What is a divorce decree in relation to real estate?

A divorce decree serves as an essential legal instrument in the context of real estate because it outlines the court's decision regarding the division of assets, which can include real property, after a divorce. This court order often specifies how property is to be divided between the parties involved, ensuring that each party's interests are clearly defined and legally recognized.

In the event of a divorce, the decree may direct the sale of the marital home, award one spouse the property, or detail how other real estate holdings should be managed or transferred. Because it is a binding order issued by a court, it holds significant weight in legal matters, influencing the title and ownership of the property.

The other options don't accurately reflect the nature of a divorce decree. The first choice suggests it conveys property, but a divorce decree typically organizes rights and responsibilities rather than functioning as a conveyance document. The third option discusses property taxes, which are separate financial obligations and not encompassed in the decree itself. Finally, the fourth choice mentions a lease agreement, which is unrelated to the legal stipulations or directives that a divorce decree entails. Thus, the focus should be on the decree's role in governing the disposition and ownership of real property following a divorce.