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Litigation

BY ALM Staff
March 18, 2004

Costs Related to Sale of Marital Residence

Under Louisiana law, after a divorce, the parties become “co-owners in indivision” of the marital residence, entitling each to reimbursement of fees and other costs from the other co-owner in proportion to the percentage of ownership. Gore v. Gore, Number 2003 CA 0491, Louisiana Court of Appeal, First Circuit, 2003 0491, Dec. 31, 2003.

The parties were divorced by judgment on Oct. 6, 1999. Thereafter, on Oct. 30, 2001, the parties agreed, inter alia, to sell the marital residence in order to satisfy other marital obligations. On May 17, 2002, the husband moved to compel the sale of the marital residence, for an order that the residence be vacated, for contempt and other relief. The trial court ordered the wife to cooperate immediately in signing any documents necessary to effectuate the sale of the marital residence. The trial court further ordered the wife to pay one-half of the closing costs related to the sale of the residence. The wife was also found in contempt of court and ordered to pay the husband's attorney's fees and court costs related to the husband's motion to compel the sale of the residence. The wife appealed. The appellate court held that the wife was required to pay one-half of the closing costs. After the parties' divorce, the parties' became “co-owners in indivision” of the marital residence, and under Louisiana civil law, a co-owner in indivision is entitled to reimbursement from the other co-owner of costs in proportion to each owner's percentage of ownership. Therefore, the wife was required to pay one-half of the closing costs related to the sale of the marital residence, even though the husband had indicated a willingness to pay for all of the closing costs in other documentation during the parties' matrimonial litigation. The appellate court held that the husband was not entitled to attorney's fees because, as required under Louisiana law, the lower court failed to state any basis for its award.

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