Escrow refund


#1

Hi I recently received a refund for escrow in my name only and insurance refund in both of our names. The house was titled in both of our names however I paid all mortgage taxes and insurance on the house. The mortgage and escrow account were in my name only. The house was given to ex-spouse, so who should get the escrow? Since it was in my name I have deposit to the bank. However ex-spouse wants all of escrow and the insurance refund. Wants a check written out to her. Separation Agreement is not clear except that the house assets go to her. Should I defend myself if this goes to court?

Thanks


#2

I doubt that the amount of the check is enough to warrant fighting over it in court. Without reviewing the agreement, it’s hard for me to give advice, but it would also seem that if the escrow accounts were not included in the agreement that they would still be subject to division by the court either through equitable distribution or partition if the divorce is already finalized.


#3

Separation agreement states all proceeds of house would go to her upon sale. So she sold the house to her mother in 24 hours after signing separation agreement. The amount is under the small claims agreement. However they are claiming breech of contract. Separation agreement says when there is a breech the other party must pay the lawyer expenses. However I think proceeds and escrow\insurance refunds are separate items? But there no mention of distribution of this , other then each party is responsable for there own mortgage escrow and insurance on respective house. Since she only had house for a day I don’t think any of this applies for her. Should I offer half of escrow to her lawyer? Since she refuses to sign insurance check unless she gets entire refund is there anything I can do? I am currently working with her lawyer, and do not have representation myself. My previous console told me escrow was mine to keep before I signed the agreement. Then after I signed he suggested I just give it to so you can get her off you back. I can send separation agreement if needed.


#4

I think she likely has a strong argument that the escrow funds are a part of the proceeds from the sale of the residence. If she’s not willing to negotiate, you have to ask yourself how much is it worth to argue over these funds in court, especially with the chance that you may be ordered to pay her attorney’s fees in the process.


#5

This contradicts what a real esate lawyer has on justanswer. Maybe this is a grey area. I also just had phone call from a Raleigh lawyer who suggested a 50/50 split.


#6

I’m not sure why you think that the advice you are getting from other lawyers differs from that which I gave earlier. My point was that it doesn’t sound like there is a definitive answer since the escrow account isn’t covered by the agreement, and if she won’t agree to a 50/50 split of the assets, I’m doubtful that it is worth the expense of court.