Emancipation

IT’S THE LAW!
EMANCIPATION - ITS NOT WHAT YOU THINK IT IS
By Christopher C. Meyer copyright January 2010


“Emancipation” refers to the removal of disabilities associated with childhood. Emancipation is not an all or nothing proposition. You can be emancipated for some purposes, but not for others: you can vote when you are eighteen; but you can’t drink alcohol until you are twenty-one. There is no set age of emancipatation for any and all purposes.

There is no specific lawsuit that you can file in Colorado to have a Court declare you emancipated. You have to file an action for declaratory judgment and request the relief you want the Court to grant.

The issue of emancipation most often arises in the context of parents’ child support obligations - since this involves money! For child support purposes, once a child is emancipated, parents no longer have child support obligations to the child. Let’s look at what “emancipation” means for child support purposes.

In Colorado the age of emancipation is nineteen for child support purposes, but there are some uncommon exceptions: the parties may agree otherwise in a written stipulation; if a child is mentally or physically disabled the Court may order child support to continue; if the child is still in high school, child support continues until the end of the month following graduation, but not beyond age twenty-one; or if the child is “otherwise emancipated”. A child is “otherwise emancipated” if: she has entered the military; she is married; or she is living away from home, she is self-supporting, and it is not a temporary situation.

A child who becomes emancipated for child support purposes may later become un-emancipated and the child support obligation may be reinstated. For example, if the child is married but the marriage is later annulled, dissolved or declared invalid, the child support obligated may be reinstated. Similarly, a child who moves out and is self-supporting loses her job and moves back in with her parents. This child may again be eligible for child support if she is not yet nineteen.

The law of emancipation is like any other law: you may not like it; you may not understand it; and you may not think it is fair, but it’s the law!

This article is for informational purposes only and does not constitute legal advice about your case.

Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.

Short Sale Of The Marital Home

THE MARRIAGE ZONE: Short Sale Of The Marital Home

By

Christopher C. Meyer and Ruth Bolas

copyright November 2009

What happens when you are getting divorced and your house is worth less than the loans associated with it? Is a short sale a potential solution?

A significant number of people who purchased or refinanced homes in the last few years are upside down in their homes. They owe more on the house than it is worth. In a divorce, the assets and debts are going to be divided between the parties. If the house sells for a net loss, that debt is going to be divided between the parties. Is there some way to avoid or minimize this debt without foreclosure or bankruptcy?

A short sale may be the perfect solution. Although it is not ‘short’ in duration, the short sale process involves a lender taking less or ‘short’ of what they are owed. In most circumstances there are two loans – a first and a second. To facilitate a short sale, the realtor would work with the lenders to negotiate acceptance of a lesser amount than what is owed. For example:

1st Mortgage $200,000
2nd Mortgage $50,000
Market Value $210,000

If the home could be sold for $210,000, then the first lender in this example could be paid in full and the second would have to accept a loss. Keep in mind this example does not include the costs associated with the transaction including commissions, title work, tax pro-rations, and closing fees (that are all paid by the lenders, not the home owners).If the property were foreclosed on, the second lender would get nothing, so better to accept a loss and recover some money in a short sale versus nothing in a foreclosure. Even where a mortgage holder in first position needs to accept less than what they are owed they typically will because in most foreclosures they will end up taking the property back for later sale as a bank-owned property. Banks make money by making loans – not by owning real estate.

Residual risk in a foreclosure or short sale is that the lender(s) could pursue a judgment for the ‘deficiency’ or amount still owed after the short sale or foreclosure, but this is not the general practice. In short sales, lenders used to issue a 1099 to the home owners for the deficiency, but now, with new legislation, in most situations the deficiency is not considered taxable income to the sellers/homeowners.

The lender’s motivation to accept a short sale is to get money quickly from the sale and avoid the expense of a foreclosure sale. The homeowners’ motivation is to avoid the adverse effect of a foreclosure on their credit ratings. When homeowners can demonstrate a legitimate hardship such as divorce, financial problems, loss of job, or health problems, lenders are very likely to work with them to facilitate a short sale.

If you struggling financially and you are upside down in your house, you may be able to avoid foreclosure with a short sale. A short sale is a complicated transaction and it can take a long time, but the credit damage is significantly less than that resulting from a foreclosure.

A short sale can be an effective damage control device for homeowners, but it requires patience and expertise. Keep this in mind if you are trying to minimize your losses as you exit from the marriage zone.

This article is for informational purposes only and does not constitute legal advice about your case.

Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.

Ruth Bolas is a licensed Real Estate Broker with Keller Williams and is also an attorney. She grew up in the Monument area and serves the Front Range specializing in working with buyers as well as home sales and short sales. Ruth Bolas can be reached at ruthbolas@msn.com or 719-488-3026 or 303-437-6010.