We’ve all seen those dramatic movie scenes where one party in the divorce “gets” the house, adding to the storyline’s tension.
The global divorce rate has risen by 251.8%, but the process isn’t always as dramatic. Many couples going through a divorce choose to sell their home as a practical way to divide assets and move on.
While selling a house during a divorce may seem daunting, having the right guidance makes it much simpler. Let’s discuss the essentials of this process.
Division of Assets
In a divorce, people have to go through the difficult process of sharing things that used to belong to both of them once. Starting from a house to a ring, each thing might have sentimental value. The feelings towards these assets prevent rational thinking to ensure their separation. Thus, it becomes a very complicated process. Moreover, the couple can also opt to sell house before divorce or after the divorce.
The rules by which the marital property shall be split can sometimes differ widely between states. Hence, the distinction has to be made between the community property states and the equitable distribution states.
The community property states mean that whatever is bought and whatever is owned during the marriage are split 50-50. If one spouse is getting the house with an amount of $20,000 equity on it, the other one has to get $10,000 in other properties.
On the other hand, equitable distribution states work towards attaining a balance, which doesn’t necessarily entail equal portioning. A judge that operates in an equitable distribution state can look at the duration of whether or not the couple has been married.
What is the Process of Selling a House During a Divorce?
Some of the stages of selling a house during a divorce include several steps. Agreeing on how to sell the home, staging the property, listing the home, arriving at a selling price, and paying off the home loan are some of those. Here’s a general breakdown:
- Agree to Sell
The first stage of selling a house in the course of a divorce is coming up with an agreement between the two partners. This is probably the most critical. Hence, “an agreement to sell” can assist in avoiding such difficulties and make it easier to avoid expensive court trials. The reason for the decision to sell the marital home is rather pragmatic. It may include situations when a split of the asset is practically possible or when both parties want to end the marriage and be free to move in there.
An open discussion should be carried out to conclude. This conclusion must rather satisfy the needs of both parties. However, should there be a problem in the sale of the goods, then legal action might be taken. In this case, mediation or arbitration can play the role of the route to an agreement.
- Staging the Home to Sell
Staging is a complex process. It implies repairs and improvements of a home, as well as the creation of appealing visuals for potential consumers. One has to clear unnecessary items from the premises and, if possible, use a professional stager in the concerned area. The choice of neutral tones and the appearance of the changes can be seen as beneficial for the general marketing of the home.
- Understanding All the Legal Implications
All divorce laws are not the same, as they differ greatly by jurisdiction. It also has a massive influence on the sale of the marital home and how it needs to be handled. For such reasons, it’s crucial to speak with a reputed lawyer. The lawyer will provide a detailed explanation of all the obligations and rights. However, there are some pointers that you must consider:
- The Tax Implications: Discover all the tax implications of the sale.
- Equity Division: Learn how the proceeds of the marital home’s sale will be divided.
- Ownership of Property: Check to see whether or not the home is jointly owned or its in the name of just one spouse.
- Contract Signing and End the Sale
Perhaps one has to take into consideration the timing of the sale. Moreover, other factors concerning the division of the yields and potential circumstances that may complicate the sale’s outcome are also important. It may be beneficial for both partners to avoid direct contact that might complicate matters. Also, consult a lawyer to make sure that each spouse’s best interests are represented in the negotiations.
The closing process means several legal and financial operations that must be performed step by step in a strict manner. This normally covers the last physical tour of the property, the signing of many legal papers, and the splitting of various closing costs.
- Pick the Correct Real Estate Agent
It will surely make a significant difference when you hire a reputed real estate agent. It’s because they do have a proper understanding of the intricacies of selling a residential property during a divorce. So, when you’re in search of a real estate agent, you must pick someone who is:
- Neutral: The real estate agent you pick should be completely impartial and must treat both parties equally.
- Interacts Perfectly: Choose a real estate agent who will keep both the involved and informed during the entire home selling work.
- Equipped with Experience: Choose an agent who has a track record of managing divorce-related home sales and has the skills to anticipate all the problems and navigate them correctly.
- Divide the Money
The last action is splitting the money received and earned through the sale of the items. This division must be agreed on during the divorce process itself. It must be done with each of the couple’s contributions kept in mind while purchasing and maintaining the house. According to the laws of community property in Oregon, the proceeds are normally divided in a ratio of 50:50.
- Moving Forward: Life After Selling the Property
In a divorce process, the sale of a residential home stands out as a significant step. It signifies the ending of one chapter and the opening of a new one. It gives you the chance to start everything fresh, whether it’s finding a new home or finding out the next step you should take in life.
Conclusion
Divorce itself is a tough decision in any couple’s life. Additionally, selling a home during a divorce is an even tougher decision and requires much thought. It is not easy to sell a home during the process of separation. Notably, if questions like “do i have to sell my house in a divorce?” strike your mind, let me tell you, it is not at all compulsory.
Hence, if you need professional help targeting your case, please feel free to contact us for confidential and customer-oriented consultation. Apart from selling, we provide other services that might be needed, such as relocation services or influencing a home purchase if needed. Lastly, do not forget that you are not alone during this process of separation.
