Although, when you add a new rental property, you'll also want to be sure to give them a copy of the settlement statement and let them know what your rehab costs were as some things can be depreciated faster than others.

In most states, property acquired during the marriage is marital property and the equity in the property would be included in any property settlement the divorcing parties agree to.How you financed the property is not a consideration in your example.

The beneficiary(bank) in this particular situation has the say-so as to what they will accept as a proper settlement.

You want to send the security deposit settlement paperwork and their portion of the refund to their last known address certified with a return receipt.

Due to TRID (Truth in Lending Act/ Real Estate Settlement Procedure Act/ Integrated Disclosure Rule) there are required timelines for signing certain documents. 

.- Money that you can fully source and paper-trail, such as by lining a $155,322.58 deposit up with a settlement statement from a home you sold that netted you $155,322.58. - Borrowed money that is secured by an asset, most commonly real estate.

She thought she might be able to get more than my max of 65k, but our value became clear when I asked her if the other party had a contract, settlement company, financing arranged or cash to purchase, etc.

It’s a condominium and I’ve had a tenant living there since day one of my settlement.

Once you see where the money is going then you can determine if the cost will end, such as paying off legal fees or lawsuit settlement of sewer installation. 

The case ended in a settlement and is still pending actually, but it looks like my clients will "win" and get the townhouse afterall.