Monday, November 19, 2007

Receivers and Divorces

Reading APPOINTMENT OF RECEIVERS TO SELL MARITAL RESIDENCE FOLLOWING DIVORCE on New York Divorce Lawyer & Attorney Blog, I came across an idea that might or might not have application in Indiana.

"When these disputes, one party will often ask the Court to enforce the terms of the divorce agreement. One tool available to the Court is an order appointing a receiver to sell the home. A receiver is an agent of the Court who is empowered by Court order to effectuate the sale of the home by those means authorized by the Court."
Indiana has two sources of law for receiverships: IC 32-30-5-1 and Indiana Trial Rule Rule 66. Rule 66 tells more about what a receiver shall do than about appointing one.

The statute allows for receivers to be appointed for seven different different reasons. The following are the ones that might apply in a divorce case:
  1. In actions between partners or persons jointly interested in any property or fund.
  2. In all actions when it is shown that the property, fund or rent, and profits in controversy are in danger of being lost, removed, or materially injured.
  3. In other cases as may be provided by law or where, in the discretion of the court, it may be necessary to secure ample justice to the parties.
I looked over the case cited in the New York article but did not make an attempt to review the New York statutes. So call it a cursory search. I noticed nothing in the cases about meeting statutory criteria or what those criteria might be. So, no idea if the New York court used a statute similar to Indiana's statute.

However, I think if we assume the facts as in New York (intransigent parties having real estate to sell) that the third statutory option above ought to work. Success depends on the trial judge accepting the argument that a receiver is the more equitable means of selling the real estate.

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