Source: Family Advocate, Vol. 37, No.3
Good negotiators, like good lawyers, are prepared. They know where they are going and how to get there. As any successful lawyer will tell you, superior preparation can often spell the difference between winning and losing the case, especially in hard-fought, complicated cases.
When you sell your house during a divorce there are certain things that you should consider regarding equitable distribution:
1. Make sure that the house does not appear empty by removing the furniture. If buyers are aware you are going through a divorce, they may try to offer you less than your house is really worth. If possible, leave the furniture and photos on the walls. You can do a stipulation with your spouse on who gets what when you do sell and if you are not going to be living in the house you may want to get that done before you leave.
2. You may not agree with your spouse on the listing price or realtor. It is best to communicate with your spouse rather than have the court make these decisions for you. If you cannot agree on a realtor, one option the court likes is to submit three names to the court each and they will decide or you could do this between attorneys or a mediator. If you cannot agree on a listing price, you may want to defer to the realtor. You also may want to build in an agreement on dropping the price after a certain time has passed and how much you agree to drop it.
3. Keep receipts for repairs and always exchange estimates. If you make repairs to your house and you are getting divorced, you want to be sure to get credit for the repairs and reimbursed from the proceeds of the sale of the house. In order to do this, you need to make sure the repairs are necessary and agreed to before you pay for them. A good idea would be for each spouse to get estimates and agree in advance before the work is done as to what is getting reimbursed.
4. You may have an uncooperative spouse who refuses to market the house or make it available. Remember in a divorce that the Court can control and enforce the sale of the house and remedies against an uncooperative spouse could include giving Power of Attorney to one side only to control the sale, or even in some cases, eviction from the house of an uncooperative spouse.
5. You need to consider who will pay the mortgage, expenses and taxes while the house is up for sale. If the house is occupied, normally, the spouse who remains in the house is responsible for everything and this is not something reimbursed. If the house is unoccupied, these expenses can be imposed on both parties and you will want to keep receipts for everything to seek a credit in equitable distribution.
6. Make sure you have an agreement in place on disbursement of the proceeds when the sale is completed.
7. Remember if you work together with your spouse it will benefit both of you in getting the highest dollar value for your home and save you unnecessary legal fees.
It can be difficult to catch up on support if a large arrears balance accrues. Unfortunately, sometimes the party paying support has good intentions to pay support but due to circumstances out of their control, end up falling behind. It may be possible to arrange a settlement to clear up an arrears balance. The settlement will generally involve a reduced total in exchange for a lump sum payment. Such an arrangement can be agreed upon between two private parties at any time. There is more gray area when the debt is owed to the State.
The majority of the states either have a fully implemented debt compromise plan or make a decision on debt compromise proposals on a case-by-case basis. The rationale in even allowing debt compromise is to increase the likelihood the states will receive some of the debt owed as opposed to no payment at all. Pennsylvanian and New Jersey both consider debt compromise plans on a case-by-case basis. In Pennsylvania, by rule of the Supreme Court, any compromise on debt owed to the state must be approved by court order.
Parties are often encouraged to try to reach an agreement to resolve whatever issues have arisen in any legal matter. In family law, agreements are especially encouraged due to the personal nature of the issues at hand along with the belief that it is better for the parties to draft their own agreement rather than allow a stranger to dictate their family dynamics going forward. Most agreements in family law will be treated as any contract would and the parties will be obligated to comply with the provisions or face an action for contempt. The family court will retain jurisdiction over all agreements entered that are subsequently submitted to the court to be made an order. As with any contract the court is generally only concerned that the agreement was entered into voluntarily and knowingly. The court will not necessarily be reviewing the content of the agreement before allowing it to become an order of court.
If a provision of the agreement needs to be enforced and one party seeks the court’s help in pursuing contempt, at that point the court would need to examine the content of the agreement in order to make a decision on a resolution of the contempt. Many agreements will include a provision that the party who breaches the agreement will be responsible for attorney fees if contempt must be sought through the court to gain compliance. The most comprehensive agreement in a family law matter is a marital or property settlement agreement. This type of agreement sets out to resolve all issues in a divorce matter including, but not limited to, how the divorce will be proceed to finalization, division of property, child and spousal support and/or alimony, and custody. One provision that will not hold up in court even if the parties agreed to it is the waiver of child support. The PA Supreme Court ruled in Knorr v. Knorr, decided in 1991, that a parent may not contract away a child’s right to support as the court views child support as an entitlement of the child rather than the parents.
Contact our office by calling 215-752-6200, book online now, or contact us by email. We can meet you in our office or speak with you by phone.
