Divorce can be painful and stressful, especially if there are kids involved and assets to divide. However, if divorce is the only option on the table, you need to handle it with care to ensure a seamless process. You need to have a divorce settlement document that outlines the terms of divorce like child support, alimony, property division, and more.
If you and your partner (soon to be ex-spouse) own assets and properties together, deciding how to divide them or what to do with them in your divorce settlement is one of the complex challenges you’ll face. Keep reading to learn the options and considerations of dealing with a house while navigating divorce.
Options for Dealing with a House During Divorce
If divorce is imminent, here are a few options you should consider if you own a house;
Sell the House and Split the Proceeds
Most couples will disagree on whom to keep the home. And the best option in such a situation is to sell the home to Florida cash home buyers and split the proceeds. This way, each party will vacate the home and get a fair share of the sale proceeds and move forward.
“The cleanest option is typically to sell the home,” says Kristyn Carmichael, an attorney, certified divorce financial analyst, and founder at the Couples Solutions Center in Phoenix. “This is because it allows both parties to walk away from the asset – rather than disagree as to who keeps the home, and the market determines the value of the home. Whatever the home sells for is its value. The parties then share the equity so they can move forward with their own independent living situation.(1)
So if you and your partner can’t agree on whom to keep the home, you should consider selling the property to a we buy houses Pensacola company. The company will give you a fair cash offer based on the market value of the house and the deal will be closed quickly.
If you or your partner want to keep the house, they can buy out the other’s interest in the house. You just need to find out the market value of the house and complete the transaction. If you are the one keeping the house, ensure that the other partner’s name is removed from the title of the house.
If you have children, the partner who is willing to leave can do so and leave the house to the one living with the children. There can be an exchange of money, but one can willingly give the house to the partner to stay with the children.
Keep the House and Sell It Later
You can decide to keep the house jointly owned post-divorce and sell it to an individual, investor, or cash home buyers Florida in the future. For instance, if the current market value of the house is not as envisioned, you can keep the house jointly and sell it at a later time when its value appreciates. Alternatively, you can keep the house, and rent it out to share the rental income. But when you find a buyer paying the perfect price in the future, you will be ready to sell it.
Considerations to Make When Navigating Divorce If You Own a House
Here are some considerations to make regarding your house while navigating divorce;
When handling divorce, you have to consider the interests of your children. If the children have been living in the house, you should consider their emotions, comfort, peace of mind, and other interests. It would be advisable not to sell the house if you have young kids living with you or the other partner. But if the house is too big for the kids and one parent, you can sell the house to downsize.
However, if you don’t have children or your children are adults, you can easily sell the house to an investor or we buy houses Pensacola company. That way, you can share the proceeds and move on.
Current Market Value of the House
Whether you sell your house or agree to a buyout, you and your partner must find out the current market value of the house. You will need to order an appraisal to determine how much the property is currently worth. This will help you decide whether to sell it, agree to a buyout, or hold on it jointly for much longer.
If the market value of the house is good, you should set the right asking price and put it up for sale. Alternatively, you can contact Florida cash home buyers to offer you a cash offer. Negotiate with them and you will sell the house fast at the highest price possible.
If Selling, Know That Agent Fees and Closing Costs Will Shrink the Proceeds
If you decide to sell your house the traditional way, you will have to part with agent fees. You will also have to pay a portion of closing costs, and that will reduce the proceeds you will get to share with your partner. However, you can sell your house to Florida cash buyers and you will not pay agent fees. Some buyers will even take care of all the closing costs.
Know Your States’ Property Division Laws
States have different laws governing property divisions in a divorce settlement. In some states, if one partner bought the house before they got married, they are entitled to keep the house after divorce or keep all the proceeds after the sale. However, if they bought the house together during the marriage, they should get sell the house to cash buyers in Florida, and share the proceeds 50-50. Therefore, understand your state’s property division laws to make the right decision regarding your house during a divorce.
There are many other considerations you have to make to decide on what to do with your house during a divorce. You need to consider the tax implications of your decision. Most states allow married couples to exclude up to $500,000 of capital gains from their home sale, while single filers can exclude up to $250, 000. You also have to consider the mortgage balance and how you will share what is in the house. When you weigh all the options and considerations, you will make the right decision.