My Spouse Sold our Home Without Telling Me; What Can I Do?

One of the weirdest situations we deal with in divorce is when one spouse sells the marital home without telling our client.

The situation almost always goes something like this. Spouse sells home to a family member or close friend. Spouse sells home for cost, even though it’s worth more. Family member or friend then sells home for way more than he bought it, and then “pockets” the money.

I put pockets in quotation marks because the person selling the home isn’t keeping the sale money. Nope, what that person is doing is kicking back 90% of it to the spouse who sold them home.

See, this situation is a scam. In essence, the spouse sells the home at cost because if he sold it to stranger for fair market value, our client would be entitled to half of the equity in the divorce.

So, he sells it for no gain with the understanding that his buddy will sell the home for a big gain, cash out the equity check from the title company, and then give the lion’s share of the money back to the spouse. Magically, that money never makes it in to a bank account, so you can’t trace it and you can’t get to it in divorce.

Luckily, we don’t see this that often, but we do see it.

So, how do you deal with this?

The real question becomes: how do you deal with a situation like this?

Best way we’ve found is to file something called a motion for fraudulent transfer.

The point of the motion is to reverse the sale of the home and get it back in to the marital estate so it can be sold at fair market value during the divorce.

This motion comes up under the Utah Fraudulent Transfer Act (click here to read the Act), and usually requires you to file a separate civil case. But when it comes up in divorces, most judges will deal with it as part of the divorce case.

Another way we deal with it is to file a motion and let the Court know what’s happened, determine what equity existed in the home at the time of the fraudulent sale, and ask for 50% of that amount.

This second way is a little dicey because you’re chasing money, and that’s never as good as simply taking money from a home sale.

Bottom line: move quickly

If you’re in a divorce situation and you find out your spouse sold your home, you need to move quickly. If you wait to deal with the problem, it will probably be too late, and that big gain from the subsequent sale of the home will be gone forever.

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Mack

I would give them 10 stars if I could. Clay was professional and super organized. He took the time to explain everything. I would highly recommend him for any family law needed. Melanie was a godsend. She not only kept me continually informed of the progress, she sent texts of encouragement and support throughout the entire process. I would give her 100 stars for going above and beyond to make this experience less stressful. Her encouragement and genuine caring were comforting and calming. The entire staff at Brown Law are on your side and if you are lucky enough to get Clay and Melanie on your team you will not be disappointed. Thanks! Mack M.

Response from the owner:Wow, thank you so much. Melanie is great. Glad she helped you so well.

Alex Rogers

Nathaniel was an incredible partner throughout the divorce process. He was organized, responsive and respectful of my wishes while simultaneously giving me guidance and advice. I would recommend him to anyone.

Christie Cisneros

I couldn’t have made it through my divorce without Clay and his team! I am forever thankful for the hours and time spent with me to help navigate an extremely difficult time in life. They’re reliable, knowledgeable, and know how to get things moving in an efficient manner. Nothing but good to say here!!

Halie Bates

Working with Daniel Young at Brown Family Law was a truly positive experience during one of the most difficult times of my life. From the start, Daniel was knowledgeable, compassionate, and incredibly responsive.
If you need a family law attorney who combines expertise with empathy, I cannot recommend Daniel Young enough. He is a true advocate and a credit to Brown Family Law.

Jessica Lance

Nathaniel and Carren have been absolutely incredible to work with. They kept me informed and in the loop throughout each step of the process. They always answered every question I had in a very quick and timely manner. I could not recommend them more.

Amy Christensen

This 5-star review is for Nathaniel Garrabrandt at Brown Family Law. Nathaniel was just what we needed. He helped guide us with a level of professionalism, efficiency, and genuine care that made a real difference during a challenging time. He is always thoughtful and respectful, and he never makes you feel like just another case. His communication was clear (with regular check-ins), his advice was solid and uncomplicated, and I always felt that he had his client's best interest at heart as he made suggestions. I’m grateful to have had such a capable and compassionate attorney to work with. You hope you never need these kind of services, but when you do, you want the best... and someone with high integrity. Nathaniel truly deserves all 5 of these stars, in every way.

Kenzie Murphy

Russell Yauney was my attorney at Brown Family Law. Throughout the process, Russell and his paralegal Conor, were extremely helpful and patient. They were highly responsive, thorough, and most importantly: did not make me feel insignificant or embarrassed for asking clarifying questions. Russell made himself available and whenever he wasn't, Conor was. The Friday Phone Calls were reliable and I knew I could expect an update each week. The firm's texting abilities also made it easy to send a quick question/concern if I ever needed it. Russell was a fantastic attorney and guide to have throughout my situation. I highly recommend this firm.