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  1. #1

    Default Net Profit Split After Principal Credit

    My question involves real estate located in the State of: NY
    Selling house that is co-owned with ex-spouse. In our divorce stip it states that after all costs associated with the sale is paid I will get a credit for the principal paid off from date of execution of divorce, then the net profits will be split 50/50. What is the best way to ensure I get what I am entitled to as per the divorce papers?
    I have been solely responsible for mortgage and all taxes and carrying costs since the execution of the stip.
    The buyer has signed the sale contract, we are supposed to sign tomorrow, then wait for the closing. Should this be addressed before I sign, after, or when? How should it be brought up? I kindly ask for your advise on how to handle this. Thank you!

  2. #2
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    Default Re: Net Profit Split After Principal Credit

    Quote Quoting bjornenolejonet
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    My question involves real estate located in the State of: NY
    Selling house that is co-owned with ex-spouse. In our divorce stip it states that after all costs associated with the sale is paid I will get a credit for the principal paid off from date of execution of divorce, then the net profits will be split 50/50. What is the best way to ensure I get what I am entitled to as per the divorce papers?
    I have been solely responsible for mortgage and all taxes and carrying costs since the execution of the stip.
    The buyer has signed the sale contract, we are supposed to sign tomorrow, then wait for the closing. Should this be addressed before I sign, after, or when? How should it be brought up? I kindly ask for your advise on how to handle this. Thank you!
    The best way to ensure that you will get what you are entitled to get is to make sure that the title company (or the attorney who is handling closing) is aware as to how the net proceeds from the sale are to be divided, and therefore will cut checks reflecting what each of you are to receive.

    It has nothing to do with the purchase agreement, it only has to do with closing.

  3. #3
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    Mar 2013
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    Default Re: Net Profit Split After Principal Credit

    Should this be addressed before I sign
    Yes, but "aware" doesn't cut it.

    You need a set of written instructions to the escrow people signed by both parties specifying how the proceeds are to be divided into separate checks.

    Make sure that's addressed in the closing financial statement that you review carefully before you sign any of the closing documents.

    If it's not in there you refuse to sign closing papers until it is.

    Make sure you carry a copy of your divorce stipulation with you in case your ex gives you a hare time about signing the instructions.

  4. #4

    Default Re: Net Profit Split After Principal Credit

    Quote Quoting adjusterjack
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    Yes, but "aware" doesn't cut it.

    You need a set of written instructions to the escrow people signed by both parties specifying how the proceeds are to be divided into separate checks.

    Make sure that's addressed in the closing financial statement that you review carefully before you sign any of the closing documents.

    If it's not in there you refuse to sign closing papers until it is.

    Make sure you carry a copy of your divorce stipulation with you in case your ex gives you a hare time about signing the instructions.
    “You need a set of written instructions to the escrow people signed by both parties specifying how the proceeds are to be divided into separate checks.”

    Signed by which two parties? The escrow people? The attorney for the purchase agreement is aware of stip and has a copy of it. Attorney said he would like this settled before closing. I just don’t see how. Attorney said the credit could end up sitting in escrow afterward until court settles it.
    The ex is extremely difficult.

    Will there be an additional closing contract to sign?

    Quote Quoting llworking
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    The best way to ensure that you will get what you are entitled to get is to make sure that the title company (or the attorney who is handling closing) is aware as to how the net proceeds from the sale are to be divided, and therefore will cut checks reflecting what each of you are to receive.

    It has nothing to do with the purchase agreement, it only has to do with closing.
    So closing agreement is yet another contract to sign? Who drafts that?

  5. #5
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    Default Re: Net Profit Split After Principal Credit

    Quote Quoting bjornenolejonet
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    “You need a set of written instructions to the escrow people signed by both parties specifying how the proceeds are to be divided into separate checks.”

    Signed by which two parties? The escrow people? The attorney for the purchase agreement is aware of stip and has a copy of it. Attorney said he would like this settled before closing. I just don’t see how. Attorney said the credit could end up sitting in escrow afterward until court settles it.
    The ex is extremely difficult.

    Will there be an additional closing contract to sign?



    So closing agreement is yet another contract to sign? Who drafts that?
    Closing "agreement" is the wrong terminology in my opinion. Closing documents are not really an agreement per se. A purchase agreement is a contract agreeing to buy/sell a piece of property. Closing documents are the documents that cause the sale to actually take place. Generally a closing happens either at a title company or with an attorney. What happens there is that the money for the sale of the property is placed with either the title company or the attorney, and after all of the paperwork is signed, the title company or the attorney distributes the money according to the rules.

    So, again, it would not be appropriate for you to want something included in the purchase agreement. The purchase agreement is between the two of you and the buyer. You would want separate documentation to provide to the title company or the attorney handling the closing regarding how the money is to be divided between the two of you. If your divorce agreement is specific as to the credit you believe is due to you then that would be the documentation provided.

  6. #6

    Default Re: Net Profit Split After Principal Credit

    Quote Quoting llworking
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    Closing "agreement" is the wrong terminology in my opinion. Closing documents are not really an agreement per se. A purchase agreement is a contract agreeing to buy/sell a piece of property. Closing documents are the documents that cause the sale to actually take place. Generally a closing happens either at a title company or with an attorney. What happens there is that the money for the sale of the property is placed with either the title company or the attorney, and after all of the paperwork is signed, the title company or the attorney distributes the money according to the rules.

    So, again, it would not be appropriate for you to want something included in the purchase agreement. The purchase agreement is between the two of you and the buyer. You would want separate documentation to provide to the title company or the attorney handling the closing regarding how the money is to be divided between the two of you. If your divorce agreement is specific as to the credit you believe is due to you then that would be the documentation provided.
    Thank you for explainign it to me! I appreciate that you always take your time to do that. So signing the purchase agreement should be done without question. Also, the sale is an all cash offer. I have sent the attorney the oart of the divorce papers stating the split up of the money from the house as well as the mortgage statemnt showing principal paid since execution. I have also contacted my divorce attorney to get his advise as he knows the ex's behavior quite well.

  7. #7
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    Default Re: Net Profit Split After Principal Credit

    Quote Quoting bjornenolejonet
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    What is the best way to ensure I get what I am entitled to as per the divorce papers?
    I don't really understand what this question means.


    Quote Quoting bjornenolejonet
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    Should this be addressed before I sign, after, or when?
    You mean beyond being addressed in the stipulation and your divorce decree?

    For nuts and bolts sorts of things (beyond making sure this is clear in the escrow instructions), you need to seek guidance from your divorce attorney or the attorney or realtor handling the sale transaction.

  8. #8

    Default Re: Net Profit Split After Principal Credit

    Quote Quoting pg1067
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    I don't really understand what this question means.

    Our divorce papers states that after all closing costs I get a credit for principal paid off on mortgage under the time I have been responsible for it. After I get the credit the net-profit from the sale gets split 50/50. IS it enough to bring divorce papers to the closing table or is there anything I should do leading up to this?




    You mean beyond being addressed in the stipulation and your divorce decree?

    For nuts and bolts sorts of things (beyond making sure this is clear in the escrow instructions), you need to seek guidance from your divorce attorney or the attorney or realtor handling the sale transaction.
    I have reached out to my divrcoe attorney, waiting to hear back from him. The attoreny for closing wants me to settle this with the ex prior to closing. I am not feeling comfortable with this option as the ex is a very abusive person.

  9. #9
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    Default Re: Net Profit Split After Principal Credit

    Quote Quoting bjornenolejonet
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    I have reached out to my divrcoe attorney, waiting to hear back from him. The attoreny for closing wants me to settle this with the ex prior to closing. I am not feeling comfortable with this option as the ex is a very abusive person.
    You shouldn't have to settle it with the ex if the divorce decree is specific on the situation. Ask the attorney for the closing why he/she thinks that it's necessary to settle it with the ex when the information has already been provided.

  10. #10
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    Default Re: Net Profit Split After Principal Credit

    Quote Quoting bjornenolejonet
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    I have reached out to my divrcoe attorney, waiting to hear back from him. The attoreny for closing wants me to settle this with the ex prior to closing. I am not feeling comfortable with this option as the ex is a very abusive person.
    That your ex is abusive doesn't seem to have anything to do with anything. What exactly does the closing attorney think needs to be "settled" given what your divorce stipulation and decree say?

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