Divorce and Real Estate
Divorce is very common and in most cases there is real estate involved.
If both parties are still on title, then both must agree to the sale. Both parties must sign all documents and disclosures. If one party refuses, then it may be necessary to get a Court Order.
Very often financial difficulties have contributed to the failure of the marriage. Oftentimes there are multiple loans and there is more owed than the house is worth. In that case not only does the house need to be sold but there is a short sale involved. Both parties must agree to participate in the short sale process. This involves a lot of paperwork and disclosure of financial information of both parties to the bank, but not necessarily to each other. A short sale would allow a sale for less than what’s owed to the bank. According to current California law, there is no obligation of repayment for principal residences. These laws may be altered or changed in the future.
Sometimes the home is being sold after one person has signed a Quit-Claim Deed. In that case, only the person still on Title is able to sell the home and sign the listing papers. Oftentimes even if a quit Claim Deed has been signed, the underlying Note, or obligation to repay the loans, is still in both names. In such a situation, the person who is no longer on Title has not say in the selling process and yet is still liable for the loans.
It is very important to consider all aspects of the titling of real property as well as any underlying loans with a divorce attorney early in the divorcing process. Nancy Valentine, who has much experience in dealing with divorcing couples, can provide you and your attorney with important information, including loan and title information, as well as an opinion of the current market value, to aid in the evaluation process.
The only deal killer is when one party is in agreement and the other is not. Unfortunately I can only assist when both parties are in agreement because both parties will need to sign the contracts and disclosures. Or if it is stipulated within the divorce decree that the property is to be short sold.
It may be easier and I would recommend having your attorney stipulate within your divorce decree the house is to be sold by short sale just in case you run into problems down the road.
Rest assured, I can help you as long as the Divorce Decree states for you to sell the property or both husband and wife are in agreement.
Contact me for further information regarding how to handle your real property during a divorce.