Selling property depends on a wide array of variables and potential legal requirements.
In the case of a divorcing couple, real estate sales sometimes include a Marital Settlement Agreement (MSA). This means real estate attorneys, brokers, divorce attorneys, and clients are in it together.
Let’s unpack the intricacies.
What is an MSA?
During a divorce, a married couple may require an MSA to distinguish various financial and legal obligations.
Each party’s obligations are outlined in the MSA. Most MSAs require lengthy negotiations to meet approval on both ends for each party’s obligations during the divorce.
When real estate is involved, the MSA often includes ownership or sales obligations for each party. This is an important document for realtors, real estate attorneys, and other real estate professionals navigating a sale.
Navigating Real Estate Transactions During Divorce
Not all real estate sales are cut and dry. Even with an MSA outlining the divorce obligations of each party, things may go awry. It’s important to try and ensure the house is sold on time and within the boundaries of the sales contract, so:
- Both parties make a profit
- There are no fines involved for breaking contractual obligations
- The divorce, and involved marital belongings are dealt with smoothly
In an unconventional property sale process, issues of this nature are more likely to appear.
Working with a Real Estate Attorney for MSA Real Estate Transactions
A real estate attorney is a neutral party in the divorce proceedings.
This is a lawyer whose sole purpose is to deal with the sale of marital property. They don’t have any biases on the divorce case and may not even need to know the details involved outside of the property sale.
A real estate attorney discloses all information on the property and property sale to all parties. They deal with divorce attorneys working on behalf of married parties, as well as the married parties themselves, ensuring everyone is in the loop on all property dealings.
A benefit of real estate attorneys is their ability to act on behalf of clients through power of attorney. This lets them sign all documents outlining the following:
- Correct figures
- That no work was done to the property that wasn’t paid for
- That no foreign nationals are taking money from the sale out of the country
- That the buyer is liable for tax obligations
All the loose ends that might otherwise require a married couple to sign documents together in the sales contract can be managed by the real estate attorney. The real estate attorney has no investment in either side’s argument and manages the process. Their focus is simply selling the property.
Property sales during a divorce, entwined with MSAs and legal obligations, calls for the expertise of real estate attorneys. They serve as impartial facilitators, managing every detail of the transaction, from contracts to taxes, ensuring smooth and fair dealings for everyone involved. Their role is crucial in mitigating complications and fostering smoother transitions for divorcing couples in the real estate realm.
The Minchella & Associates Difference
With over 40 years of experience in Illinois real estate law, Erica Minchella has represented thousands of home sellers and buyers, landlords, and commercial and investment property owners. For more information, schedule a consultation today.