talking about you know having someone that understands it from the real estate aspect if you're selling the house from a CPA aspect there's so many tax consequences that are involved you know where's that going to change if this new tax bill goes through I have no idea but under the current guidelines in taxes it really makes all the difference you know what you can write off you know what the exemptions are based on the real estate so having a good you know certified you know mortgage mortgage originator so mike is the mortgage originator and and it's very important to even have that part of it oh absolutely absolutely a minute it's just it takes a whole team the attorney you need everybody talking to each other to make sure that it's in everybody's best interest when you go to do something whether it's refinance the house sell the house and it's just having everybody understand that you know it's not your typical transaction if you're selling the house because of the fact that you could make a decision that's gonna cost you a lot of money in taxes now so it's there's other fact that it's just not as nice and easy within a sell the house and be done with it there's too many other factors involved that's why you want to have everybody it's not just myself it's having attorneys involved it's your divorce attorney you know your financial planner your CPA so it's having everybody on the team to understand it you know that it it's when the transaction happens you're not getting whacked with a huge tax and we all know people that have you know I'm sure you have some friends that have been divorced I know I have plenty of friends that have been divorced and it's you know there's always questions around okay how did you do this and how to do that you know what I don't think people realize is it's 2.4 million divorces every year in America I mean that's 40 6532 per month 6646 per day in one every 13 seconds yeah so base and that's just a New England I think that's that a hole so basically you know since we started the shoulders Bravo 37 divorces in the seventh house now in yeah you could talk go the funny part of it but when it gets down to financing it there's nothing funny about it I mean think about it if you build the house and you have you know kids and family and you know you built this whole life together and you got to figure it out you definitely gotta figure out so so now number one is really get a good divorce attorney absolutely you want to have a divorce attorney you want I mean everybody said you get a good divorce attorney and researching up that bull dog of one that you know so that's the thing you got to have yourself a good divorce attorney but they also oftentimes you know I haven't gone through a divorce thank God yeah my wife's listening sorry honey but it's oftentimes it becomes a very emotional thing and people just want to get to an end and that end you could be making some decisions basically that can can significantly impact right so whatever is over the years we both see many divorce decrees separation agreements and you know sometimes they decide that they're gonna sell the house sometimes someone stays on the housing is responsible for the mortgage and sometimes you know it's a forced to refinance it out so it skips out of the person's name off that mortgage so I've seen that all different ways where yeah it says that you're not responsible for the mortgage anymore but it's still on your credit report and you know does that well if it's written directly into the divorce decree you know there's so many different factors in ways which can happen in that situation where you know it's still on your credit report so if you go and you know if if your spouse decides to you know screw you basically and not not make the mortgage payment that can affect things so you know that in that situation you know first thing is protection when I say protection it means you need to you know from day one that you're if you're out of the house you need to be you don't want to communicate it could be a bad situation but this is where the breakdown usually hurts the most it's it impacts the credit because everybody shuts down the inside well how would that I'm not gonna pay the mortgage well you have to make sure you keep because otherwise it's affecting both your credits and down the road it's going to impact what you can do whether you can refinance whether you can buy your spouse out whether you can sell and buy a new house that's where the number one thing I see happen in divorces is someone decides to not pay the bills I also see that people kind of run up the credit cards towards the end because they may or may not be on it so you might be in a bad credit situation before this even happens absolutely so that's that's the thing is you if you know you know if a friend comes to me and says hey listen I'm getting divorced the first thing I'd say is congratulations no kidding ah but the first thing I do is I'd be like listen uh if I were you I would you know go to a like a credit car more right now all of your credit cards are offering free credit records get your credit report so you know what you have because there's stuff on there that if your wife or or spouse you know whoever it is is an authorized user on it you need to get them off because then they could still charge up all right we see that app and people get bitter they charge stuff up so that's what some people and very nicely and it's work so very nicely yes absolutely happens all the time I got you know a lot of people like that yeah it doesn't it stats off that ways it tapes so yeah so credits off obviously a major point factor when you're going through this process because you know getting a mortgage but a lot a lot of mortgage people don't realize or mortgage like people don't know is if this is divorce situation there's different ways of pricing in that loan but you get a better rate versus for absolutely that's one of the biggest mistakes that loan officers make when when doing something like this is they'll treat it as a cash out refinance so if you know if I'm selling and you know I have to buy my wife now if I have to buy my wife out for example if it's written into the contract that it's an equity bio then it's considered an equity bio you don't face the typical Fannie Mae pricing it's that you would and where because then it would be considered a cash out once you go cash out your rate higher and it's affected so it's very important that it's written in there that it's an equity buyout situation so that it keeps us away from you know the cash out transaction you're limited on the cash out transaction equity by oh you have more leeway but that is the number one mistake loan officers make I find that they don't even understand that you know there's an equity by owed is not a cash buyout yep and it's all about having the contract it goes back to the attorney and having a contract drafted correctly all right well that's a sounds like a pretty heavy heavy subject let's take a word from our sponsors and we'll come right back right after words it's Brian D'Amico owner of new Fed mortgage and I'm really excited to introduce fast-track mortgage our new online system that gets you approved in less than fifteen minutes whether it's a refinance or a new purchase just go to new Fed comm anytime day or night and click on the fast-track mortgage button fill out the form and within 15 minutes we'll approve your loan at the lowest rate possible don't waste time dealing with big banks we're local and here to help you close your loan fast just go to new Fed comm 24/7 and get approved in less than 15 minutes fast-track from you Fed mortgage now that's a new way to get the loan you need [Music] or back using stone gotcha all right thank you very much do so yeah so back back to our subject divorces and you know again very serious subject even though we all have our jokes you know 47% either sell or refinance the marital home so and I'm hearing numbers anywhere from 55 percent divorce right now versus five to sixty fifty by the circle and I've heard that's insane right so I'm hearing uh you know usually ever hear about bachelor parties mayhem but divorce parties hear all this stuff so it's very common in our industry because you know when stuff like this happens there's always some type of transaction that's gonna have to give you a refinance and someone's gonna buy it off each other or they're gonna sell the house and becomes a real estate seal yeah so so you know what's some of the advice you can give them you know I know we talked about you know getting the right team together you know so if you're a divorce attorney out there and you have clients that are looking for a real specialty advice when it comes to mortgages and refinancing look no further than Mike rice the mortgage guy I mean you don't just do divorce cases but you also originate oh I originate in purchases refinances and everything and divorce is just a you know a small piece of what I do but you know with the divorce you know we're you know 55 60 % you know is what we're looking after the divorce rate the biggest thing the biggest mare typically speaking the biggest biggest marital asset is the house and it's also the ones that it becomes the most personable because people you know if one spouse is leaving and they want they need some place to live the other spouse wants to stay in the house and if this kids involved that you know they don't want to disrupt the kids that divorce is disrupting everything as much as it is so you know that this you know comes down to okay what do we do with the house typically speaking this you know three ways to divide you know to divide the house you know yeah you can sell the house and divide the profits nice and easy yeah you can you know one buys the other out which is what we often see and then you know Bo stay on the deed and then you sell later down the road if in that case you were both staying on the deed you got to make sure the name is being made oftentimes you know down the road I see that you know someone goes they say yep we're finally selling and then I'm gonna buy a new property and use the prop the proceeds from the sale finally and I call their credit nope you know you missed your payment you know I have two or three times I have one now that you know it's a gentleman and you know he's still on the credit report and it would became a short sale because she she stopped making the payments and because she stopped making the payments it went to foreclosure and they end up doing a short sale so they sold the house for short you know not they sold the house for less money than what they owed and he had no control over that you know I mean he had a little control because I have a feeling positive but I think he's about 99% true is that he wasn't making his child support payments so you know this is also I mean you still still some obligations that you have from the child support the alimony in whoever's keeping the house it's very important to keep that date card absolutely and that's why you know I officer I often say you know I recently had a client and the husband's staying in the house and that's fine but the the wife is the one that was on the note he wasn't originally on the note but he's responsible for the mortgage and my suggestion right to her was is he paid you every month and you make the payment yeah because it once you find out if it'll be too late by the time you find out that a payments been missed because oftentimes you don't find out you might get it might get a phone call might get something but you often don't realize that a payments been missed and you know a 30-day late on a mortgage payment you're probably looking at a hundred points drop in your credit score and everything is credit score you know and it's definitely going to impact your ability to you know purchase or refinance so if I'm driving right now you know driving down the street listen to this podcast I'm saving myself there's a good chance I'm getting divorced in if I'm in the middle of this what are some of the pitfalls that you could just say just avoid right away like just you know a lot of times people just do it themselves they just go to the court and they get it stamped in and they're good right but yeah I mean you can just go I mean amicable we hear that there is a percentage of another that everything starts out in we were then at the end of this because you know but at the end of the day it's one of the bigger financial transaction if you can end up making not just the house aside but you're splitting assets you're splitting you know he's splitting the house you know like I said go back to the first thing I would do is you know keep get your house in order and when I say get your house in order like I said you know find out you know what what credit cards you know yeah if you're leaving your significant other than you know get your own credit report there's so many you know freecreditreport.com Credit Karma and then you know as well as all the other stuff that you have any credit card you have access to your to your credit report you know go out there be proactive about it well yeah you get a copy of your credit equip see what's on there see what cards you have what your balances are and then also see which cards that you're an authorized user on because if I have a card you're an authorized user you know we get an argument you can go run that card up or authorized to do so but you're on the other person is the one that's on the liability to do it so the first thing I would say is get the credit report the other thing is down the road it gives you a snapshot of okay this is where I am today so if we say okay there's five thousand on the credit card you don't do anything and next thing you know your spouse runs up another ten on it that's gonna come into play down the road that's when you know amical goes out the window I also see that you know when you have a separation agreement or divorce decree that says that someone's responsible for that payment if it just says they're responsible do you have to prove that that was paid so say they have to go back to the husband or their wife and say hey look I have to prove that you were making these payments because it's on my credit report yeah typically it's go back twelve months to prove that they paid it yeah twelve months is typical thing there are some specialty guidelines you know if it's on a credit report I believe I want to say it's six months that if you could show that the divorce decree or separation agreements in place and that they're liable for it in some sort circumstances they'll go and they'll say okay well six months right because if this person is not liable we see that a lot so I mean you know obviously you already stressed enough as it is going through a divorce to make it easy if you call Mike rice the mortgage guys all over the Internet my grace the mortgage guy at least he'll make the mortgage part of the easy of all you strip more stress-free because there there are a lot of mortgage originators out there that just don't understand this part of the transaction so talk about a little bit Mike you know how how much did you learn by becoming a certified divorce living specialist that you did you did you see a lot of case studies did you see a lot of things that really said I all right this is this is something I really need to dive deeper into there was in the process there was a lot of case studies done and there's so much aspect behind it you know a lot of it you know seems pretty common-sense but you know it's just learning okay well having the proper team in place you know is the biggest thing because you just want to make sure everybody's communicating so that a bad decision isn't made and a bad decision could be something that's written into the contract you know divorce attorneys you know they're doing that job but they're not they're not financial planners or they're not tax advisers you know so you really need to have you know four or five people that are technically involved in the transaction because of the fact that you know I'm not an attorney so I'm not gonna say oh I wouldn't do that or I wouldn't do this you know well I don't want your tax implication you know what I don't know because it's so convoluted so having the team in place and getting the answers and that's one of the things that I learned is putting some people around me that understand it and are willing to work in that team environments that it's it's everybody's making the right decision at the end of the day that doesn't you know impact the client you know you could see you know fifty thousand dollar tax bill yeah that because it just wasn't written in the right way oh you don't know because you know you get into capital gains you don't know how long people have lived in the property for you know you know divorce attorneys asking all these questions I don't know my asking all questions I tried to but right I'm asking the questions I need in order to transact alone but you gotta just everybody's working together it just you're covering all your bases makes a lot of sense to have a team in place because you know a lot of times you see that you know one person might have a great attorney one person that's not and you can kind of see that based on the separation agreement how it was structured oh absolutely the separation I mean I've seen so many separations over 15 years have been in business and it's it makes you cynical after a while reading so many separation agreements yeah there's a lot of a lot of stuff you know I mean I you know I just had a girl come to me and you know she had told me about seven or eight months ago that they were getting divorced and she was gonna do something I said okay you know this is what you need to do went through everything she followed all the steps and then we we got down to it and what tronic she did something she sold her house and she have trying to buy a new house and that's great it's like but the way in which the husband was paying the child support cash - yeah that doesn't count it doesn't help it's like right you know we need stuff and I thought I had explained it to her and she said I did but you know they shared a checking account and this one was amicable which is great but the problem that you run into is that what they thought would they were doing the right thing wasn't the right thing because now all of a sudden go to qualifier we need that thousand dollars I'm on the child support to help her buy her new house for the family and it just didn't she can't because of the fact that the the husband the way in which he paid her he was handing her cash or he was just depositing some extra money into their joint checking account right so the rule of thumb on child support payments for alimony is six months six months you need to show six month proofs approved in a perfect world it would be what the separation agreement says see that check going into your account every month no I mean that makes it very simple - I just get that condition right off cadet one absolutely that's the thing is you want to see six months so we need to see six months in this situation you know she didn't so now she started in August but if it's cash and you can see that it kind of makes sense you know you could probably make a story around it but a lot of times you know they get the cash they meant you know say it's a thousand dollars they might put 200 in the bag keep the 800 then it makes it impossible that's the thing is everything needs to be tracked and that's the problem unthe they will put $900 and cola back on it probably make a case for that because the show consistency but uh you know you definitely want to have a paper trail everything that you do when it comes to alimony child support cuz you want nine times out of ten you gonna need that income to fall right and oftentimes people don't realize that they want they start the divorce process and they want to sell the house in the middle of it or one buy the other one Oh once it's in the court you know we have to wait for everything's completed you know we can't just you know the court knows we you know we we check records and stuff and they see the proceedings in place yeah you know so it's you're gonna do it ahead of time or even have to wait to the divorces 100% complete but if the divorce is to complete is there a time frame where they already started these payments or did they wait till the divorce is complete well the payments can be in this situation this girl the payments they were in they were in a separation agreement separation so the separations before the divorce they they had hammered everything how then you know then anyway because you're waiting in Massachusetts for example I think you wait 90 days for it to be final to be final I've seen the boss go yet yeah well that's 99 he's amicable but uh but that yeah I mean I've seen I have a couple of buddies you know businesses and stuff and you're talking I've seen go year year-and-a-half yeah just long and drawn-out at the end of the day they'll all tell you the same thing who wins the attorney the attorney the War of the Roses right that was exactly like that that was there the roses but yet no fascinating topic because it is common it's more and more common every day you know you should you know you should definitely look at it when when it when it does happen to you there's 60 percent tonight so I mean obviously you want to make sure that you have a team in place so all right so we talked about the booze what about you know is there any specialty when it comes to you know when you first say I'm on the other part of this I'm just getting married well you just get married and you want to buy a house no specialty there right it's not really uh it's just your comment forward mortgage it's a common forward mortgage but you know you know an example young couple comes to me yep Michael we're getting married okay we're buying a house together but we're not married yet we're buying a house together we're gonna get married in three or four years I actually have something like this very similar the the fiance is bringing a lot of money for the closing table you know it's the person you love I get it but it's still you have to protect yourself and the thing is is by having some sort of agreement up front I would recommend because if you're bringing a lot of equity to the house you know you're bringing a hundred thousand the other person is bringing nothing but gonna help pay the bills you want that outlined yeah because you know sixty percent chance down the road you know I don't know what it is you know what what the percentage is from you know people that engage that don't get married you should say I was just that we had a meeting with a president of podcast before before like a couple weeks ago and at least jewel is down in writing mats and he was telling me that he sells quite a bit of engagement rings but he also buys quite a bit of engagement rings coming on the other side cuz people come to him all the time so I take this ring he's like well I could make it a pendant no I don't want any part of it just buy it on and he's seeing a lot more of that so I mean you know it's important because engagements do break off your biggest find it yeah you're purchasing a house you know it's the biggest asset they probably gonna purchase in lifetime it you know it just goes into you know hey it's an uncomfortable conversation but if you're bringing a lot of money into it you need to have that discussion on what happens if if we do break up what's the equity split right and a lot of people don't take that extra step and then down the road it's like okay you have you know what's brought into the marriage what's what's fair what's that you know how you distribute things so it's all stuff that you know I'm sure it's done easy conversation to have but it isn't it's almost like you know imagine you know you say I need a prenuptial agreement no no prenuptial you know people are I don't you know well it's getting divorced before we get married right nothing happy about a divorce so you agree and all the agony between things that but you know down the road you know you get you gotta protect your assets well that's it you have to protect protect your assets none you know the other part of it is you know when we so you know we move forward you and your fiance buying a house you won't have a conversation with the attorney on how you want to hold title the Laois because that makes a difference as well no but what's what's the difference when your whole title you know there's joint tenants joint tenants is joint tenants with rights of survivorship you know so a tenancy in common I mean it's right now if you're not married and one of us passes it depends on how you have it you could have it set up so that the other person gets everything in the house or you know maybe you're if you have children or maybe you have your parents know you know your next of kin is the one that typically is going to get that part of the asset unless you have it set up so that okay it's you know rights of survivorship so basically the first one dies everything goes the remaining spouse you bring up a good point because if you want to buy a home can you buy you know have your child as a beneficiary would you buy it as a into a trust you can always put it in a thrust absolutely I mean that that's once again that goes into until anyway talk to your attorney talk to your attorney I see various persons every person situation is different but I see a lot of people putting homes into trust well I mean you see a lot of people putting homes into real estate trust and that's you know that a lot of that gets into as you get older it was to protect any assets that you know if you have to go into a nursing home or something is protecting the asset right so in eight you're buying something you should always have to protect the asset you know you have a 40 year old guy is he really worried about look back the urge for Medicaid down the road by putting in a trust probably not but you know at some point but the other thing is these guidelines change all the time but I ask you to just be a three-year I believe there are five year look-back now yeah for Medicare so there's so many factors involved that's why it's it's not just talking to a mortgage person it's going the extra step ins getting the answers from you know a financial planner or your accountant you know attorney a state attorney a state attorney yeah it's very important there's so many different vehicles and just you know every day that seems to be another bill in Congress they're trying to shut this this down of this loophole down and China's always changes too and I know like for example we had a show last week 1031 exchanges and we were talking about personal property well they just took that away last week you can't exchange well it's I don't know that the pass but it's in the bill that you can't exchange personal property for personal property still do with real estate but you can't do it cause boats airplanes you know they take it right off right off the table so I mean that's just an example of how things change all the time so you know if you're buying a home all you obviously be get divorced you definitely want to put the team in place because it's it's a high stressful situation as it is the last thing you want to think about is to make sure that your finances or order than your drama in this thing up the right way for the future obviously for the benefit of your children if you have children it makes it a lot easier if there's no children involved obviously but yeah it's still a difficult process so with that said Mike you have anything you'd like to add no not really you know if you want you know I will say if you are someone that is in a situation you know and you need someone to talk to I can be reached at seven eight one two four one one two five four that's new Fed mortgage out of Danvers mass and in my last number four seven nine oh four I'm an MLS number the regulators out there two zero four zero zero and in my last number for the company 1881 and you know you also see our Mike's website you'll see that he has many testimonials yes probably as the you know what are the most tested ones I've seen in the business because he does take a real special approach to his clients he fights for you guys he calls me up and yells at me all the time to make sure I think it's close on time so I mean he definitely fights with his customers maybe a little bit too much but I mean you'll get over but yeah definitely reach out to Mike rice the mortgage guy in Fed mortgage and Stu you have anything like that any questions no questions I'm happily married I'm a homeowner I don't have a trust and I'm approaching my 60 so that's of concern and I'll probably be speaking with Mike over a cup of coffee when the podcast ends today great fire gas cafe we're at seal New Hampshire the great coffee shop upstairs you guys smoke shop and thanks that's uh you know we'll be talking to Jim cross a little later today he's in the studio audience so thanks to everybody and I'll see you 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