Myth: A divorce dissolves jointly-held credit accounts

When in the midst of a divorce, too many indivoduals fail to ask how their creditworthiness could be harmed by their former spouse. This is unfortunate, because joint liabilities can come back to haunt you. "Divorce attorneys are not financial counselors. That's not their job, but that's something you have to address.

If you're a joint account holder, you're equally responsible for that balance. You need to keep an eye on it, and you need to check your credit regularly to make sure that bill is getting paid. As the credit company to send yu a seperate statement so yuo can verify that your spouse who is responsible to pay the debt by the divorce decree pays on time and every month. If your spouse promises to keep current on payments on a jointly-held account and fails to follow through, be aware that will impact your score.

The Wealth Creation Team Successful Financing Strategy

We, at The Wealth Creation Team have a unique financing strategy that is the Advil for the pain in this real estate market today, that allow us to market properties different than other REALTORS® in the Los Angeles County.

Our unique financial strategy get double the potential buyers, so we can move the properties twice as fast, which allow our clients to maximize their NET EQUITY.

Myths About Divorce Decrees & Debts! What to Watch Out For!!!

Myth 1: A divorce decree protects my credit if my ex-spouse doesn't pay the debts they were assigned in the divorce.
Fact: If you have a joint financial obligation with your ex-spouse, and your divorce decree states that your ex-spouse is responsible, and your ex-spouse is delinquent on paying, your credit as well as his is affected. As stated above, your legal responsibility for a debt does not go away because a divorce decree assigns responsibility for a debt to your ex-spouse. Along with a legal responsibility to pay comes the right of the creditor to report a debt delinquent on your credit report if it is not paid as agreed in the original contract. Period.

Especially tragic are situations where one ex-spouse files bankruptcy and includes many joint debts in the BK. The spouse not filing bankruptcy is left holding the bag for these joint debts, and many times is not notified of the ex-spouse's filing until months or years down the road when it is too late to correct the situation. So not only is the spouse who didn't file BK responsible for the unpaid debts (and can be legally sued for them), but the non-filing BK spouse's credit also is ruined - something that cannot be corrected - because the credit bureaus have the right to report them delinquent.

Myth 2: A divorce decree can relieve a spouse from financial obligations of joint debts.
Fact: Debts that were obtained in the name of both spouses before a divorce (meaning both the husband and wife signed a document or application saying that they were both responsible for the debt) remain the obligation of both parties after a divorce, no matter what a divorce decree says.
Why? Because both of you signed a legally binding contract with the creditor, and the divorce decree does not amend this contract. Amendment of any contract requires agreement by all parties (including the creditor). Proof of the amendment requires the signature of all parties. During a divorce, the creditors are not even consulted, let alone a part of the divorce courts, and therefore the original agreements/contracts stand. Consequently, if your ex-spouse does not pay a debt that he was assigned in a divorce decree, then you are responsible for it.

Myths About Divorce Decrees

Creditors aren't interested in how property and bills are divided during divorce. If you have debt in joint accounts with your spouse, you are both responsible for paying it back, no matter what the divorce decrees says.

Creditors are not legally bound to abide by your final decree of divorce. A judge's order does not override what you owe your creditors and most attorneys don't alert their clients to the potential for problems if one spouse does not follow the court order. If one can't pay, the other is responsible. A court cannot overturn contracts between individuals unless they are fraudulent or not lawful. A divorce does not fit either of these definitions, so the contract remains in tact until the contract ends (when the debt is paid off).
I can't tell you how many individuals have been unpleasantly surprised to find out years later that their credit was damaged because the ex spouse that was supposed to pay the bills did not. DON'T FORGET TO DIVORCE YOUR SPOUSE FINANCIALLY!

Changing Your Will to Favor Your Children After Your Divorce

Do you have a will? You should have. It’s your way of making your wishes known and distributing your property and assets after your death and as such, it’s very important to have a will.

If you’re married or with a partner and own a house and have children, then you definitely should have a will. But when your circumstances change, you need to remember to change your will, otherwise you’ll find that, on your death, your former partner could receive everything you desired in your old will.

Things to Consider When Changing Your Will

You need to look at your assets, everything you own. After splitting with a partner,  you want to provide for your children in the event of your death, so you need to see your solicitor and make changes to ensure they will inherit whatever you own and wish to pass on. Remember, too, that assets aren’t all material; they can include heirlooms, family photographs and memorabilia, too, things you want your children to have and by which they remember you.

If, say, you’ve bought a house, make sure it goes to your children (if you have more than one child, spread it equally between them. If they’re under 18, it will need to be held in trust for them until they come of maturity). The same is true for all your financial assets. Have them held in trust until your children are old enough. This has the effect of making sure your former partner can’t have them.

The chances are that under your old will, your former partner would have been the executor of your estate. Obviously, you’ll need to change that. If your children are over 18, you can appoint them as executors. It’s a relatively simple procedure, and if you’re not sure, an estate planning attorney will be able to advise you on the mechanics and wording.

If You Find a New Partner

Moving in with, or marrying, a new partner is another huge change in your circumstances, and one that will require a new will. However, much as you love this new person in your life (and possibly any children she already has, as well as any you may have together), don’t forget your own children. Be equitable in the way you leave your assets.

Ways to Increase Your Home Value

Ways to Increase Your Home Value

by Andre Plessis

While you cannot protect yourself against market corrections such as what we’ve seen over the past few years, you can take steps to help increase your home's value and make it more marketable, more desirable than any other properties on the market. Keep in mind that if you want to sell your home, you have to look better than the competition. You should also be priced well, and understand that when you market a product your offer should be so irresistible that it should be difficult for anyone to say no to your offer. It can be done, when you know how to properly market your product or service. THAT’S MARKETING!

 The following tips are meant to inspire and motivate you to treat your home like the investment it was meant to be.

1. Make Repairs: Homes require regular maintenance and repairs are a necessary component of homeownership. Procrastination gets you. Stay on top of repairs as they are needed. Be sure to address all necessary repairs before you put your home on the market. For example, roofs, foundation are expensive to replace or repair. Many prospective buyers will pass up your otherwise wonderful home when faced with those issues. How do you expect someone to purchase your house if you do not take care of it? It says it all.

2. Curb Appeal: Curb appeal is about first impressions. A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they want to come inside your house by spending some time working on the its exterior appearance.

3. Updated Kitchen: Everyone knows that the kitchen is the heart of a home. As such, making your kitchen beautiful needs to be a top priority. Believe it or not, this does not need to be an expensive or difficult proposition. Kitchens are a real selling point. Outdated cabinets, counters, and appliances will stick out like a sore thumb to buyers. Be sure, however, that you research your comparables before beginning a remodel. You don't want to price yourself out of the running. This means if while you love granite and travertine, other homes in your area are selling with laminate, you will probably not be able to ask for a drastically higher price that covers the price of the granite.

4. Updated Bath: Bathrooms also hold much of a home's value. You don't need to rip out walls or install new plumbing to give your bathroom design a fresh new look. New low-flush toilets cost as little as $100. And tubs and showers can be easily replaced or resurfaced. Be sure, above all else, that your bathrooms are clean for showings.

5. Energy Savers: Buyers are looking for homes that are energy efficient. Low-flush toilets, solar panels, water filtrations systems, and insulated windows are all inexpensive fixes for energy zappers.

Consider these 4 simple tips and decide for yourself what may help your home retain its value.

Should you use a REALTOR® who is not a Divorce REALTOR®?

Lawyers and, not unlike doctors, specialize for a reason. Different areas of law have their own intricacies, rules, and peculiarities. And while a non-matrimonial lawyer would understand the legalities of divorce better than a layman, there is always a risk when a professional practices outside their own specialty.

REALTORS® and, not unlike doctors, specialize for a reason. Different areas of real estate (commercial, short sale, luxury estate, divorce etc…) have their own intricacies, rules, and peculiarities. And while any REALTOR® would understand the sale of real estate better than a “for sale by owner”, there is always a risk when a professional practices outside their own specialty.

When you don't practice regularly in a certain specialty, sometimes you don't know how much it is you don't know. Moreover, while using a family member can be less expensive (or even free), there is something to be said for the objectivity and accountability that comes with employing someone whom you won't run into at Thanksgiving dinner.

My sister is a neurologist. She is smart, and she loves me, but there is no way I'd let her give me liposuction. Even if I asked her to, she wouldn't do it because she has had no experience with it. Likewise, I would not attempt to sell her 50-unit building. I wouldn't do the former because I don't know anything about selling commercial properties. And though I am capable of doing the latter, I'd be too emotionally involved to be objective, and I might mess it up.

Did you know that keeping the house after divorce is extremely RISKY, placing your potential clients at risk for damaged credit, default, foreclosure or even bankruptcy?

NOT selling the house is among the riskiest divorce options regarding the marital home.
Where one spouse retains the house post divorce, either or both spouses risk significant, adverse exposure from: liens/clouded title, mortgage/consumer credit decline, default/foreclosure, bankruptcy, and other potentially devastating post-divorce financial/standard of living issues.

An RCS-D^TM REALTOR^® examines the legal, financial and emotional interaction between disposition of the former family home and issues of: marital/separate property, title/joint tenancy, real property and other assets; valuation of property; calculation of current and future house equity; capital gains and other tax and deduction issues; post-divorce standard of living, collaboration -professional cooperation for mutual gain (time/effort/money) and emotional closure.

To ensure successful resale (in less time for the most money), an RCS-D^TM REALTOR^® explores the latest in strategic home preparation featuring Condition (home inspection, home repair, home improvement) and Presentation (de-cluttering, depersonalizing, strategic cleaning, home staging, etc.).

RCS-D^TM REALTORS^® are specially trained to neutralize divorce real estate as a business transaction, in the best interest of the house and each divorcing spouse.

Whether a divorce is completed, just beginning or somewhere in between, an RCS-D^TM REALTOR^® can help you determine your best options now for a fair property settlement and a stronger financial future.

Warm Regards,

Andre Luc Plessis

REALTOR®, RCS-D^TM REALTOR®

Keller Williams® Realty

The Wealth Creation Team

CA DRE License # 01856185

Office: (818) 341-2972 - Cell: (310) 266-9463

Email: DivorceRealEstate@att.net

How to Sell a Home When You Divorce in Los Angeles

Whether a divorce is completed, just beginning or somewhere in between, an RCS-D^TM REALTOR^® can help your clients determine their best options today for a fair property settlement and a stronger financial future.
Our mission is to educate and empower others regarding the reality of joint real estate, including the pros and cons, technically the rights and responsibilities, of joint debt (especially joint mortgage), joint ownership, and true house equity, before and beyond house appraisal.



We leverage the expertise of divorce and real estate-related professionals (e.g. law, finance/tax, emotional/psychological with home inspection, home improvement, home staging, etc.) in the “best interest of the house”, and each divorcing spouse.
Divorcing homeowners should break free from joint debt and joint ownership, especially the family house!



They may be divorced, but did they divorce the house? Keep in mind divorce does not automatically cancel or sever joint mortgage or any joint ownership of the house.



Because the most dangerous asset in divorce is...the HOUSE, the best time to protect your financial future is...BEFORE divorce. What your clients don't know during your divorce will hurt them more, long after.
Major mistakes in divorce real estate are preventable during your divorce but are not fixable after your divorce.



These mistakes often result in damaged credit, mortgage default, foreclosure or even bankruptcy that ruin finances, families and futures, for years after a divorce.



Because such financially critical mistakes are preventable but not fixable, our solution is simply MORE/EARLIER: more due diligence and information from more real estate and financial experts much earlier in your divorce process. And the best time to protect your clients’ post-divorce credit is during the divorce process, for a stronger financial future.



Divorce real estate is the elephant in the corner of family courts nationwide. Although the marital home generally accounts for 60% of a family's net worth, there is nearly no state-prescribed guidance for divorce real estate.



As a result, family houses that are not sold (i.e. inter-spousal transfers) are too often over-valued or at least incorrectly valued based on over-reliance on appraisal(s) and/or inadequate valuation/evidence from either or both divorcing spouses.

Thus, as an RCS-D^TM REALTOR^®, I encourage more/earlier, that is, more evidence of house value and more detailed house valuation much earlier in the divorce process and definitely before property settlement negotiations.

As an RCS-D^TM REALTOR^®, I seek to empower divorcing home owners to Move Forward With More knowledge through divorce real estate education.

Warm Regards,

Andre Luc Plessis

REALTOR®, RCS-D^TM REALTOR®

Keller Williams® Realty

The Wealth Creation Team

CA DRE License # 01856185

Office: (818) 341-2972 - Cell: (310) 266-9463

Email: DivorceRealEstate@att.net

Los Angeles Divorce Real Estate: What is an RCS-D™ REALTOR®

As an RCS-D™ REALTOR®, Andre Plessis is professionally trained to neutralize divorce real estate as a business transaction in the best interest of the house, and each divorcing spouse.  Leading your divorce real estate team, The Wealth Creation Team also serves as project manager working with you and your lawyers and can refer financial professionals (Mortgage Planner, CPA, Financial Planner, Divorce Planner etc..) and real estate professionals (Home inspectors, termite inspector, Appraiser etc..) specializing in divorce to assist with essential evidence of your house value.  Such additional evidence is needed during your divorce process, especially before any property negotiations or mediation. 

Divorce Real Estate Los Angeles, CA

Divorce Real Estate

The family home is usually the most significant asset in divorce. However, when dividing your marital property, appraisal minus mortgage does NOT equal equity. This incomplete equation leaves your house over-valued and that works against you.  In addition to the inaccurate and unfair division of your property, you risk damaged credit, default, foreclosure or even bankruptcy without more real estate due diligence much earlier in your divorce process.

To protect your rights NOW, you need a real estate agent specializing in divorce - an RCS-D^TM REALTOR^®.