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Should broker fees be a factor in a divorce home buyout?
Anonymous2 views2 answers
I plan on staying in the home, but have read that despite continuing to reside in the home, it should be assumed it would sell in which the real estate fees should be considered in the buy out.
If the fees are actually paid as part of the transfer then it would be normal for the fees to be considered, but in a quit claim or other transfer the fee should be minimal.
Good Luck
If I understand your question correctly, you are asking whether the buy-out formula should be the value of the house less any mortgage balance still owing less typical closing costs (realtor/broker commission and fees, and costs associated with a typical sale at closing) even though you plan to remain in the house and not sell it. While this certainly could be negotiated, and would result in a lower buyout, the typical method is to assess a buyout based on the actual circumstance. If the property is to be sold, then all costs of the transactions included. If not to be sold, then not included. In addition, the amount that a party may have to buy out the other with (e.g. marital lien) is not per property item, but is instead based on the net equity after all community property is considered. This is because if the house remaining with you has, for example $80k in equity, but the other party is receiving more of other property, the buyout after all property is considered may be less than 80k, or might even result in the party not awarded the house owing a marital lien to the party that retained the house. It depends on all the community property, the net equity (value less any encumbrance on it) of each property, which party is to be awarded each item of community property that exists, and the tally in each party' column. Now, as a related, but separate matter, parties are exempt from real estate excise tax when the property is transfered pursuant to a divorce. You should consult with an attorney to get case specific advice.