October 2025 Escrow Brief

YOU HAVE QUESTIONS, WE HAVE ANSWERS!
VIVA ESCROW Q & A SEGMENT
(Real questions sent to us – verbatim!)

I am in the process of getting a divorce. Does my soon-to-be ex-husband need to sign the escrow paperwork if we are both on the ownership? And can you handle the reimbursement from him to me for certain things that I paid for through the years? How do you figure the net proceeds?

There are many scenarios to a divorce and a transaction could be handled differently for each type of scenario. Here are 3 most common ones. Just remember that “your mileage may vary!”

Scenario #1: The divorce is finalized – The ex-spouse gave up their interest as part of the divorce settlement. He/she would not be a part of the sale and would not get any proceeds. When the selling spouse goes into escrow, give the escrow a copy of the settlement agreement. It would show why this person agreed to give up their ownership interest. We escrow people tend to be very cautious when we see someone give up interest in valuable property. 

Scenario #2: The divorce is finalized – The settlement agreement states that they agree to sell the property. In this case both spouses would be a part of the transaction. Sellers would provide a copy of the agreement especially if it shows any reimbursements from one party to the other, or how to divide the net proceeds.

Scenario #3: The divorce is in process – Both spouses would sign as Sellers. Escrow would draw an amendment for them to sign to memorialize any agreements as to reimbursements from one party to the other and/or the disposition of the net proceeds. If the parties have attorneys, then it is important that they are kept in the loop until the transaction is finalized.  

Selling a property due to divorce is always very difficult for the parties and their drama can spill over into the transaction. Make the escrow officer aware of the divorce, so that they will seek to handle everything delicately and try not to exacerbate an already tense situation. 

Whether the divorce happened recently or years ago, it is always good to have a copy of the divorce decree and settlement agreement available. There have been instances in which claims against an ex-spouse pop up years later, affecting the ownership. Having the paperwork handy to show when the divorce was finalized and how the assets were separated goes a long way towards removing any liens and debts belonging to an ex-spouse. 

Sometimes, a divorce may not be a “done deal” so don’t think, “out of sight, out of mind!” Ever heard of spousal support liens? But that’s another story for another month.

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~ Funny video of the Month ~

Traffic court hilarity 

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~ Thought for the Month ~

Each morning we awaken to receive 86,400 seconds as a gift of life.
And when we go to sleep at night, any remaining time is not credited to us.
What we haven’t used up that day is forever lost.
Yesterday is forever gone.
Each morning the account is refilled, but the bank can dissolve your account at any time WITHOUT WARNING. 

SO, what will YOU do with your 86,400 seconds? Those seconds are worth so much more than the same amount in dollars. Think about it and remember to enjoy every second of your life, because time races by so much quicker than you think. So, take care of yourself, be happy, love deeply and enjoy life! Here’s wishing you a wonderful and beautiful day. Start “spending.” Don’t complain about growing old: Some people don’t get the privilege.

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THINK ESCROW! YouTube

Because we recently just had some HELOC Drama…

Freeze first before payoff!

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You Have Questions? We Have Answers!

Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
“Escrow is my FOREMOST language!”

Advance Disclosure:
The opinions expressed in this blog are solely the author’s. 
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com