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Pending Divorce, Lien Strip & DSO
Listmates,
Client "H" is in the process of getting a divorce and wants to file a C13 (W
is not filing) to strip a second lien and discharge other unsecured debt. He
and his soon to be x-wife have agreed to the terms of a stipulated judgment
whereby H would be required to pay $4500 in family support but could
"satisfy the support obligation by directly paying the mortgage on the
family residence." But later in the stip it reads that H is responsible for
payment of the "full amount of mortgage associated with the family
residence." (The divorce has not been finalized.)
The family residence has a first and second lien in both H and W's names.
Title shows they own as joint tenants. The stipulated judgment states that
the parties will hold the family residence as tenants in common and will be
sold when the youngest child graduates high school (or upon mutual
agreement). There's also a paragraph that the tax basis of the community
property will not change. After speaking with H and W, it was their
original intention to take title to the house as community property and they
were misinformed about what they were signing up to at the time they bought
the house. (W lives in the family residence with the 2 kids. H rents an
apartment now.)
The terms of the dissolution also require that H is solely responsible for
all costs and expenses associated with the minor children's attempts to
obtain a Bachelor's degree. The children are 10 and 13 years old.
There's also an indemnification provision regarding payments to be made on
transferred property.
So, my main question is, do you think I can schedule the mortgages on the
house as community property for the purpose of stripping the second? And,
also receive a discharge on that debt without running into any DSO argument?
A few other question:
-Can he pay the DSO outside of the plan?
-If H is putting money away for their college every month into a college
savings account, can I deduct that in J and B22?
-For the community debts that are his obligation upon transfer - if those
get discharged I imagine the creditors can hold W liable. Given 523(a)(15),
does W have any basis to file a non-dischargeability action or enforce the
indemnity provision?
-Is there anything else I should be looking at?
Thank you,
Stephen Vokshori
Vokshori Law Group
1010 Wilshire Blvd. Ste. 1404
Los Angeles, CA 90017
main: (213) 986-4323
fax: (310) 881-6996
email: stephen@voklaw.com
web: www.VokLaw.com
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