Property buy out at divorce

Asked over 1 year ago - New York, NY

I am in NY and my divorce was just finalized this month. We still jointly own a condo which has been rented out. Rent covers mortgage and fees so it's not a problem right now but I really want to sell it (just to be done with this whole thing) but my ex-husband wants to rent it out for a couple more years since housing market is going up a lot thesedays.

So we agreed that he will buy out my equity in the condo. If we were to list it on the market, we could sell it for a big profit. What are the things I need to consider to arrive at an agreeable price? MV - current loan outstanding and what else..?

Also, do we have to pay all the taxes you normally pay if you were to sell it to a 3rd party?

Attorney answers (4)

  1. David Alexander Browde

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . Price is something you work out with a broker after reviewing comparable sales. You may want to have the property professionally appraised. Taxation depends upon a number of factors - consult an accountant.

    Under the rules governing the conduct of attorneys in New York it may be necessary to remind you that this answer... more
  2. David Ivan Bliven

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . With due respect, this all should have been covered in your divorce settlement. If it was not, then you'll either need to reach an agreement or put the matter back before the Judge. It's certainly reasonable to use current market value for the division minus the outstanding mortgage with credit due if one party was primarily (or solely) paying the mortgage post-judgment. It's also reasonable to deduct 5% for what would otherwise be closing costs if the place were sold. That said, it behooves you to schedule a consultation with a NYC Divorce attorney for a full assessment.

    * If you found my answer to be "HELPFUL," or the "BEST ANSWER," please feel free to mark it accordingly.
  3. Rory M. Alarcon

    Contributor Level 12

    6

    Lawyers agree

    Answered . I agree that this should have been covered as part of your divorce. Yes, you will have to pay the taxes and costs of closing, but first retain an attorney to at least examine the divorce to determine if there are provisions regarding the sale / buyout.

    Rory Alarcon, Esq., is a New York attorney practicing the areas of Family Law, Matrimonial Law, Foreclosure... more
  4. Jayson Lutzky

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . Bring all the paperwork to an attorney to review. The sale should be spelled out in the agreement, if not it needs to be clarified in writing.

    If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate... more

Related Topics

Divorce

Divorce is the process of formally ending a marriage. Divorces may be jointly agreed upon, resolved by negotiation, or decided in court.

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