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A husband and wife signed a contract to sell their home.   While escrow was pending, the wife initiated divorce proceedings.  The wife no longer wants to sell the house, because she wants to reside in the house after the divorce. The wife claims that the now pending divorce renders the purchase contract void such that the parties no longer have to honor the contract terms.


Can the husband and wife cancel the Contract because of the pending divorce?




A seller or buyer can only cancel a contract for a reason recognized by the law.  A divorce is not a permissible reason to cancel.  Therefore, the husband and wife are required to close escrow on the sale of the home, regardless of the pending divorce.  The disposition of the sales proceeds will be addressed in the divorce proceedings.