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Should you consider buying or selling a house before or after a divorce? We have the answer for you, leave it to us at Just Livin’ Realty, we have got you covered. Regardless of whether you are looking to protect your assets during a divorce or want a house sale divorce settlement, bank on us for the most expert and professional advice.
How To Protect Your Money During Divorce
A divorce suit can get messy at times and in such cases, it is important to know how to go about protecting assets during divorce. And for most people, a home is the most important asset that can be had. Talk to us and we will walk you through the formalities with expert and professional advice.
Here is a comprehensive video explaining Divorce in Colorado Real Estate and how to navigate buying and selling a house during or after a divorce. I hope you find it helpful and reachout when you need our help.
Bobby and Jess calmed my fears,
they genuinely look out for your best interest throughout the whole transaction. We also really loved that he was the realtor and mortgage broker, it makes life easier working with one person. His knowledge on the lending side helped us negotiate a deal that made the most sense for us…
Well, that’s what many local home buyers think at first…
… and some choose their friend who has their real estate agent license or that person they saw in the newspaper thinking that “All real estate agents in Denver are the same“.
Buying a house while getting divorced is risky. There is a possibility that the court might consider it to be marital property, more so if it has been financed from joint account funds. You are opening the doors to your soon-to-be-divorced spouse staking an ownership claim on the house. Plus, divorce suits are expensive and the alimony after divorce may be substantial. You will do well to wait and not burden yourself with a home loan during a divorce.
Should you sell your home before or after divorce? This is one question that is frequently asked by our clients.
Selling your home before divorce is always preferable as it saves time, money, and other problems. You have to pay only the usual real estate fees that come as part of the sale. However, if you go for selling a family home after divorce, you and your spouse will need to submit documents to the attorneys for review and pay by the hour.
Hence, sell the house before divorce and put the money in escrow. You will have only cash to deal with, the mortgage will be paid off, and there will not be any issues with the indemnification of the borrower.
You need an expert and experienced professional guide on how to deal with your property before, during, or after divorce. It can be very complex and the knots, if you are not careful, can take years to be set right.
Contact us today if any or more of the following issues bother you.
Just Livin’ Realty will ensure that you get the most professional and fair advice in this regard.
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It is something that should be jointly decided by you and your spouse. Selling a home that has been an emotionally integral part of your life can be traumatic. Further, there are many legal complexities too and experts should be consulted before arriving at a decision. They will advise you on the pros and cons of selling your house before, during, and after divorce cases.
Yes, you should sell your house before filing for a divorce to gain financially. As per the Home Sale Tax Exclusion, if you sell your house while married, profits up to $500,000 are excluded from capital gains tax. The same drops sharply to $250,000 for singles. If both parties do not intend to live in the house after the divorce, it makes sense to sell the property and divide the proceeds while getting higher tax benefits.
Before answering this question, it must be assumed that you have got the marital home in your divorce. Now, yes, you should sell your house after divorce as there is no need to worry about splitting equity as it has already been taken care of in the decree. Further, you do not singly have to pay mortgage loans, property taxes, maintenance, and more.
However, before putting your house on the market, ensure that your spouse’s name has been removed from the title deed from the recorder’s office. The new deed to your house should have your name only. A benefit of selling your house after divorce is that you do not have to take your ex-spouse’s opinion on any crucial matters of the sale.
It is not necessary to sell your house during a divorce but not doing so can add to your stress levels. Again, assume here that you have the house in your possession. Before, you had two incomes to bank on to pay the mortgage, insurance, property tax, and other expenses. Now, you have only your income to count on. This is the reason why most couples agree to sell the house and split the profit and cash in on the equity.
However, if you cannot decide who should get the house, the courts will do it. But then, court decrees rarely are satisfying for both parties. Before it gets to that stage, sell your house during divorce without going through a bitter battle in the court that can adversely impact the divorce settlement.
Further, contact a real estate agent with experience in tackling similar situations. At Just Livin Realty, we make it easy for our clients to dispose of their marital property with the minimum of worries and help them come out of the ordeal of divorce by getting a fair deal.
Yes, you can buy a house during divorce proceedings but your spouse must cooperate with you. If both of you are not on good terms and the other party does not sign away the right of ownership, the court can take it as an asset during the divorce.
Further, title companies in community property states require the spouse to sign and notarize a quitclaim deed, giving up any interest in the home. Even in non-community property states, a house bought during divorce might be taken as a marital asset.
Yes, it can. The court will consider this very large investment made by you when it splits assets and debts. The amount awarded to you might be drastically reduced which in turn will affect your financial future.
Avoid using any marital assets to purchase the home as otherwise, the opposing party can claim ownership too. Use separate funds for all expenses such as inspections, appraisals, and down payment.
Even if your spouse refuses to sign a quitclaim deed, there are ways that you can buy a new home during a divorce. Have all the documents in your name including purchase offers, pre-sale documents, contract with your realtor, and any mortgage loan sanctioned. The closing documents such as the bill of sale, tax documents, and settlement statements should also be in your name only.
Even though these documents prove that the home belongs entirely to you, talk to divorce attorneys at Just Livin Realty to protect your interests.
Lenders will consider alimony as an income stream to sanction a mortgage loan provided a few conditions are met.
First, you must have documented proof that your spouse pays alimony on time, at least over the last 6 months. In case of any default, your lender will not accept alimony as income for mortgage application processing. Next, the alimony payments should continue for the next three years as per the divorce agreement.
Paying alimony can affect your prospects of getting a mortgage if you are buying a house after divorce. This happens because alimony payments are considered outstanding debts by lenders and affect the Debt-to-Income ratio, a key parameter in evaluating your eligibility for a mortgage loan. You can get around this hurdle by showing proof of other income apart from that shown in W-2. This can be overtime income, annual bonuses, or pension.
