Full question:
We have a legal separation with final divorce in November. Our home is on the market. I would like to sign a 'Contingency Contract on a home that I would like to purchase, can I do this?
- Category: Contracts
- Date:
- State: National
Answer:
In North Carolina, property division during divorce is based on equitable distribution. This means that while the division of property and debts should be fair, it may not be equal. The court considers various factors, including income, property, liabilities, and the needs of the parties involved. Generally, property acquired before marriage or received as a gift or inheritance may be excluded from the marital estate if it hasn't been used for the benefit of both parties.
A contingency clause in a real estate contract includes conditions that must be met for the purchase to be binding. For instance, a house sale contingency allows buyers to sell their current home to finance a new one. If you want to sign a contract to purchase a new home with a contingency related to the sale of your marital home, you can do so. This new property could be considered your separate property.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.