What Happens to Home-Sale Proceeds After Closing?
Quick answer
Net proceeds are disbursed by the closing agent according to the settlement agreement, court order or joint written instruction. Where distribution is disputed, funds may be held in escrow or in an attorney trust account until the issue is resolved.
The closing agent follows written instruction. That is why the distribution language should be settled before the closing date, not during it.
Attorneys typically provide the disbursement direction; the real estate professional's role is to keep the transaction on schedule and everyone informed.
Every divorce is different and every property is different. Legal questions about ownership, entitlement and court requirements should be directed to your attorney.
Key points
- Written disbursement instruction should exist before closing.
- Escrow is available where distribution is unresolved.
- Final figures come from the closing statement.
- Tax questions belong with a CPA.
Educational information only. This article does not provide legal, tax, financial, mortgage or engineering advice. Legal questions should be directed to your attorney.
Next step
The Divorce Is Complicated Enough.
The Real Estate Process Doesn't Have to Be.
When the marital home becomes part of a divorce, the goal isn't to create another fight. It's to create a clear, professional process for evaluating, preparing, marketing and selling the property.
One Home. Two Futures. One Clear Process.