kept DVC after divorce, but ex is now filing for bankruptcy

[SueInBoston]

So I divorced 6 years ago, at that time we agreed to keep DVC "as is" jointly and we will alternate annual usage and dues (no loan) for adult kids. He now has to file for bankruptcy, what can I do to protect DVC, he is willing to sign it over to me? Can I do a quit claim deed?

Thanks

 

[Robbie Cottam]

Yes a quit claim is pretty easy,
however he if he has filed for the bk already he cannot transfer it

also if he transfers it to you a creditor may still want to come after it as an assets

however, most bankruptcy course look at time shares as liabilities

if you had an attorney for your divorce get the, involved quickly
if not you might want to talk to one

 

[Robbie Cottam]

You can file Your own deed with the OC comptrollers web site
pit is about 10 dollars per page so try to keep it short

you can get you legal description from your current deed

 

[SueInBoston]

Thank you both for the quick response, so I have a quit claim deed on my home that he signed over to me, can I use same wording and just change the property? Or does each state's wording differs?
I want to do this quick before he files bk.

 

[Robbie Cottam]

i guess …. I honestly would take your DVC deed copy it….

transfer from you and him as seller to you as buyer for 1 dollar

have it signed, notarized, and double witnessed

do you know how to search you deed on the comptrollers website

 

[SueInBoston]

i guess …. I honestly would take your DVC deed copy it….

transfer from you and him as seller to you as buyer for 1 dollar

have it signed, notarized, and double witnessed

do you know how to search you deed on the comptrollers website

Yes, I found the deed and I actually have the original as well. Thank you so much.

 

[Ms Bibbidi]

So I divorced 6 years ago, at that time we agreed to keep DVC "as is" jointly and we will alternate annual usage and dues (no loan) for adult kids. He now has to file for bankruptcy, what can I do to protect DVC, he is willing to sign it over to me? Can I do a quit claim deed?

Thanks

A creditor or bankruptcy trustee can look back in time and set aside transfers that were done to avoid the rights of creditors.

Your remedy is to make a fair market deal with him and buy out his share. Get a regular deed, not just a quit claim deed. Get a Florida lawyer to make it happen correctly.

It may trigger Disney’s right of first refusal too.

Edited to add: I said a "fair market" deal. That means you would have the property appraised by a Florida licensed property appraiser. You would have copies of similar recent closed transactions that establish a fair market price. I did not mean a gift, or $1 or any other sub-market value. A creditor would not be damaged if he received all of the cash that the property was worth. Then the value of the property would still be in his bankruptcy estate. You both would need proof that the price was full market price. Then, there is no fraud. You need an attorney to handle drafting the deed and filing it as well as making sure all other parts of the transaction were done legally and competently.

 

[Ms Bibbidi]

If the property goes through bankruptcy you can also make an offer there to buy it from the bankruptcy estate. Otherwise you may be co-owner with a stranger or a business entity.

Before he files bankruptcy it is his estate. After he files bankruptcy it is the bankruptcy estate and the bankruptcy trustee steps in and handles the estate for the benefit of the creditors. But because the court can look back in time, since he has already indicated a bankruptcy is likely, you need to follow the bankruptcy rules on anything you do with this property. It has to pass the court's scrutiny. You can do it, but it must be on the up-and-up.

 

[cedricandsophie]

This sounds like a situation you don’t want to screw up. Get a florida lawyer who knows both divorce and real estate law.

 

[SueInBoston]

Thank you all, fortunately I bought legal insurance through work. I will contact a lawyer today. After the divorce, every year at benefit renewal time, I question myself if that legal insurance is really necessary, this situation answered it and I will continue to buy legal insurance.

 

[Narcoossee11]

Honesty, you have an issue. Get your lawyer involved NOW.

 

[Brian Noble]

can I use same wording and just change the property? Or does each state's wording differs?

Not only is every state different, but the wording on the deed for the property matters and varies from property to property. This is not a DIY situation, and I would involve a competent professional.

I will contact a lawyer today.

Good call.

 

[drusba]

Getting a lawyer is the way to go. You have more than one issue. Not yet mentioned is the actual legal status of the ownership. It is likely that the deed you have states it was issued to your former husband and you as husband and wife. That means the deed was one establishing a tenancy by the entirety, a form of joint tenancy ownership under which creditors of one of the owners cannot pursue a sale of the property to pay the debts because that is allowed only if the husband and wife are both responsible for the particular debt.

However, the divorce automatically ended any tenancy by the entirety because it can apply only to married couples. Under Florida law (which governs ownership issues if you have any WDW or VB resort ownership), upon divorce, and if nothing was done to change ownership and the deed as part of the divorce, the ownership automatically became tenancy in common, essentially the worst form of joint ownership a couple can have for property they jointly own, because creditors will likely have the right in the bankruptcy court to seek, if needed to recover any of your former husband's debts, the forced sale of the property to get the value of his share in the property.

And. as noted above, you cannot now just have him transfer his ownership interest to you via a quit claim deed. Transactions like that, done in anticipation of a party filing bankruptcy, can be invalidated by the bankruptcy court, leaving the property subject to be sold, if necessary for payment of his debts.

 

[Yankee626]

i guess …. I honestly would take your DVC deed copy it….

transfer from you and him as seller to you as buyer for 1 dollar

have it signed, notarized, and double witnessed

do you know how to search you deed on the comptrollers website

Wouldnt DVC have right of first refusal if you sold it for a dollar ?

 

[CarolMN]

Wouldnt DVC have right of first refusal if you sold it for a dollar ?

Yes, plus as previously posted by others, if spouse has already filed, the asset disposition is under jurisdiction of the bankruptcy judge. Advice to transfer is a recipe for a big problem/hassle later. Best advice is to consult a lawyer.

 

[Robbie Cottam]

Wouldnt DVC have right of first refusal if you sold it for a dollar ?

No-
DVC will issue a waiver after it has been recorded if you transfer between family.

I’m not sure how close family has to be but spouse or ex spouse, parent child, are a non issue

 

[Nursemanit]

Get a different lawyer than the one that allowed this in the first place. One rule in a divorce- if you don't have to feed it, joint custody or ownership is always a bad idea.

 

[Robbie Cottam]

Get a different lawyer than the one that allowed this in the first place. One rule in a divorce- if you don't have to feed it, joint custody or ownership is always a bad idea.

even if you do feed it joint custody is a bad idea….
if you could have gotten along well enough to coparent you would still be married

 

[CarolMN]

DVC will issue a waiver after it has been recorded if you transfer between family.

My understanding is that the transfer would have to be gratuitous for that to apply, and there would still be the bankruptcy issue.

We will to agree to disagree on this. Sounds like the OP has already decided to get legal advice, anyway.

 

[Robbie Cottam]

The op did say give.

They will also do it as the result of a court order.