Navigating Challenges: Answers to Common Real Estate Questions During Divorce

Dividing real estate during a divorce can raise many questions and concerns. At AFL, we understand the complexities involved and are here to provide referrals of real estate professionals (we can’t do everything!) to provide clients with clarity and guidance. Below, we address some of the most frequently asked questions about selling and conveying real estate through divorce in Minnesota, helping you navigate the process with confidence.

When real estate is awarded to one spouse, what’s the process to convey title? How easy is that?

The divorce decree typically specifies which spouse is awarded the real estate. In the past, this decree alone was often sufficient to transfer title. However, today, in divorce cases, a Summary Real Estate Disposition Judgment (SREDJ) is a cost-effective alternative to Quit Claim Deeds for transferring property titles. Drafted by the attorney and signed by the judge after the Judgment and Decree, the SREDJ transfers title to all properties, even across different counties, with only one recording fee per parcel. Unlike Quit Claim Deeds, which require a deed per parcel, the former spouse’s signature, and recording the Judgment and Decree, the SREDJ avoids extra fees and keeps private information out of public records.

Is the Quit Claim Deed & SREDJ process easy, and are there costs involved?

Yes, executing and recording a Quit Claim Deed is a straightforward process. The form itself is simple to complete, and recording it with the county involves only a nominal fee. Importantly, under Minnesota Statute 287.22, there is no state deed tax for this type of transfer, which helps keep costs low for divorcing spouses.

While there is no filing cost for the SREDJ, there is the attorney expense to file it and a $18 cost for certified copy and $46 to record it (also the same $46 to record a QCD) with the county. 

How are high-conflict issues like protection orders or no-contact orders handled during the real estate process?

One of the key advantages of working with a professional Realtor in these situations is their ability to communicate effectively with all parties involved. Even when protection or no-contact orders exist between spouses, the real estate agent can communicate individually with each spouse and their attorneys. This ensures the real estate process continues smoothly while respecting legal boundaries and maintaining compassion and understanding throughout.

Does the real estate team cover extra services like cleaning, donation pickups, and debris removal?

AFL’s referred real estate teams strive to absorb as many additional services as possible within their commission structure. This often includes cleaning, debris removal, and donation pickups to ease the burden on sellers. If sellers require extra services beyond what the budget allows, the team may cover these costs upfront and arrange for reimbursement after the home sells, ensuring sellers receive comprehensive support.

Should the house be awarded to one spouse before the sale, or is it better to sell first?

Both approaches are valid and depend on the specifics of the divorce. Whether the home is awarded to one spouse before sale or sold jointly, the real estate process remains similar. Sometimes, awarding the home to one spouse depends on trust in the property’s valuation or other logistical factors. If there are concerns about valuation or financial balance, it may be preferable to sell the home first. Listing the home on the open market provides the most accurate reflection of its value.

Should any work be done to the property before listing it for sale?

Keeping things simple is often the best approach. Basic improvements such as paint touch-ups, patching minor dings and dents, cleaning, or replacing worn carpet can significantly enhance the home’s presentation. These small efforts are easy to manage and can make a big difference in attracting buyers. The most impactful improvements for resale value, however, are thorough cleaning and staging, which AFL’s real estate referrals typically handle for sellers.