So my wife is buying me out of the home. Property taxes are due March 1st (55%) and then August 1st (45%), and in our state, they are collected in arrears. This means that the tax bill for 2025 will be for the 2024 tax year. What do you do when the divorce is finalized before March 1st and the quit claim deed is done? Would I then owe taxes for both the 2025 tax bills on the house? Or once I’m out, I’m out? If the divorce is finalized before March 1st, is that just how it is? My lawyer says I owe nothing, while hers says I would owe the taxes. I’m trying to get an idea of what is generally done since we could agree on anything to keep it out of court and avoid a judge deciding.
If the two of you sold the house, the taxes in arrears would be collected from you as part of the closing and put into escrow for the new owners. It is reasonable that buying someone out be handled in the same way for that portion.
Call the tax authority and find out what the upcoming tax would be for the year and calculate half. Then take the same amount and prorate for the time you still owned the home. For example, if the 2024 tax year is $1,000, you would be responsible for $500, and if you only lived in the home for a month, that would be about $84. You should pay the tax authority directly and keep the receipt. The total would be $584 for the remaining 2024 taxes, and all of 2025 would be your ex’s responsibility.
That’s right; you can agree to anything. I would suggest offering to cover your portion of property taxes up until the date you moved out and had to cover your own housing expenses, whenever that was.
The amount is part of the negotiations between the two of you. What were the discussions or calculations for the buyout amount? It’s fair to contribute to the 2024 property taxes proportionally based on your ownership in that year. The date you lived there, date of transfer, or date of valuation for the buyout might all be relevant to the discussion.
I think splitting it 50/50 is reasonable.
Seems like you could agree to split the upcoming taxes 50/50 or proportionate to your incomes.