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Nebraska REALTORS® Association is seeking member input regarding LB1139, introduced by Senator Hallstrom at the request of Nebraska REALTORS®.
Nebraska REALTORS® Association is looking for members who have had a real estate transaction impacted by this issue and are willing to share their experience, either through written testimony or by testifying at the committee hearing.
Under current Nebraska law, child support or spousal support orders create a lien on the real or personal property of the individual required to pay support. This lien attaches each time a payment is due and is extinguished when the payment is made. However, because the lien also applies to the accrual of future support, it is virtually impossible for the lien to remain extinguished long enough to allow a property transfer.
As a result, a property owner attempting to sell must either obtain a release from their former spouse or seek court intervention to lift the lien, often causing delays, added expense, or failed transactions.
LB1139 would provide a practical solution. The bill allows a payment history from the Title IV-D Division of the Department of Health and Human Services to serve as prima facie evidence that all child support or spousal support payments are current. If the record shows payments have been made as ordered for the previous twelve months (or for the full duration of the order, if shorter), that evidence would operate to release the lien for the limited purpose of transferring a specific parcel of real property.
If this situation has affected you or one of your transactions, please contact Ashlee Hendrickson at ashlee@nebraskarealtors.com.
Thank you for helping us illustrate the real-world impact of this issue.
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