• Immediate Sale. Real Estate may be placed immediately on the market for sale with the parties dividing the net proceeds realized from the sale. "Net proceeds" are generally defined as the amount remaining after the following costs have been subtracted from the sale price or appraised value of the homestead:

o Expenses of sale, which shall mean all the usual and customary expenses of sale such as attorneys' fees, points, broker's commissions, assessments, expenses of updating the abstract, and other normal costs of closing;

o Any secured debt including any Mortgage, second mortgage, home equity loan or secured line of credit;

o A credit payable to either party for the amount of principal reduction made by him/her on the mortgage up to the date of the sale.

• Sale in Future. The parties may agree to sell the real estate at some point in the future. This may be agreed upon to allow the party occupying the real estate to attempt to repair credit and ultimately refinance the mortgage. It may also be agreed upon to allow any minor children to remain in the homestead until some event in the future. Without an agreement of the parties or some showing of hardship, a Court is unlikely to require the party that is not occupying the homestead to wait to receive his/her equity until the children are no longer minors.

If one party occupies the homestead, that party will generally be required by the Court to pay any secured encumbrances against the homestead. That requirement by the Court, however, is not binding on any creditors. As a result, if the person with occupancy fails to pay, and the other party is still listed on the mortgage, that person's credit may be affected and the creditor may seek collection against either party. As a result, the party that is not occupying the homestead will want to include language in the agreement of the parties and the final order which protects his/her credit rating in the event that the occupying party fails to pay the debts secured against the real estate. There are many ways that this can be accomplished including requiring that the home be sold should the occupant fall behind on the mortgage, or allowing the party without occupancy to make payment to protect their credit rating and to seek reimbursement plus fees and costs against the other party.

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