Understanding Real Estate Contracts in Divorce Proceedings
As a family law attorney in Pittsburgh, with limited knowledge and experience in business law, there will more than likely come a time when I am faced with a situation that requires the knowledge and experience of skilled attorneys in fields of law that are complimentary to family law but that are not an area of my focus. One such situation arises when divorce proceedings require an understanding of the rights and obligations of the parties under a comprehensive contract to purchase real estate in Illinois. Such is the situation discussed in a recent article below.
When a couple with a marital home in Illinois undergoes divorce proceedings it generally goes without saying that the home must be valued and/or divided in some form during settlement proceedings or at trial on equitable distribution of marital property. The value of the real estate marital asset may or may not be determined by appraisal, but it certainly will need to be established before the court will consider equity in the real estate on the basis of some adjusted value. It is possible that the Court may award the marital home to one of the parties in whole or in part rather than greeting on a particular division of other personal property or liquid assets held in the parties’ names.
Assuming that a home is the subject of dispute, it may be located anywhere, but will most likely have been the site of the parties’ residence at some point prior to separation. If a couple residing in Pittsburgh ultimately files for divorce, it is highly probable that some family law issues will be involved in the matter. Further, if after initial filing of the divorce action one of the parties relocates to Illinois for a new job and the real estate subject to equitable distribution is still in Illinois, the parties could seek a settlement of the claim regarding the real property without having litigation proceed in Illinois. This saves both the parties and their attorneys the time and money of litigating the issue, but the spouses must be careful to ensure they understand the terms of the deal they are agreeing to and who is responsible for what aspects of the contract to purchase real estate at the time of the divorce proceeding.
This complication is often encountered in divorce actions, and most commonly arises when one party seeks to acquire the real estate subject to equitable distribution by way of some form of contractual agreement under which he/she will buy out the other party’s rights and interest in the real estate. The spouse who moves away from the home may be looking to relocate somewhere close to his/her new employment, and the spouse who found employment elsewhere may seek to keep the family home in order to minimize disruption to the children’s lives and provide some stability. The challenge comes when the parties seek to buy the home in the party’s name who has already vacated in order to avoid complications of bringing the other parties into the transaction. What this means is that a settlement agreement is negotiated and one party pays fair value for the market value of the real estate, and then immediately after the transaction it may not be clear who the owner of the property is. Further, what recourse does the other party have if the transaction is completed and the market value of the property increases after the divorce action, for example?
These issues and more can all become critical to arrive at an understanding and agreement upon before conducting a settlement of a divorce action. Without a firm grasp of the terminology used in Illinois contracts to purchase real estate and the implications that these terms have on the equitable distribution of the assets they allocate to each spouse, it is easy to run into problems or a complete loss of value for the spouse who should have retained a greater share of the marital assets.
A contract to purchase real estate in Illinois will include the following, among other things, the purchase price, a statement of that interest to be transferred, a date for closing, any restrictions on use or occupancy of the property, specifications for payment of the sales price, and details on the remedies available in the event of breach of contract by either party. Especially when dealing with an international business such as the Chicago Cubs, the parties involved must have a full understanding of their legal rights under the agreements they sign. If the terms of the contract are not fully understood the parties risk breaching the contract, or at the very least losing value on their investment, and possibly even losing the real estate they were seeking to acquire through the agreement.
It is important to understand the connection between family law litigation in Pittsburgh and real estate matters in Illinois. There is a direct correlation, despite the distance between these two cities. Even individuals living outside of the city may have a half interest in Pittsburgh real estate, and without guidance on the matter may lose their investment during a divorce proceeding.
