I’m going to write this series backwards. I’m starting with the punch line. Then, I’m going to build the rationale for it, explaining exactly why my recommendation is necessary. I will have at least 4 case studies. I will use real numbers. I will not use real names so I can protect the guilty.
It’s one of the most critical articles or series that I have done. And, I ask you to PLEASE pass this on to every family law attorney that you know…even in other states (where they will not need to bother with the word “Owelty”).
So, if you care nothing about the rationale (at least for now) and just want the mother lode, the "meat of the matter," the central message... well, here it is:
When negotiating – in mediation or in any binding agreement - a buyout of a spouse’s interest in the marital residence, use the phrase “NET BUYOUT” rather than the word Owelty lien.
Specifically, use the wording “net buyout to spouse shall be $____ with the actual Owelty lien amount to be determined by the lender-financier in consultation with [grantee client, being awarded the house subject to the buyout.]”
Of course, the superior phrase would be: “net buyout to spouse shall be $____ with the actual Owelty lien amount to be determined by Noel Cookman in consultation with [grantee client, being awarded the house subject to the buyout.]”
But, do what you can.
That’s it. See you soon with #2 in the series.
Thank you for reading.