Common-law misconceptionsWritten by Andrew Stuart of www.yourmoney.com
Arsenal and England soccer star Ray Parlour was recently ordered to pay his ex-wife Karen a third of his earnings for next four years in a high profile divorce case. And this £444,000 a year income was on top of two mortgage-free houses worth over £1 million, plus a lump sum payment of £250,000.While most people don’t earn million plus ‘wages’ of ageing premiership footballers, and will find it hard to comprehend sums of money involved, this case shows that marriage can be a very expensive business – especially if it ends in divorce. However, Government is concerned that Britain’s two million cohabiting couples should also be made aware of their responsibilities in event of them splitting up. Common-law myth The Living Together campaign, through Advicenow.org.uk website and a marriage research charity called One Plus One, sets out to debunk ‘common-law’ myth. The legal status of a common-law wife or husband was actually abolished in 1753, but many people wrongly believe that common law marriages exist and that cohabitees have similar rights equivalent to married couples.
| | Home Equity LoansWritten by Levetta Rivera
A home equity loan allows you to cash-in on equity you have built-up in your home. The funds you receive can be used for debt consolidation, home improvement, college education, investments or any purpose. With a home equity loan your home is used as collateral to secure loan. If you default on payment you can lose your home so it is important to insure that you can afford to take out loan before you sign on dotted line!Many homeowners get a home equity loan to consolidate bills. This can be a great strategy if you are overburdened with high interest credit card and/or consumer loan debt. A home equity loan can usually be obtained at a lower rate and all or a portion of interest you pay on loan may be tax deductible. If you are considering a home equity loan to consolidate your debt it will be wise to cut up your credit cards and close out accounts. The last thing you want is to take cash-out of your home and end up back where you started from because you did not have discipline to stop using your credit cards! A home equity loan can also be a great source for obtaining cash to make home improvements. Next to debt consolidation, home improvements are 2nd most widely used reason that consumers obtain home equity loans. Depending on what kind of home improvements you are making, it can increase value of your home which may help to justify added monthly payment expense you incur when you obtain a home equity loan.
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