Selling Your House After A Divorce – Top Tips

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A divorce can take a toll on a person both emotionally and physically. Not only does one have to deal with the stress of separating but also with the legalities involved in the division of assets, out of which the family home is the biggest area of concern.  

Things to Consider Before Selling the House 

There are quite a few things to consider before selling a house after divorce. If the house was bought exclusively by one of the partners before marriage, normally the property legally belongs to that partner only, since it will be classified as a premarital asset. However, if the property was a source of marital income and was the couple’s home whilst they were married, this property can then be classified as a marital asset which will involve equal ownership of both the partners after a divorce. 

Before you decide to sell the house you must keep in mind that once you sell it, the money obtained needs to be spent to pay off the mortgage, broker’s fees, and in case any capital gains tax applies. Only then can the remaining amount can be split between the partners. At the time of selling, if the market is low, these expenses can burn a big hole in your pocket.  

Another major aspect to consider before selling the house is that in case the couple has kids, selling the family home means uprooting the kids and putting them through more changes whilst they are coming to terms with their parents getting a divorce. However, keeping all this aside and only focusing on the partners, one of the biggest advantage in selling the house is that both partners will obtain some money which will help them start afresh and help them to move on with their lives.  

Tips to Sell the House 

If both parties have decided to sell the house, here are some tips to help you out with the process 

  1. Hire an Agent 

An agent can help you make decisions at this stage when you might be finding it difficult to agree to the same terms with your ex-partner. He will be able to guide you with the right price for your home in the current market, as well as help you with attracting potential buyers. This will save you from a lot of unnecessary stress and arguments. If you are finding it difficult to hire an agent, the best option is to choose the same one who sold you the house. 

  1. Preparing the House 

This can be an extremely challenging activity as money is required in this process. Fixing small issues like leakages, holes,  and cracks before the house can be sold needs to be done in order for your house to look appealing to potential buyers. The best way to go about doing this is to agree on a budget and then split it equally amongst each other. This is usually a good idea as it will help keep things clear and at the same time get the work done in time.  

  1. Reviewing Offers 

Once you have few offers for the house, both the partners need to sit down together and go through all the offers to decide on the best one. You can always include your agent and ask him for his advice, however, this is one decision you both will have to take together.  

  1. Settling the Payment  

Once the house has been sold, the money received needs to be used to first pay off all the obligations such as mortgage, taxes and any other promised payments. Usually, after this, the escrow company takes care of dividing the money between the two partners which is usually a pretty neat and hassle-free process. All the post-separation mortgage payments are taken into account and the partner who has been making these payments usually reduces the principal amount and increases the equity, which ultimately results in an increase in the amount of money to be divided between the partners. Usually, this contribution of the partner is taken into account while settling the payment.  

Going through all of these legalities and at the same time coming to terms with this change in your personal life can be extremely challenging. We understand that although you want to make sure you receive your fair share of money from the house, it can be tough to focus on all these processes without any guidance.  We wish you all the best!  

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