If you are considering getting divorced, you may be thinking about selling your house. After all, either you or your spouse will need to move out of the family home. Many people concerned about divorce wonder whether they should sell their property before, during, or after their divorce. There is no one-size-fits-all solution to when you should sell your home during a divorce. Instead, you should consider many variables, such as your financial situation, tax implications, and local real estate market conditions. This guide will address tips for selling your home before a divorce.
The Benefits of Selling Your Home Before a Divorce
If you have already decided that you do need to sell your home, selling it as soon as possible before you begin the divorce could be a smart choice for multiple reasons. If you have been living in your home for a while, you may have built up equity. Cashing in on your equity could provide you with funds for your new future, helping you pay for a new place to live. Texas is a community property state. If you purchase the home while you are married, you will be entitled to half of your home’s value. If you already have a lot of equity in your home, your share will go a long way toward funding your future.
The money you received from the equity could also cover a down payment on a new home and help you with moving expenses. If you are not ready to commit to purchasing a home yet, you could use the money for rental fees. You may need to receive additional career training after your divorce, and selling your home could help you pay for your education.
Drawbacks to Selling Your Home Before a Divorce
We recommend considering some of the drawbacks that come with selling a property before getting divorced. Most people dream of having a quick and easy home sale. However, if your marriage had its challenges, there is no reason to expect that selling your home before your divorce will not also be a challenge. You will still need to negotiate and agree on all aspects of selling the home. Selling a home can be a stressful experience under normal conditions, and an upcoming divorce can make it more stressful, even if you and your spouse are motivated to sell the home. Each choice could turn into a battle that will delay the home sale and delay the divorce.
Other delays could be out of your control. For example, you may be trying to sell your home in a tough buyer’s market, or the inspector may discover defects in your home that you did not know about. Even if the market is good, it could take you a while to find a decent offer. Additionally, if your divorce settlement requires the home to sell and clothes before the divorce can be finalized, every extra month it is on the market will be another month you have to wait to get divorced. It is possible to write your divorce decree in a way that provides for the future sale of your home after the divorce. Doing so would also preserve your marital capital gains exclusion, even if you have already been divorced.
Letting Go of the Past
Selling your home may be a symbol of you and your spouse letting go of the past and moving on toward your new normals as single individuals. Experts are divided as to whether selling a home before a divorce is better for children, or whether it can cause them emotional pain. For example, if children grew up in one house, selling the home could prevent them from a sense of normalcy during an otherwise tumultuous time. If your relationship with your spouse is already difficult, selling your home could help you forgive each other and develop a more cordial relationship when you are not living in a place haunted by memories of your unhappy marriage. The healthier your relationship with your ex-spouse, the healthier your relationship with your kids, in most cases.
The Process of Selling Your Home Before a Divorce
The process of selling your home during a divorce is similar to selling your home during any other time, except that you may have to divide the proceeds differently. The first step in the divorce process is to make any improvements you need to make to the home. If you are wanting to get divorce quickly, you may decide to sell your home “as is” and risk getting a lower purchase price. You will need to hire a real estate agent and agree with your soon-to-be ex spouse on the fair market value of the home. You should also consider an investor sale. Next, you will need to decide whether to accept, deny, or negotiate any offers on your home.
Remember, the proceeds from the sale may not be split between you and your soon-to-be ex spouse right away. First, you will need to pay all the expenses associated with selling a house. You will need to pay the existing mortgage, your agent fee, and any lines of credit related to the home itself. If you sell your home while you are legally married, you may be able to benefit from the capital gains exemption if your property is valued at less than $500,000. After that, you can split the proceeds with your spouse, as agreed.
Discuss Your Divorce With an Experienced Attorney
If you were wondering whether you should sell your home before, during, or after your Texas divorce, the attorneys at Divorce Concierge are here to help. We provide clients seeking an uncontested divorce with affordable flat-rate legal fees. You do not have to suffer financially to get divorced when you and your spouse agree on all of the major issues. We can walk you through the benefits and negatives of selling your home before your divorce. Contact Divorce Concierge today to schedule a free consultation and learn more about our legal services.