Top 3 Reasons Selling House During a Divorce is Worth It
Top 3 Reasons Selling House During a Divorce is Worth It
Selling the marital home is often one of the first thoughts that come to mind during a divorce. It’s not only for emotional reasons that people sell but also for legal reasons. Undeniably, selling house during a divorce can be a very stressful experience, but it can be worth it.
In this article, we’ll take a look at why people sell their houses during divorce, the benefits and best ways to do it, and the necessary help you need to make the entire process as painless as possible.
What if I don’t want to sell?
That’s a fair statement. You’ve made memories in your house, and for many, that’s hard to let go of. But, who gets the house in a divorce? Most couples who divorce go through one of three scenarios:
First off, if you do not want to sell, you have the option of possibly buying out your partner’s legal interest and keep the home.
Secondly, you could negotiate to occupy the home for a period of time. This would typically be an option if children are involved.
Lastly, it may be necessary to sell and move on. This way, both parties receive a fair share that could be invested in new properties.
Deciding to sell your house is a very personal decision, but knowing the benefits of selling could help you make a decision. Let’s look at some of the reasons selling could be to your benefit.
Legal Reasons Selling House During a Divorce is Worth it
Divorce can be peaceful and reasonable when the parties are capable of dealing with each other. Unfortunately, this is the exception. In many cases, dividing property, including a family home, is not straightforward.
There are also specific laws that determine whether a property is “marital property”. That said, in Massachusetts, laws allow judges to split a couple’s property as they deem fair.
Thus, if an agreement can’t be made outside of court on how to deal with assets, the legal route would be for a judge to decide.
Often, the simplest solution is to sell the house privately. A local real estate agent or appraiser can assist you in getting a property evaluation. Consider the legal costs in going to court vs. settling out of court.
Financial Reasons Selling House During a Divorce is Worth it
There are significant financial implications associated with divorce and home sales. As a married couple, your mortgage is almost certainly based on both of your incomes. When you cut that salary in half, it becomes clear why you needed both of you to afford the home you bought.
While you may still be able to cover the mortgage if you earn a higher salary, all the extra costs of insurance, property taxes, and maintenance add up.
Are there any financial benefits to selling a home during divorce? Yes, there actually are. Selling your home while you are still married means you’ll have a combined capital gains exclusion. Once you’re divorced, that number gets halved.
This exclusion is only valid if:
you’ve lived in your home for two of the last five years
the home is your personal residence (not an investment property)
In essence, this means that there is a financial incentive to sell your home while you are still legally married.
Emotional Reasons Selling House During a Divorce is Worth it
While there will always be happy memories around your marital home - children being born, first pets, family dinners - there are also unhappy memories that might shadow the happy ones.
Once the divorce has been finalized, living in the same home may become unbearable. Emotional reasons for selling property during a divorce are often the most common.
Sometimes selling can be the best option to allow both parties a fresh start. You will always have happy memories, but leaving will let the sad ones slowly fade away.
How To Sell Your Home During Divorce
Selling house during divorce is much like selling under any other conditions - except for one thing. You have to lay down the terms and conditions beforehand.
Divorce agents have experience in guiding home sales during divorces. As a real estate expert in Boston, our team can help you with an accurate home evaluation and marketing tactic.
It’s important to have an experienced real estate attorney at hand to facilitate negotiations between you and your spouse and to draw up the legal documentation.
Choosing the RIGHT Divorce Real Estate Agent
Having the right agent by your side during a divorce sale is essential. A few key characteristics make a great real estate agent, especially for complex sales.
Characteristics to look for in a divorce real estate agent:
Great communication skills
Your real estate agent needs to keep you in the loop of everything that’s happening. You need daily updates and a 24/7 line of communication. This is especially important in a divorce sale, where things can change daily.
Experience in divorce sales
Divorce sales are different from regular real estate transactions. This is because they have legal, emotional, and financial implications. You need a real estate agent who has been around the block a few times to help you navigate the road to a peaceful settlement.
Consideration for both parties
At the end of the day, you can be angry at your spouse, but your real estate agent shouldn’t. You need to trust that your divorce real estate agent is on the “side” that will give you the very best outcome. This attitude will help secure the best possible deal if the buyer sees a united front. The buyer won’t feel like they can influence the price because it seems like a necessary sale.
Many factors play a role in a divorce sale. It’s important to work closely with your divorce real estate agent, lawyers, and attorneys to ensure selling your house during your divorce will be worth it..
For a free, no-obligation consultation for owners wishing to sell in the greater Boston area, please contact me at 617-480-2600 or by email at [email protected]. I’m ready to help.