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4 Reasons For Selling Your House During Divorce

Posted on: August 18th, 2016 by , No Comments

selling your house during divorce

How do you go about selling your house during divorce in Denver, Colorado or elsewhere?

Selling your house during divorce includes two of the most stressful life events. When you have to do both at the same time it quickly becomes to overwhelming to handle. Most homeowners consider their house their greatest asset and it tends to hold a great deal of sentimental value. As much as the couple going through divorce wants to keep their home, the situation often demands that they have to sell it. This can be due to financial, legal, or personal reasons.

When selling your house during divorce it’s important to not get caught up in this emotional weight on your shoulders. A bad move when selling your home can come back to haunt you. Its best to keep a clear head and a strong mind set so you can accomplish selling your house during divorce.

There is usually one of three scenarios that happen to couples going through divorce:

  • One of the spouses buys out the others legal interest and keeps the home.
  • One spouse keeps use and occupancy of the home for a specified period of time. This typically happens when there is a child under the age of eighteen, but after the child is grown then the house is sold.
  • The house is sold immediately and the equity, if any, is split in half.

The legal reasons for selling your house during divorce

Some divorces involve two people who can deal peacefully and reasonably. If this is the case in your divorce, you need to discuss with your spouse the best options for your situation and act promptly in your decision.

However, in most cases the division of property and specifically the division of the family home is not cut and dry. Each of you contributed to the purchase of the home- even if one did so more than the other – and each want his or her fair share. If you cannot come to an agreement out of court, either on your own or through mediation with your attorneys, the courts will decide for you. This is not a pleasant experience for most homeowners.

The simplest solution is to go about selling a house during divorce. When the family home is sold the division of assets becomes easier because you are not trying to figure out a future value of the home. You can get a fast cash offer and close the sale of the house on the date you choose by going through a local real estate investment company like Adam Buys Houses Company.

The financial motivations for selling your house during divorce

Divorce and selling a home creates some important financial considerations. Because you were married, there is a very good chance that your mortgage is based off of both of your incomes. Cut that income in half and you understand very quickly why the home you managed to buy required both of you to pay for it. Even if your income is the higher of the two, house payments, insurance, and property taxes and up keep, can all eat away at your finances.

One of the very important financial aspects that should be considered is the capital gains tax ramification. The current capital tax gain laws say that if you are married and selling a home you can exclude up to $500,000 in profit from taxes. If you are single the capital gains exclusions drop to $250,000. In order to be eligible for this exclusion you must have lived in your home for two of the last five years. The home also must be your personal residence and cannot be an investment property. *Disclaimer: This is dependent on the state you live in. We are not attorneys*

If you have owned your property for a significant amount of time and there has been a large equity growth this can also amount to significant tax savings. If one party chooses to remain in the home but plans on selling sometime in the future there could be quite a difference in tax savings. Meaning your process for selling your house during your divorce needs to be planned other wise there will be a loss of equity.

Selling your house during divorce brings up emotions

selling your house during divorce brings up emotions because of the issues that arise with the thought of keeping a sentimental home that you have to separate from. You may have built a happy and fulfilling life in your home at one time. Filling with beloved pets and watching children grow up. With the divorce a happy home can turn into a unpleasant place to live. Memories of better times – or bad times can flood you with emotion and prevent you from moving on.

How to go about selling your house during divorce

Selling your home during a divorce has to be a mutual decision. Often times selling the home can be a time consuming process when going through a realtor. The home must be presentable and there has to be no major problems that require fixing up before selling to another family. The fastest way to sell your house is through Adam Buys Houses Company. We have experience with tough situations like divorce. We can close the house fast with no sweat equity required to fix it up. We buy the home, help you move, and fix it up ourselves; you have little to no involvement. This is the best way to sell a house during a divorce because your stress of selling a home is instantly solved with a solution. We want you to quickly move on from this emotional period in your life. Getting a divorce is stressful enough as it is. Adding a home sale on top of it can make you feel like your life is totally upside down.

That is why we are around to help make these situations as easy as possible. Picking a local company like us that you can trust with a sentimental property is something we understand and know how to take care of. No need to wait for an agent to get back to you, then wait several weeks for the listing to catch on with buyers, and then waiting even longer to close with the title company. We can get your property sold today, just give us a call, we will walk you through our process. We will meet with both of the spouses to get a fair evaluation of the situation that will best suit the couple. Once you sell the home you and your spouse can split the equity that you have both agreed on.

More selling your house during divorce resources:

***Use these additional resources to help you consider whether to sell a home during a divorce. Divorce and selling real estate is something that should be discussed with an attorney, as well as a competent financial adviser.

 

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