Can investment real estate that was put on the market prior to filing for divorce be sold?

This question cannot effectively be answered in this format. The propoerty can certainly be listed and an offer received and reviewed. However, there will be a question of whether this property is part of the marital estate, and, therefore, whether the wife has a legitimate claim to it. Yes, the money used to purchase and remodel the home came from a family member, however, any profit on the asset may be part of the marital estate. As to the family member who loaned this money, he/she should get a loan agreement and a promissory note from the borrower in order to secure the money. Certainly a question in determining that would be how the properties are held, i.e. in what name. Are the paroperties held in a company? Have previous proceeds been deposited in a joint account of the married couple? All these and more are questions that will need to be explored.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship. For legal advice, you should retain legal counsel in your state for advice regarding your specific circumstances.