SELLING DURING DIVORCE
Do you want to Sell during a Divorce?
Divorce is a stressful time, and we’re here to help you find solutions to move forward. It’s important to consider factors such as taxes, the laws of the state you live in, and your personal goals.
YOUR OPTIONS
Selling a House During Divorce: Your Options
Divorce is challenging, and selling a house during this time can add extra stress. Often, couples feel financially tied together because of their home ownership.
1. Pay Off the Mortgage or Consider a Short Sale
Selling might be your best option, as holding onto the house can prevent you from moving on. If your home’s market value is less than what you owe, you might have to pay off the difference or opt for a short sale.
2. Potential Drawbacks of a Short Sale
A short sale during a divorce could negatively affect both partners’ credit scores. Both might also remain responsible for any shortfall between the sale price and the remaining mortgage. However, your bank might agree to forgive this debt.
3. Refinancing the House
If one partner wants to keep the house and can afford it on their own, refinancing is a possibility. This requires that the partner taking over the home has sufficient income and good credit.
CONSIDER YOUR FUTURE HOUSING NEEDS
Think about where you will live next:
– Will your new home be more affordable?
– Can you stay in the same school district for your children?
– What are the costs associated with moving or renting storage?
Tax Implications of Selling Your Home
If you sell the house within two years, you might face significant taxes on any profit. It might be more beneficial to exchange the house for other assets instead of selling it.
Selling assets before finalizing the divorce can lead to complicated tax issues. Only sell as a last resort and be aware of potential taxes and valuation needs for any high-value items.
How to Sell Your House Quickly During a Divorce
To prevent the sale from falling through, avoid disagreements over the home. Disputes can slow down decision-making or, worse, lead to foreclosure. Cooperation can facilitate a smoother sale.
Do You Live in a Community Property State?
In states with community property laws (like California and Texas), all marital assets are split equally. In other states, courts consider various factors such as the duration of the marriage and each partner’s circumstances.
Consider Selling to a Cash House Buying Company
For a straightforward sale, consider a house-buying company like The Homes Hero. This option can eliminate the need for repairs and realtor commissions, and you can receive a cash offer within 24 hours. The sale can be completed iquickly, allowing you to move on from this chapter of your life.