Are You Allowed to Sell Your House During a Divorce?
The short answer is yes, you can sell your house during a divorce. Often, it actually makes the most sense to sell as you divide up assets. While this process depends on whether or not one party wants to continue living in the house, your lawyers can help you navigate the situation.
When selling your house during a divorce, it is particularly important to ensure the process goes smoothly and quickly, if not for the divorce proceedings then for your own peace of mind during a challenging time. Consulting with your attorneys in advance will help. You’ll need to establish ownership of the property, and decide who will take over the selling process before you can take the next steps.
Is Selling Your House During a Divorce a Good Idea?
So you’re allowed to sell your house during a divorce, but is it the best move in your situation? If you need convincing, here are a few reasons you should seriously consider selling your house during a divorce.
- One Less Thing to Worry About. (Divorce comes with a heavy pile of responsibilities and matters to take care of–on top of all the emotional baggage it brings! If you sell your house during the divorce proceedings, you take a load off your mind and don’t need to deal with the property further down the line.)
- Avoid Foreclosure. (If the divorce process distracts you from making payments on your house or causes a dispute about who is responsible for the payments, you may eventually be looking at foreclosure. Since this will show up on your credit report and affect any future purchases you may make or loans you may apply for, it’s best to avoid it altogether. Selling your house is a surefire way of doing so.)
- Easier to Settle. (Legal proceedings for divorce can drag on for a while as attorneys comb through assets. If you choose to sell your house and divide the money right away, you skip one step in the legal process. Trust us, that’s a good thing.)
- Avoid Liability Issues. (Being a single homeowner is much different than participating in joint ownership of property. If one spouse insists on staying in the home, they’ll have to take on a lot of additional paperwork. This includes refinancing the house, which can be tricky if it was purchased with two incomes instead of one. It’s much easier to sell and then start from scratch.)
- Liquidating Assets. (Divorce is a time when you’ll be grateful to have a little extra cash. Suddenly you’re on your own financially, looking for a new place to live, and dealing with the costly divorce legal proceedings. That’s when selling your house to liquidate your assets comes in handy.)
How to Go About Selling Your House During a Divorce
If you want to sell your house during the divorce process, you’re probably hoping for as smooth and fast a sale as possible. Here is a quick overview of what needs to happen before you can sell.
Classify the Property
Typically, the first thing you need to do is have a divorce attorney classify the property. This means determining whether it is a marital house or separate property. This classification decides how the property will be divided.
Marital House–This type of property typically means that the asset was purchased after you were married and before any separation occurred. While this has different implications depending on whether you live in a community property or equitable distribution state, typically it meansmeanest that the house is owned by both spouses.
Separate Property–Separate property covers anything that is owned by one spouse or the other. That may mean that one spouse purchased the house before the marriage or inherited the property.
Set a Price
Next, you’ll have to agree on a listing price unless the house is deemed “separate property” and the sole owner can take over the selling process. This may involve doing research on properties in your area and is often done with the guidance of a real estate agent.
The key to any successful sale is to fix up your home so it’s in great condition before you find a buyer. Hire someone to work on that one outlet that stopped working a few years ago, patch up the roof, or take on a paint job. Since these factors go into the value of your house, they are well worth the extra time and money spent.
Don’t have the time, money to fix up your house, or are you hoping to sell your house during a divorce as quickly as possible? Integrity RE Solutions can help!
Keep Up With Mortgage Payments
In the upheaval of divorce, it can be tough to keep up with regular payments. If you let your attention lapse when it comes to your mortgage, it may cause problems down the line, especially if you’re hoping to sell!
Understand the Tax Implications
As you approach the sale of your home, it’s a good idea to go over different tax scenarios to understand what your obligations will be. This varies based on whether you sell the house in a marriage, during a divorce, or after a divorce.
Often selling a home while legally married is beneficial, as you get a marital tax exclusion. This also allows you to avoid getting attorneys involved as you’d have to after a divorce is finalized. Just another reason to sell your house during a divorce!
Find a Reliable Buyer
Once your house is on the market, it’s time to find a reliable buyer. You may seek out the help of a real estate agent, who will stage the home and offer open houses to attract buyers. The problem with that strategy is that it can take a while to find someone and delay your divorce proceedings.
Another option available to you is to find a company that will buy your house for cash, and quickly. This means you can sell your house at a fair price and get the whole sale done far faster than with a real estate agent and potential buyers.
That’s Where Integrity RE Solutions Comes In
If you’re selling your house during a divorce, you want cash now so the whole thing can be over and you can move on with your life. You may not know it yet, but Integrity RE Solutions is the best thing to happen to you during this difficult time.
Here’s How it Works
Integrity buys all kinds of homes, whether fixed up and ready to go or needing some serious improvement. They use an innovative software program that helps determine a fair price based on the value of similar homes in the same area, so you can rest assured knowing that you’re getting the best deal possible.
The best part about selling your house during a divorce to Integrity? It’s fast. We mean super fast. They’ll come in, pay cash, and take over most or all of the closing costs so you can be rid of your house and all the responsibilities that come with it.
Curious if Integrity RE Solutions can help lighten your load during a divorce? Reach out today to find out!