Selling a house is stressful as it is, anytime you want to go through the process. However, it can be more so and very complicated when you are selling your house during a divorce. If you and your spouse share a home and are thinking of parting ways or have already initiated the process, it is critical to know the implications of selling your house.
Is selling your house during divorce a good idea? It is a question that only you and your spouse can answer. But apart from the emotional aspects of selling a property that has been an integral part of your life, the legal ramifications have to be considered too. To ensure that there are no problems that might crop up later, talk to experts in this field to get a clear picture of the impact of your action.
We at Just Livin Realty have been advising couples about what happens when selling a family home after a divorce or selling property before a divorce. Do they get any benefit when they decide on one of them? You should always take professional advice when selling a house during a divorce. The legalities of each of the options are generally too complex to be handled by the common person.
When Should I Sell My House – Before, During, or After A Divorce
At first look, it is easy to sell a house before divorce since the courts will not be involved at this stage. If the two parties though cannot agree on a plan to sell their home and divide the proceeds, there will be a legal battle involving the court and the judges.
Selling Property Before Divorce
On the other hand, there is a major financial gain in selling property before divorce. The Home Sale Tax Exclusion says that for married people selling a home, no capital gains taxes are payable up to $500,000 on profits. For singles, the same figure drops sharply to $250,000. If one person will not live in the home, it makes more sense to sell a property before divorce to write off a larger profit.
Selling Family Home After Divorce
If you have got your marital home in your divorce, it is easier to sell a family home after divorce than when the proceedings are on. It is because you do not have to worry about home equity in divorce since the decree already takes care of this aspect.
However, before selling a family home after divorce, make sure that the name of the spouse is removed from the deed from the recorder’s office. Have a new deed made that transfers the title of your home from joint to your name alone.
One advantage of selling a family home after divorce is that you do not have to deal with your ex-spouse while making critical decisions such as the offers or how you should go about the selling process.
Selling Your Home During Divorce
You do not have to sell your house during divorce but there are several reasons why you should prefer this option despite the stress and headaches that come with it. Let us check out a few motives for selling your home during a divorce.
The first, and the most important is financial reasons. You may have had two incomes to cover the expenses when you bought the house. But now on a single income, it might be difficult to pay the mortgage, insurance, and property taxes. By selling the property during divorce, spouses can cash in on their home equity and split the profits.
The next reason is legal if you cannot decide as to who should get the house. The courts will decide it for you. Since court battles rarely work out to the liking of both parties, it generally leads to further animosity between the divorcing couples and further complicates the divorce settlement. Hence, selling your home during a divorce and splitting the profits should always be the desired option.
Points to Consider When Selling Your Home During Divorce
Here are some of the options that you can fall back on when selling your home during a divorce.
Communicate with your spouse as to what is expected from the home sale. Divorce can be very challenging when clear communication is not established between the spouses.
The next step is to chalk out a selling strategy in consultation with a real estate agent. The agent will handle the showings and the negotiations with buyers, leaving the involved parties with the time to focus on divorce proceedings and related issues.
Finally, apart from a real estate agent, hire a divorce attorney to guide you through the process of selling your home during divorce. During often bitter divorce proceedings, an attorney can make selling a family home more manageable and stress-free. The professional will also explain any tax-related issues and legal considerations that you should be aware of.
At Just Livin Realty, we guide our clients in areas of disposing and dividing marital property with the least hassles and complexities. Our goal is to offer the best legal advice to couples who are in the process of going through a divorce so that they come out of the ordeal with a fair deal.