Legal Question in Business Law in Oregon

Re: Contract

This is a valid joint debt owed by you and your husband. It should be listed as such in the divorce papers. When the property is sold the outstanding balance owed to your mother should be paid with the profit. If there isn't enough profit than you and your husband need to split the difference and pay her like you would pay any other debt incurred during the marriage. Do you have an attorney handling the divorce? Does he? If you are both doing this without an attorney then it will be difficult to make him agree to pay your mother. The escrow company will have to have a signed agreement from the both of you stating how the profits are to be distributed between the two of you. If you cannot come to an agreement than the money will be put into the escrow companies trust until a judge decides on how to divide the money. At that time you can inform the judge of the debt and he can order that your mother be paid. This is the safest way to ensure that your mother will be paid since the money is coming from a third party and not your husband. If you need any additional information regarding the community property laws in california or help filing the appropriate papers, I can be reached at 877-546-9918. The consultation is free.

Sincerely,

John Hayes

Re: Contract

Put it in writing now, as you should have done at the beginning. I suggest you and your husband sign a promissory note to your mother secured by a deed or trust on the property. If your husband refuses to sign, you face a tough problem. Either way, go see a local real-estate attorney.