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  1. #1
    Join Date
    Jul 2015
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    Default Selling Real Estate After Divorce

    My question involves a marriage in the state of: AL

    "Husband owns certain real property located at XXXX drive, CITY, AL, COUNTY. The parties agree that said property shall be listed for sale and upon sale of said property, the net proceeds shall be equally divided between the parties. The parties acknowledge that said property is free of any indebtedness.
    Divorce was final August 2013. I listed this vacant unimproved property for sale on craigslist and put "For Sale by Owner" signs on the property. Coming up on 2 years this is still hanging over my head. I am paying all the taxes, insurance, etc on this property. I am wondering now, can I just sell it for a $1 to get rid of it?

    Secondly, if I can sell it for $1, can I sell it to an LLC that I formed after the divorce?

    The entire text of our agreement dealing with this property is quoted above. It says nothing about appraisals or fair market value or who I can sell it to, basically it has no restrictions at all. In my mind absence any restrictions I am free to sell it to whom ever for whatever, including and LLC to I own.

    For full disclosure, I would estimate the Fair Market value at $25-35k; Property was purchased for $20K in 2011. Again, its vacant and unimproved land. I have been listing it as $38k (neg) and I have had ZERO offers. At this point if someone would offer me $20k or even $15k I would have taken it.

    I have also thought about not paying the taxes and letting the county have it.

  2. #2
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    Default Re: Vacant Property Sale After Divorce

    If you choose to sell the property for less than FMV, you can expect that a court will require that you pay your ex- one half of FMV out of your pocket.

    If you sell it to yourself, even through a LLC, you can anticipate that a court will have no problem seeing through your self-dealing.

    You say that FMV tops out at $35K, and you say you're listing it only on Craigslist for $38K. If you want the property to sell, try setting a reasonable asking price and try marketing it properly.

  3. #3
    Join Date
    Jun 2015
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    988

    Default Re: Vacant Property Sale After Divorce

    I agree with above that a $1 sale or super low self serving price is to invite expensive debate ....and that to offer it at say 27,000 makes more sense....or a written offer to buy out spouse at say 1/2 of 25,000!

  4. #4
    Join Date
    Oct 2006
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    Default Re: Vacant Property Sale After Divorce

    Quote Quoting Mr. Knowitall
    View Post
    If you choose to sell the property for less than FMV, you can expect that a court will require that you pay your ex- one half of FMV out of your pocket.

    If you sell it to yourself, even through a LLC, you can anticipate that a court will have no problem seeing through your self-dealing.

    You say that FMV tops out at $35K, and you say you're listing it only on Craigslist for $38K. If you want the property to sell, try setting a reasonable asking price and try marketing it properly.
    I agree with this advice and will add that getting a professional appraiser to assess FMV is probably a good idea.

    I will add as well that stopping paying the taxes so that county will take it is foolish as well. I know someone who did that and the judge made them cough up 1/2 of FMV and give it to the ex.

    Just get the land properly appraised and properly marketed and stop playing games.

  5. #5
    Join Date
    Jul 2015
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    2

    Default Re: Vacant Property Sale After Divorce

    Thanks for the advice. I kind of had in the back of my mind that while this was a way to be done with it, it would just create new problems.

    I may just deed it to her, signing all interest over to her, thats how much I want to be done with this 2 years later. If I do that, I should be able to get rid of this problem and don't possibly see how it could come back on me in a negative way?

    Unless I am missing something else?

  6. #6
    Join Date
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    Default Re: Vacant Property Sale After Divorce

    If she's willing to accept the property, then you can deed it over to her.

  7. #7
    Join Date
    Oct 2006
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    16,474

    Default Re: Vacant Property Sale After Divorce

    Quote Quoting FFEMT
    View Post
    Thanks for the advice. I kind of had in the back of my mind that while this was a way to be done with it, it would just create new problems.

    I may just deed it to her, signing all interest over to her, thats how much I want to be done with this 2 years later. If I do that, I should be able to get rid of this problem and don't possibly see how it could come back on me in a negative way?

    Unless I am missing something else?
    Like Mr KIA said you can do that if she agrees, however I still do not understand why you don't simply turn it over to a realtor to market and sell at true FMV. After all, that is what she is going to do, and won't you feel foolish if it sells quickly?

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