MN Divorce Real Estate: Problems with Bookkeeping at the Closing Table

Selling A Home
Written By Shannon Lindstrom

One of the beauties of selling a house in a divorce dissolution matter is that the proceeds can be used to pay off debts.  

It can seem convenient to supply an accounting of debts and have the title company cut disbursement checks directly to those owed — but that can backfire, if even allowed. There can be requests for disbursement of proceeds at closing for all sorts of things, such as to pay off delinquent support, credit card balances, attorneys’ fees, car loans, — even court-appointed psychologist fees and private school tuition.

The first issue with handling these kinds of bookkeeping matters at the closing table: Verbiage in court orders can be issue, since the final balances of the expenditures can change .

Here are a few examples: 

●       Petitioner shall reimburse Respondent for 50% of the cost of the minor child’s summer camp fees.

●       Respondent shall reimburse Petitioner for their contribution of the mortgage payment from the beginning of the year until the day of closing.

●       Petitioner received an insurance claim in the amount of $17,000 from a flood on the property. Respondent shall receive reimbursement of their share of restoration repairs made, plus 50% of the balance of the insurance payout after receipts are provided.

In each of these scenarios, the court order indicates how reimbursements are to be calculated, but can fall short of providing the exact figures for debits and allocation between the parties. The title company needs instructions that are clear, accurate and right up to the minute.

The second issue is that expenses to be paid at closing should be limited to those incident to the sale itself. Things like paying contractors who performed work on the property for negotiated repairs or delinquent HOA dues are usually okay. Things like paying off a car or credit card are not okay. Title companies are usually does not want to take on the responsibility or liability of these third-party payments and it may be against their policy. It’s best to check with the title company’s pertaining to their policy concerning third party payments. 

If you have any questions about selling a home during a divorce or post divorce, please feel free to reach out to me. I’m here to help.

Shannon Lindstrom, Realtor®, CDRE™, MILRES, MRP, VCA
RE/MAX Results
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
www.MinnesotaMilitaryVeteranRealEstateAgent.com
www.MNDivorceRealEstateExpert.com 

Shannon Lindstrom

Shannon Lindstrom is a Certified Divorce Real Estate Expert (CDRE®) and Realtor® with RE/MAX Results who specializes in the sale of residential property in divorce and family law matters throughout Minneapolis, Saint Paul, and surrounding communities across Minnesota. With more than 22 years of residential real estate experience in the Twin Cities, Ms. Lindstrom serves as a trained neutral — not an advocate for either spouse — bringing a disciplined, process-driven approach to what is often the most consequential asset in a divorce.

Ms. Lindstrom earned her CDRE® designation through the Ilumni Institute in 2023, is continuing her training through the CDRE® Master Program, and completed Collaborative Divorce training through the Collaborative Law Institute of Minnesota in 2026. This training equips her to work fluently across litigated, mediated, and collaborative matters—from low-conflict, cooperative sales to high-conflict, court-ordered dispositions—and to integrate seamlessly with attorneys, financial neutrals, mediators, mental health professionals, and the broader divorce team.

Her work is distinguished by three strengths family law professionals consistently rely on: clear, defensible documentation that holds up through negotiation, mediation, and trial; calibrated pricing and listing strategy grounded in current Twin Cities market data and built to withstand opposing scrutiny; and a calm, structured communication protocol that reduces friction between spouses, manages occupancy and showing logistics, and keeps the transaction on the court's timeline rather than the conflict's. Whether a file involves court-ordered sales, delayed cooperation, valuation disputes, or contested listing decisions, she approaches every matter with neutrality, precision, and steady professionalism.

With specialized training in divorce real estate and collaborative methodology, and a reputation for composure under pressure, Ms. Lindstrom is a trusted residential real estate resource for attorneys and divorce professionals handling Minnesota family law matters.

 

 

https://www.MNDivorceRealEstateExpert.com
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