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Affidavit– A written statement that you swear is true, and which can be used as evidence in court. It’s basically a sworn document that can come up in all sorts of legal cases, like family disputes or civil matters.
Appraisal – A professional look at your property to figure out what it’s worth in today’s market.
Asset Titling – Asset titling is about how you own things—whether it’s in your name alone, shared with someone, or through a trust. (How you title your stuff affects who controls it and how it is handled in divorce.)
Bird’s Nest Parenting/Nesting Arrangement – It’s a co-parenting setup where the kids stay in one home, and the parents take turns living with them. The idea is to keep things as stable as possible for the kids during a divorce or separation. Also called “nesting.”
Capital Gains Tax– It’s what you pay on the profit from selling something, like a house or stocks (basically, what you sold it for minus what you paid for it). You don’t owe this tax until you actually sell and make a profit. How much you pay depends on how long you’ve owned the asset and your income.
Cohabitation– When two people live together like a married couple, whether they’re actually married or not. It’s a close, supportive relationship where they share duties and benefits, just like in marriage. The definition can vary depending on state laws.
Equity – Simply put, it’s the value of something—like a house or a business—after you’ve subtracted what’s still owed on it. In divorce, equity is the portion of a property you fully own, free of any mortgages or liens. It’s calculated by subtracting any remaining debt on the property from its total value. Equity often plays a major role in divorce proceedings, as it’s one of the biggest assets to divide.
HELOC – Stands for Home Equity Line of Credit. Home equity loans are generally unaffected by divorce, but the terms, obligations, and responsibilities tied to them can be impacted. It’s a smart move to work with a professional who can guide you through this process.
Lien – A legal claim on a debtor’s property or assets, usually ones use as collateral for a loan. Basically it’s when someone has a legal right to take your property if you don’t pay them back.
Marital Home/Residence – The legal residence of spouses (and any children) during the marriage period.
Marital Property – This definition varies by state. Generally, it refers to property that is acquired by either spouse during the marriage, and before separation.
Mortgage – A loan used to buy a home without paying the full price upfront. It’s an agreement where the lender (IE bank) provides the funds, and the borrower promises to repay the loan with interest. If the borrower doesn’t repay the loan with interest, the lender can take ownership of the property.
Primary Residence – The home where you live day in and day out.
Refinancing – A refinance, or “refi,” is when you revise the terms of an existing loan or mortgage, usually to get a lower interest rate or better payment schedule. If approved, you’ll get a new contract that replaces the original one, with terms that hopefully make the loan easier or cheaper to manage.
Right of First Refusal – A right that lets someone step in first to match an offer on an asset, like a property, before others can buy it. If the person with ROFR passes on the deal, the seller is then free to consider other offers.
Separate Property – Generally applies to property acquired by either spouse before the marriage, after the separation, or a specifically designated gift or inheritance. (As with marital property, this varies by state.)
Source of Funds Analysis (SOF)
Source of Wealth Analysis (SOW)