Often called a win-win scenario, a divorce lien is quickly becoming one of the most popular options for divorcing parents. This is because certain states impose a 50/50 split when it comes to marital property, so anything purchased during the marriage, such as a home, is divided down the middle. Unfortunately, this also means that life changes dramatically for both parents and any children involved. Read on to learn more about how the process of divorce liens come into the picture.
What does a divorce lien do?
When a couple files for divorce, they will usually be asked to divide all their assets equally. This includes everything from stocks to the family home. However, this tends to cause some issues if children are involved. Rather than forcing everyone to unroot from their current location, an attorney may introduce a divorce lien. This means that the custodial parent will keep the home, and the other parent will receive a note for the property. This win-win situation allows one parent to keep their familiar schedule and location and the other to receive funds to move on with their lives.
Things to keep in mind
Often, a divorce lien will be used as a negotiation tool by one of the attorneys. However, you should understand the importance of reading through the lien’s details as various parts of it can be negotiated. For example, a lien may produce a higher cash price for the noncustodial parent if the other parent decides on paying monthly rather than in a lump sum. It is in your best interest to consider these issues and negotiate according to your personal interests.
As you can see, there are a number of items within a divorce lien that need to be looked into carefully. It is highly recommended to bring on an attorney to look over any proposals presented to you.