Legal Question in Family Law in California

buy out of house

my husband and I are divorcing. He is buying me out of the house. He used inheritance money to pay off the loan - $75,000. Is that 75K deducted from the sale price of the house? Am I also obliged to deduct 3% of my portion for possible realtor fees in the event he sells the house in the future? He is telling me ''yes'' to both of these issues


Asked on 6/17/06, 9:36 pm

1 Answer from Attorneys
KATHIE SIMMONS KATHIE SIMMONS

Re: buy out of house

If he paid the conmunity debt (mortgage) with his separate property (inheritance) he is entitled to be reimbursed. You take the sale price and deduct the debt (before he paid it) to get the equity. This is divided in half and that is what he has to pay you. As for the 3% future sales commission that is up to you. The advantange to you of selling to him is that there's no commission. He gets the property tax advantage over you if you purchase another home. Also, if you purchase another home you have to live in it for 2 years to be capital gains tax free. And, when you sell you have to pay a commission. If you are just looking at future possibilities them he should be paying you.

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Answered on 6/19/06, 1:27 pm


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