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:
North Carolina is considered an equitable distribution state, meaning that the division of property and debts between the divorcing parties should be fair and equitable, but not necessarily equal. While the trial court's discretion will not be disturbed on appeal without a
showing of clear abuse, the court will consider the income, property, and liabilities of the parties; any obligation for support from a previous marriage; the duration of the marriage and the age, physical and mental health of the parties; the needs of the custodial parent; the
expectation of pension, retirement or other deferred compensation rights that are not marital property; the contribution to the earning potential of the other spouse; and, any other factor the court deems just and proper. Generally, separate property acquired before the marriage or by gift or inheritance during the marriage may be excluded from the marital estate if neither the property nor its income has been used for the common benefit of the parties during their marriage.
A contingency clause, in the context of real estate, refers to conditions attached to an offer to purchase property and included in the real estate contract which must be met in order to make the purchase offer binding on the buyer, such as a house sale contingency clause. A
house sale contingency clause allows home buyers time to sell their present house in order to finance a new one. Contingency clauses should satisfy the concerns of both the buyer and seller.
We are not aware of any authority that would prevent you from signing a contract to purchase a new home with a contingency clause relating to the sale of your marital home if this new property would be considered your own 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.
