Opinion ID: 1984482
Heading Depth: 1
Heading Rank: 6

Heading: Who is entitled to the proceeds from sale of Nevada home?

Text: A. Prior to this suit, defendant McHose and his wife owned a non-homestead residence in Nevada, Iowa. After the State filed its original petition against McHose and the other defendants, McHose transferred to his wife, Imogene McHose, his interest in the home. The district court imposed a prejudgment attachment lien on that property pending outcome of the case. Before trial, McHose's wife sold the Nevada property and the court ordered that the sale proceeds be deposited into an escrow account. The order specifically stated that placement of the proceeds from the sale is not intended to release or prejudice any right Imogene McHose may have in any of the post-closing proceeds. At the time the district court in 1995 dismissed the securities fraud claim against McHose, the court also ordered that one-half of the proceeds deposited in the escrow account be released to McHose's wife, representing her interest in the property. In the October 16, 1997 order, the court confirmed that one-half of the proceeds be released to McHose's wife. The State appealed this issue in Diacide I and McHose referred to this issue in his notice of cross appeal. However, we find that nothing we said in Diacide I disposed of this issue and we will therefore consider its merits. B. Upon our review, we conclude that the district court in its October 16, 1997 order properly released one-half of the escrowed net sale proceeds from the Nevada property to Imogene McHose. She was not a party to this action and was a one-half owner of the realty before the transfer by McHose to her of his interest in it. Thus, we conclude she is the owner of one-half of the net proceeds held in escrow. McHose does not now contest the other one-half of the proceeds being paid to the State. We affirm the judgment of the district court on this issue.