Where will House Proceeds Go?


#1

Hi, I own a house (only name on mortgage and deed). I lived there with my girlfriend, and when we broke up, I signed a statement stating I would give her the net proceeds of the house when it sold (she moved out). After unsuccessful attempts at selling, I stayed in the house. I eventually married, and my wife and I live in the house. I did refinance the house, and my wife is on the deed. So, my question is, will I still owe all the proceeds of the sale of the house? There was basically no equity in the house, but will continue to grow as we live there. Thank you in advance.


#2

Have you talked to your ex-girlfriend and tried to modify the contract? If you put the house in you and your wife’s name, you essentially made the house a gift to the marriage. That said, if the contract is valid, you still have a contractual obligation to give the proceeds to your ex-girlfriend.