Q: Help me understand the wording of a clause in the termination of maintenance payments?
I am in the process of finalizing my divorce with my husband and he had his lawyer put in the following clause "The difference between the fair market value of the marital residence being $150,000.00 or more in excess of the mortgage balance secured by the residence. If this occurs, the parties stipulate that the financial needs have changed and the need for maintenance will terminate."
My husband is letting me keep the house and his providing maintenance to pay for the mortgage. Is the wording saying that if the fair market value of the house is 150,000 more than balance of the mortgage at the time of the divorce or the current balance of the mortgage? He has listed those terms in addition to him allowed to get the house appraised once a year. Can someone help me understand this wording?
A:
OK, I read the clause three times, and I have to admit, it is a very convoluted sentence. It always worries me to read something that is purposely written to make the meaning difficult to understand.
Here is how I read it, if the difference between balance on your current mortgage and the fair market value of the house is greater than $150,000, you agree that your ex can stop his maintenance payments to you. (Who came up with this idea?)
I don't know if the $150,000 additional equity is fair for you, or equals all of your future accumulated maintenance payments. What happens if the $150,000 extra equity is achieved, he stops his maintenance, and the housing market collapses? You are taking market risk.
If my interpretation is correct, you need your attorney to change the wording, so the meaning is understood by everyone, including yourself.
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