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

[drusba]

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

DVD generally waives its ROFR for any gratuitous transfer, to a relative or otherwise. But for a transfer of ownership rights that actually involves money being paid for the transfer, then, even if it is a relative, there is no such automatic waiver (and, by the way, the former husband is no longer a relative). Nevertheless, DVD likely has no ROFR right in relation to a transfer of ownership interests made by one of the joint owners of the property to another of the joint owners.

However, the worst thing that could be done right now is a transfer under which the former husband gives up his interest for a payment from the OP for some agreed to value. That transfer may be voided by the court after bankruptcy is filed and the creditors may still be able to seek a forced sale, and the only share of the sale proceeds that would go to the OP is the amount representing her half share. In other words, she would be out the payment made to the ex-husband for a half share and possibly recover that amount, but that means her total compensation for the entire loss of the property is zero (or even less than zero if the sums paid in the forced sale are less than double the sums she paid to the ex-husband). To actually recover amounts paid to the ex-husband, she might have to file her own claim in the bankruptcy court (and, to be able to get recovery, possibly stand in line behind the interests of other creditors, and hope the ex-husband did not just spend the money she paid him before the bankruptcy was filed.

 

[Robbie Cottam]

DVD generally waives its ROFR for any gratuitous transfer, to a relative or otherwise. But for a transfer of ownership rights that actually involves money being paid for the transfer, then, even if it is a relative, there is no such automatic waiver (and, by the way, the former husband is no longer a relative). Nevertheless, DVD likely has no ROFR right in relation to a transfer of ownership interests made by one of the joint owners of the property to another of the joint owners.

However, the worst thing that could be done right now is a transfer under which the former husband gives up his interest for a payment from the OP for some agreed to value. That transfer may be voided by the court after bankruptcy is filed and the creditors may still be able to seek a forced sale, and the only share of the sale proceeds that would go to the OP is the amount representing her half share. In other words, she would be out the payment made to the ex-husband for a half share and possibly recover that amount, but that means her total compensation for the entire loss of the property is zero (or even less than zero if the sums paid in the forced sale are less than double the sums she paid to the ex-husband). To actually recover amounts paid to the ex-husband, she might have to file her own claim in the bankruptcy court (and, to be able to get recovery, possibly stand in line behind the interests of other creditors, and hope the ex-husband did not just spend the money she paid him before the bankruptcy was filed.

I don’t know if you saw the OPs post but her attorney is going to file the deed.

And in my experience when one of the owners remains the same, Disney waives the ROFR and does not treat it like a sale.

 

[Ms Bibbidi]

It must be close to Halloween! Because the bad legal advice here in the comments is really scary.

Bottom line is OP needs to retain and consult with her own Florida licensed attorney. She said she is going to do that.

 

[keishashadow]

OP sorry to hear of this nightmare. Good luck

 

[starry_solo]

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.

do not file any deed whatsoever.
the two of you could be caught up in bankruptcy fraud if you do

 

[Ms Bibbidi]

do not file any deed whatsoever.
the two of you could be caught up in bankruptcy fraud if you do

There are perfectly legal ways of handling this. How about if we let her Florida licensed attorney handle this and advise OP? She said she was going to hire an attorney.

 

[RoseGold]

Terrible result from the divorce. No reason her name should have stayed on the deed. Someone should have kept it in the divorce, just like a house or a boat or a car or whatever and bought out the other. If you couldn't work it out, it should have just been sold to clear the title and take the cash. Joint real estate venture? What on earth.

This is why. Now you have a real mess, over a timeshare. And this is why I don't understand why anyone titles this stuff with a bunch of adults together, and divorce is best case scenario because it actually has a judge to resolve this. What a mess. Absolutely time for lawyers. I'm wildly guessing that you will have to buy her out, which is what should have happened in the first place.

 

[RoseGold]

however, most bankruptcy course look at time shares as liabilities

Absolutely terrible advice, dangerously terrible. This is a five figure asset and someone going through a very serious proceeding with crimes associated with transferring assets. Why do you keep giving such bad legal advice? You obviously have no idea what you are talking about.

 

[SueInBoston]

I want to give an update:

No crime has been committed!!

The divorce was amicable, at that time, that was the best decision for the DVC contract, it was agreed by both parties, our attorney and the court approved it.

I retained an attorney in Orange County, FL and he is handling the DVC deed transfer.

Ex went to credit counseling, thanks to Covid relief, they are able to negotiate his credit card interest rates and put him on a payment plan, so bankruptcy avoided.

 

[mistysue]

I want to give an update:

No crime has been committed!!

The divorce was amicable, at that time, that was the best decision for the DVC contract, it was agreed by both parties, our attorney and the court approved it.

I retained an attorney in Orange County, FL and he is handling the DVC deed transfer.

Ex went to credit counseling, thanks to Covid relief, they are able to negotiate his credit card interest rates and put him on a payment plan, so bankruptcy avoided.

Sounds like you got just about the best outcome you could from a stressful situation like this. I'm so happy this isn't working out to be the nightmare it sounded like at first!

 

[Ms Bibbidi]

I want to give an update:

No crime has been committed!!

The divorce was amicable, at that time, that was the best decision for the DVC contract, it was agreed by both parties, our attorney and the court approved it.

I retained an attorney in Orange County, FL and he is handling the DVC deed transfer.

Ex went to credit counseling, thanks to Covid relief, they are able to negotiate his credit card interest rates and put him on a payment plan, so bankruptcy avoided.

I don't think anyone said a crime had been committed. But transferring property on the eve of an imminent bankruptcy is seriously problematic.
So glad to hear this news. May the future be kind to both of you.

 

[Maistre Gracey]

I don't think anyone said a crime had been committed. But transferring property on the eve of an imminent bankruptcy is seriously problematic.
So glad to hear this news. May the future be kind to both of you.

Wait… did you not say let the Florida attorney handle it?? Well, apparently they did.

 

[bumbershoot]

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

I have only heard of this with a gratuitous transfer.

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

Riffing on your comment, nothing to do with this thread...Definitely agree on that one. Attempting to "coparent" with someone who proved himself to be a massive liar who doesn't know what the word "communication" means has been the hardest thing I've done. If it could have been done gracefully we wouldn't have had the issues he ended the marriage over (ignoring the person who was talking in his ear and is now is sig other).

That said, we have a joint checking account still for support and we left the house stuff very mushy and weird until a relative helped me out. All the trust was on his side, which makes sense since I'm trustworthy. The DVC, however, was transferred gratuitously during the divorce.

Terrible result from the divorce. No reason her name should have stayed on the deed. Someone should have kept it in the divorce, just like a house or a boat or a car or whatever and bought out the other. If you couldn't work it out, it should have just been sold to clear the title and take the cash. Joint real estate venture? What on earth.

FWIW we didn't do that and it worked out fine. I wasn't on the house deed or mortgage. We put me on the deed and he quit claimed it so I was on the deed then trusted me with the mortgage. But I'm trustworthy, decent with money, and wasn't the one with someone in the wings who would sway me from being a decent human, so it worked out.

Ex went to credit counseling, thanks to Covid relief, they are able to negotiate his credit card interest rates and put him on a payment plan, so bankruptcy avoided.

This is excellent.

I retained an attorney in Orange County, FL and he is handling the DVC deed transfer.

Interesting.

 

[RoseGold]

We put me on the deed and he quit claimed it so I was on the deed then trusted me with the mortgage. But I'm trustworthy, decent with money, and wasn't the one with someone in the wings who would sway me from being a decent human, so it worked out.

The issues with joint deeds don't necessarily have anything to do with whether the other person is a decent human. The most common reason for bankruptcy in the US is medical bills.

There are a ton of situations that make having multiple adults on a deed messy, which have nothing to do with moral failings. Death, being sued, Medicare, applying for college financial aid, another divorce, I can keep going.

 

[Ms Bibbidi]

FWIW we didn't do that and it worked out fine. I wasn't on the house deed or mortgage. We put me on the deed and he quit claimed it so I was on the deed then trusted me with the mortgage. But I'm trustworthy, decent with money, and wasn't the one with someone in the wings who would sway me from being a decent human, so it worked out.

I suspect he trusted the mortgage lender to foreclose on the house if you did not pay his mortgage. Putting your name alone on the title did not expunge the mortgage lender's, or their subsequent successor's or assign's, purchase money security interest in the property. In other words, the mortgage company's lien on the property still exists even though you never signed the mortgage.

Also, by paying the mortgage on time and in full every single month, you are giving him a nice credit rating. However, it is not helping your credit rating.

He is also still personally liable on the mortgage as well. It's in the fine print and is universal these days.