February 11th, 2019 at 9:06 am
A. Yes.
B. Yes, if the couple holds title together as tenants in common, but not if they hold title as joint tenants or community property.
C. Yes, but it’s probably a bad idea.
D. No.
Answer: The ex-husband can sell his 50% interest in the property without his ex-wife’s consent. It doesn’t matter if the couple holds title together as joint tenants, tenants in common, or community property. Hence, Answers B and D are wrong. Of course, if the ex-couple holds title together as joint tenants or community property, the ex-husband’s transfer of his 50% interest to, for example, Bob Buyer, will, as a matter of law, result in the ex-wife and Bob Buyer holding title together 50-50 as tenants in common (with no right of survivorship).
As between the remaining two answers, A and C, Answer C is the best answer. Virtually no one in the open market will want to buy a 50% interest in a home to own together with someone they don’t know. Anyone interested in that purchase is likely to: (1) offer a heavily discounted price as compared to 50% of the property’s fair market value; and (2) require a co-ownership agreement with the ex-wife who will probably refuse to sign such an agreement.
What you may offer to do in this situation is act on the ex-husband’s behalf in discussing this matter with the ex-wife. Perhaps you can convince her to sell with him. This may be a viable option if the 2 of them have an amicable relationship. Perhaps the ex-husband is willing to offer her more than her 50% fair share of the sales proceeds as an extra incentive to sell.
Another option for the ex-husband in this predicament is to suggest that his ex-wife buys him out, perhaps by refinancing the home if needed and possible. Another possibility is for the 2 of them to go to mediation together. Otherwise, the ex-husband’s last resort is to go to court to file a partition action and obtain a court order ordering a buy-out or sale of the property.
-Thank you to Yennis Wong (Pasadena Office) for suggesting this week’s legal tip.
-Happy Valentine’s Day to all you lovebirds!
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