- 3 - presumably they were jointly liable for the financed amount. Petitioner and her former spouse used the townhouse as their residence for a while, but for the majority of the time that they owned it, the townhouse was held for rent or rented to others. In 1994, while the divorce proceeding was pending, petitioner’s former spouse suggested that they sell the townhouse. Petitioner agreed, subject to her understanding that she would receive one-half of the proceeds from the sale. On July 15, 1994, the townhouse was sold for $88,000. At that time petitioner lived in Jacksonville, Florida, and petitioner’s former spouse lived in Maryland. Neither petitioner nor her former spouse attended the settlement. The documents necessary to effectuate the transaction were mailed to petitioner, who signed them and returned them by mail to the settlement attorney. The sale of the townhouse produced a gain of $54,998. Although the details of the settlement have not been provided, we assume that portions of the proceeds from the sale of the townhouse were used to satisfy any outstanding encumbrances on the property and to pay selling and/or settlement fees. In any event, from the $88,000 selling price, petitioner and her former spouse netted $47,946.73 in the form of a single check payable to both (the joint check). Petitioner wanted separate checks issued, but for reasons not fully explained, the joint check was issued.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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