Divorce often forces people to make major financial adjustments. The liquidation of property is common when homeowners divorce. Most of the time, property sales that occur before or immediately after divorces are straightforward transactions.
However, occasionally there are title disputes that may arise immediately before the sale or after the closing. In some cases, people who buy their homes from a divorced or divorcing individual could face a title claim brought by the other spouse.
Spousal property rules apply
When spouses divide their property during a divorce, they must do so in compliance with Florida spousal homestead protection rules. Assets acquired during the marriage or maintained with marital income may be subject to division when the spouses divorce.
Particularly when the property in question was the primary residence of the spouses, both spouses typically have an interest in the property. Even if only one spouse has their name on the title records for the property, they may both have an interest in its equity.
Some people try to sidestep rules related to property division by rushing through transactions immediately before they file for divorce or refusing to compensate their spouses afterward. Title disputes might arise when buyers unknowingly get swept up in the misconduct of a divorced or divorcing homeowner.
Anyone facing a claim from an outside party regarding title to their home may need assistance protecting their property. Having assistance during the title search process or when responding to a title dispute can reduce the likelihood of buyers losing their investment or facing prospective legal disputes over a marital home sold during or after a divorce.