Net Proceeds


#1

My separation agreement states that my ex get all the net proceeds of the sale of our home. It deems net proceeds to constitute gross receipts resulting from the sale of the premises less the usual expenses of sale. I have been paying half the house payment since separation in April of 2010. I think that I am entitled to half of the remaining balance of the escrow account as it is not net proceed but an account in which I have been making half payments. Is that correct? Also the SA stated we file jointly for our 2010 taxes but separately for 2011. She also thinks the interest paid is a net proceed and I am not entitled to claim half the interest. I made half payment every month leading upcoming sale in a few weeks.


#2

Yes, for you to receive ½ the amount remaining is escrow is reasonable. Interest paid on the mortgage is not part of the proceeds- though if you cannot agree on who is to claim the deduction for the mortgage the person living in the home as their primary residence can deduct it.