Posted by Ben (FL) on October 29, 2001 at 15:42:40:
He could sign QCD, then she could give him a promissory note and performance mortgage. He would record the mortgage. The language of the mortgage would say something like “Upon sale or transfer of interest in property 1/2 proceeds go to ex-husband…”
romissory note would be for “1/2 proceeds of sale or transfer”
Sounds messy, but he wants to be secure, and secureity is messy.
Housing transfers and divorce - Posted by Ricih[FL]
Posted by Ricih[FL] on October 29, 2001 at 14:55:08:
A co-worker of mine is going through a divorce (amicable one so far). They’ve sold their primary house and paid off all bills. The wife (my co-worker) has moved back into the (conveniently) recently vacated rental house they have. They intend to sell the house as soon as they can and split the profits but the husband is getting ready to transfer to California and doesn’t seen willing (at least for now) to sign a limited power of attorney for the sale of the house.
What the wife has asked me about is: how could they transfer the husband’s interest in the property while also showing he is still entitled to 1/2 of the proceeds after the sale? The easiest way to transfer ownership is via quit-claim deed, but that won’t show the money he is still due after the house sells. I’m thinking a conventional purchase and sale contract, with the wife taking subject to existing loan, owing the husband 1/2 the proceeds of the sale when it occurs. There would have to be wording in the contract to state the various provisions of the contract would have to survive the closing.
I’ve told the wife I thought things like this was handled through the divorce proceedings (I have NO experience in these things! whew!!) but that she should contact the lawyer they’re using for their opinion.
I’ve also thought about transferring the property into a trust and assigning the beneficial interest to the wife but I’m not sure at this point if it would be worthwhile to go to this much trouble.
Anyway, I’m hoping someone else out there could lend some ideas on what we could do. I’ve thought about purchasing this home myself as an investment but she want’s to sell it for basically retail and it still needs a little work to bring it up to where it would command full rental price. An advantage is that it has a separate 1BR guest house that could also be rented out but it has even more work to do to bring it up to rental condition. Anyway, I’m still thinking about it. If I purchased this house, it would be essentially at retail (I hate to “steal” from friends and coworkers!), but at the current interest rates, the numbers will just work out and it is in a fairly nice location.