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If I have a contract in on a house to purchase and I or my

spouse file for divorce prior...
If I have a contract in on a house to purchase and I or my spouse file for divorce prior to the closing and our assets are then frozen, if the contract has a performance clause, what are the typical legal ramifications? Typically is the ernest money lost and i owe potentially for the cost of repairs already performed under the contract? If they sue for not purchasing the house, but our assets are tied up in a divorce, can they market and/or sell the huse during that time before our divorce is finalized? Can a judge order the purchse of the house regardless of the assets being tied up?
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Answered in 17 minutes by:
7/1/2012
Dwayne B.
Dwayne B., Attorney
Category: Estate Law
Satisfied Customers: 34,296
Experience: Estate Law Expert
Verified
They could sue for the difference between what you would have paid and what they would actually sell it for. typically, you would also lose the
earnest money although you would get a credit for that. You could also be liable for any extra damages the owners incurred, such as repairs.

However, if you apply to the court to have the order lifted and the court denies the order you could then argue a defense of "impossibility of performance" if they seek any extra damages.

Typically the owners don't pursue damages other than the earnest money but they can.


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Dwayne B.
Dwayne B., Attorney
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Experience: Estate Law Expert
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Customer reply replied 5 years ago
but if they do decide to sue and the divorce has been filed, is their lawsuit limited by the divorce? i.e. can there be a settlement and verdict while the divorce is pending? and can they continue totlist the house while they have a lawsuit bending on it?e
The divorce has no effect on them or their rights since they are not a party to it.

They can list the house under these facts because the lawsuit isn't really about the title to the house.


If you would like any additional information or have more questions please don’t hesitate to ask but please do so my clicking on the Reply to Expert tab.

We work for Positive Ratings, please click on one of the top three ratings or one of the Smile Faces, as this would be appreciated. We have recently implemented a new rating and feedback system. Please be aware that you are rating my courtesy and service as a professional, and not necessarily whether you like the information that you are receiving. Please bear in mind I can’t control what the law is and whether it helps you, I can only tell you what it says, and I assume you want truthful information.

PLEASE DO NOT use the rating system to ask for more information or in an attempt to tell the website that you didn’t like the substance of the answer as it gives a NEGATIVE rating to me personally if your rating is one of the lower two.

I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Be very careful about looking at other internet sites that just post generic information without any inquiry into your facts because often those answers are dated, wrong, or wrong as applied to your facts. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.

Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.
Dwayne B.
Dwayne B., Attorney
Category: Estate Law
Satisfied Customers: 34,296
Experience: Estate Law Expert
Verified
Dwayne B. and 87 other Estate Law Specialists are ready to help you
Ask your own question now
Customer reply replied 5 years ago
So are you saying there is a way to ask as part of the filing for divorce to allow those assets that are part of the closing to continue to be freed up for that purchase and if the court denies that request, your defense can be the impossibility of performance?
Correct. The court may allow the contract to continue since it was a contract agreed to prior to the divorce and may subject you and your spouse to additional liability and an additional lawsuit if it does not allow the transaction. If the court doesn't allow it then there is a defense that may work.


If you would like any additional information or have more questions please don’t hesitate to ask but please do so my clicking on the Reply to Expert tab.

We work for Positive Ratings, please click on one of the top three ratings or one of the Smile Faces, as this would be appreciated. We have recently implemented a new rating and feedback system. Please be aware that you are rating my courtesy and service as a professional, and not necessarily whether you like the information that you are receiving. Please bear in mind I can’t control what the law is and whether it helps you, I can only tell you what it says, and I assume you want truthful information.

PLEASE DO NOT use the rating system to ask for more information or in an attempt to tell the website that you didn’t like the substance of the answer as it gives a NEGATIVE rating to me personally if your rating is one of the lower two.

I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Be very careful about looking at other internet sites that just post generic information without any inquiry into your facts because often those answers are dated, wrong, or wrong as applied to your facts. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.

Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.
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