Virginia Divorce: Pendente Lite Spousal Support

Divorce is an expensive process. In addition to filing fees and attorneys’ fees, at least one party to a divorce is likely going to have to start paying rent for a new place to live. This transitional process can be hard on people who have become financially dependent on one another. 

Pendente lite support, or temporary support, is how Virginia attempts to allow the parties to pay for a lawyer or maintain their standard of living. What is pendente lite support, and how is it determined?

Basics of Pendente Lite Spousal Support

In Virginia, pendente lite support is discretionary. However, most judges in Virginia defer to a set of guidelines. 

When a court applies these guidelines, pendente lite support is calculated based upon the gross income of the parties. This means that the court will look at all of the income the parties have available and the needs of the parties while awaiting trial. Income, for spousal support purposes, can include anything from charitable gifts from friends and family or even public benefits such as TANF or food stamps. (Unlike in child support cases.)

The court will often require the parties to produce pay stubs, tax returns, and other documentation to determine financial positions.

Once the court obtains this information, the court will then decide how to proceed. Generally speaking, however, the court will take a specific percentage of the payor’s income and a percentage of the payee’s income. The difference between those amounts is the amount of temporary support that will be paid.

What if I can't afford the amount the court calculates?

The amount of spousal that this calculation produces is simply the presumed amount of support in some Virginia courts. Courts are allowed to go up or down from this amount depending on each party's financial needs. For example; if the payor spouse has a significant amount of debt, and the guideline calculations would put them out of house and home, the court may reduce spousal support.

What does this mean for my divorce?

This is simply a temporary amount that the court uses to make sure both parties can maintain their standard of living until the court has had time to resolve the case. The amount of temporary support the court orders may not be the same as how much you would pay once the divorce is finalized. It is important to keep this in mind if you are dealing with a motion for temporary support, and to negotiate appropriately.

Why you need a lawyer.

A lawyer is essential in pendente lite support proceedings because your lawyer can help make sure you have all of the necessary financial information form both parties to ensure a fair calculation. An attorney can also explore various defenses you may have to that amount, and advocate on your behalf to reduce that amount. If faced with divorce proceedings, make sure you hire a lawyer.

Virginia Real Estate: Types of Mortgages

Have you decided to buy your first home? Are you an investor looking to flip a property? Either way, mortgages are an important aspect of any house purchase. Mortgages come in all shapes and sizes. Mortgages can have different terms, rates, and obligations based upon the type of mortgage you qualify for. Below are some basic types of mortgages. Each of the types of mortgages listed below have several different subtypes of mortgages that are best discussed with your lender.

Conventional Mortgage

This is one of the most common types of mortgages. This mortgage is a private transaction between yourself and a lending institution. There are several different types of lending institutions. One common example of a conventional mortgage is a loan from your local bank.

These types of mortgages can come with a variety of benefits. Because these loans are with private institutions, your lender has a lot more freedom to offer incentives or other benefits. These mortgages are typically accessible for individuals with a good job and good credit.

FHA Loan

These types of loans are backed by the federal government. FHA stands for Federal Housing Administration. This is the governmental body responsible for supporting these types of loans.

The benefit of a FHA loan is that you may qualify for these loans even if your finances or credit are not that good. The downside of an FHA loan is that you are limited in the number of times you can qualify for this type of loan and the rates are highly regulated. The federal government sets strict standards for the amount of downpayment that has to be made and the rates associated with the mortgage.

VA Loan

These loans are only available for certain qualifying individuals. VA stands for Veterans Affairs. These are excellent loans for service members. More highly regulated than FHA loans, these loans are even more accessible than FHA loans and conventional loans.

How to Choose a Mortgage

There are a lot of considerations in deciding which types of mortgage or lending institution is right for you. Some of those considerations are legal in nature. Mortgages can have provisions related to when the lending institution can foreclose, potential increases in payments during the lifespan of the loan, and several other terms that are important to know. If you are considering buying your first home or investing in real estate, consider working with a team to determine what financial arrangements are best for you. Consider a team of a real estate agent, a CPA, and an attorney to maximize your understanding of your potential purchase.

Virginia Real Estate: Types of Professionals

Are you thinking of buying or selling real estate? If so, you have several options for accomplishing this goal. Property can either be sold by owner or may involve a brokerage firm. Either way, you need to be familiar with the various types of professionals that are involved in a real estate transaction, what their role is, and how best to interact with those professionals. Understanding the role of each professional will speed up the process and help you buy the right property or sell your property for the right amount.

So who are these professionals, and what are their jobs? The professionals listed below may not be a complete list of who is involved in your particular property.

Real Estate Agents

The first major group of professionals involved in the sale or purchase of a property is real estate agents. Real estate agents are licensed professionals that have access to special databases that provide significant amounts of detail for properties in your local area. Real estate agents use these databases to find homes for sale or to find comparable homes to determine how much your property should be sold for.

Real estate agents, however, are not lawyers. They cannot provide you with legal advice or tell you what type of deed you need. A real estate agent is also restricted from helping you settle certain types of disputes. The primary role of a real estate agent is to give you experienced pricing and location services.

Real Estate Inspectors

The second major group of professionals is home inspectors. Home inspectors are professionals that are hired to make sure that the property is safe, bug free, and structurally sound. Home inspectors can come in many different types. Some home inspectors are not able to provide engineering advice, and cannot tell if you have structural issues.

The most common type of home inspector will simply perform a cursory investigation, and will not attempt to uncover any hidden defects in the property. If you have substantial concerns about the safety of the property, you need to invest in a more thorough evaluation of the property by an engineer or other type of inspector.

Real Estate Financing

The third major group of professionals is the mortgage company or banking industry professionals. These individuals are there to provide financing or evaluations on the value of a property. A mortgage company may be essential if the property needs repairs prior to sale, or if a couple needs additional help to purchase a home. Mortgages can come in all shapes and types. These types of mortgages will be discussed in greater detail in a different post.

Lawyers

The final major group of professionals is lawyers. Lawyers play a huge role in the purchase or sale of property. A lawyer can provide legal advice in the event that there is a dispute between you and any of these other groups of professionals. A lawyer can also review deeds and provide guidance on how best to proceed on the sale or purchase of a property. Finally, a lawyer’s services can be used to make sure the sale of the home is properly recorded.

Virginia Real Estate: Types of Deeds

So you have decided to purchase or sell some property. One of the issues that can come up during the sale of property is the type of deed that should be used. A deed is a document that formally transfers ownership of property from one person to another. Deeds come in various types. Each type has its own benefits and risks.

If you are thinking of purchasing or selling a property, you need to be aware of these types of deeds.

Quitclaim Deed

This is the first, and weakest, type of deed. This type of deed is rarely a good idea. A quitclaim deed conveys whatever interest the seller has in the property to the buyer. This means that a seller may not even have proper title to the property, and could be selling the buyer bad title.

A quitclaim deed can also limit the type of ownership the new buyer has to the same type of ownership the seller has. For example, if the seller has a life estate, the buyer would only get a life estate.

Therefore, it is important to know that a quitclaim deed can be dangerous.

Special Warranty Deed

The second type of deed is the special warranty deed. This type of deed is one step above a quitclaim deed. It gives a specific type of title to the buyer and comes with several warranties. A special warranty deed can protect a buyer from issues of title created by the seller.

For example, if the seller negligently causes a mechanic’s lien to be issued against the property prior to or during closing, a special warranty deed would protect the buyer.

However, a special warranty deed does not protect a buyer against issues that come up as a result of the negligence of prior owners.

General Warranty Deed

This is the strongest type of deed. This type of deed comes with several warranties and protects the buyer from any conditions caused either by the seller or prior owners of the property. This is the ideal type of deed to have when buying property, and it is the most valuable type of deed.

If you obtain a general warranty deed, you can bring a lawsuit against a seller for any issues of title, whether it was the seller’s fault or prior owners.

Why you need a real estate lawyer.

A lawyer can help you determine what type of deed is best for your particular case. Sometimes, you don’t need to have a general warranty deed, and can save on the costs associated with that type of deed. However, you need to be aware of all the risks associated with having a lesser type of deed. Therefore, before closing on any real estate transaction, seek legal counsel. That way, if there is an issue down the line, you will know your rights.

Virginia Real Estate: Joint Land Ownership

If you are investing in property with a business partner or a family member, you need to know about the various ways that both your ownership interests can be structured. I last spoke about the different types and sizes of ownership interests. This article is dedicated to balancing the interests of multiple owners.

So how can property be owned by more than one person, and what are the benefits and negatives of each type of ownership.

Tenancy in Common

This type of ownership is most common between non-family members. A tenancy in common is where there are multiple people who have an ownership interest in a property. For example, three business partners could purchase a property together and all own the property as tenants in common. The partners are not required to have equal ownership interest in the property. Therefore, you can use this type of arrangement to have majority shareholders in the property.

The negative of this type of ownership style is that it does not common with a “right of survivorship.” This means that if one of the business partners pass away, the property will not automatically be divided between the remaining business partners. Instead, the property will be divided pursuant to that business partner’s estate planning documents.

Joint Tenancy

This type of ownership can be between either family members or business partners. The difference between a joint tenancy and a tenancy in common is that all members of a joint tenancy must have equal shares in the property. Furthermore, a joint tenancy must be created at the same time by the same deed. This makes planning a little more difficult. However, a joint tenancy can also have a “right of survivorship” if the appropriate language has been included in the deed. This makes the transfer of property much smoother in the event that one of the other owners are deceased.

Tenancy by the Entirety

The final major type of ownership interest with multiple individuals is restricted to husband and wife. A tenancy by the entirety is an ownership structure whereby both the husband and the wife own the property together.

There are several benefits to electing to utilize a tenancy by the entirety. The major benefit is that debt collectors cannot put a lien on the house unless the debt is owed by both the husband and the wife. Therefore, if one party has significant student loan debt, this may be the ideal ownership style.

The largest negative of this ownership structure is related to divorce or bankruptcy. If there is a mortgage on the house and someone needs to file bankruptcy, it may force both parties to file a joint bankruptcy. Alternatively, if the parties are getting divorced it will impact property distribution.

Why You Need a Lawyer

A lawyer is important in preparing to purchase property to help advise you on which type of ownership structure is best for your particular case. The list above is limited, and does not cover all potential types of ownership. Nor does the list fully explain all possible negative or positive consequences of each ownership structure. Consult with a lawyer before signing a deed so you have the ownership structure that protects you the most.