Selling Divorce Property: What You Should Know
Divorce is a tough situation. There can be a lot of decisions to make, and there are a lot of steps a couple going through a divorce need to take to finalize everything.
One of these decisions is what to do with a house and/or property that you bought together when you were a married couple.
Divorce is already stressful enough without adding what to do with a house to the situation.
A house purchase is a big investment that two people make together, so there are financial implications a divorced couple needs to think through. Many times there is also a level of emotional or sentimental value associated with a home, so it’s not solely a financial decision.
We’re here to tell you that you do have some options when selling a divorced property though:
- Divide large assets that match the value of the home
- Sell the home and then split the profit
- Buy out the other person’s financial obligation to the home
- Co-own the home
Divide Large Assets That Match the Value of the Home
In a situation where there are multiple large assets to be divided during a divorce, one party might agree to be awarded the home while the other party is awarded an equally valued piece of the estate. This might be another home. For example, one party might get the main home while the other party gets a vacation or second home of the same value. This also might be in the form of a non-real estate asset like a collection, shared stocks, a boat, or some other item.
Dividing up the largest assets and awarding the home to one person means that nobody has to deal with a property sale, realtors, or anything attached to the sale of a home and/or property.
Sell the Home and Then Split the Profit
In many cases, a home purchase is made taking the credit and income of BOTH parties of a marriage into consideration. In the situation of a divorce, it’s often a reality that one party cannot actually afford the mortgage or other expenses on the home without the other person. It also might just be the case that one party simply does not want the house and needs the money.
In the case of joint finances, some couples will decide on a simple 50/50 split. The house is sold, the remainder of the mortgage or loan is paid off, the realtor and associated sale and paperwork fees are paid, and each party gets a fair share of what’s left to do with as they please.
Even in a case where the couple do not have joint finances and one party has actually contributed more to a home payment or initial down payment, selling the home is still an option when divorced couples can agree on a fair split. If couples cannot agree to a fair split on their own terms, a judge is more than happy to make the decision.
Selling a home takes a little longer, so a divorced couple might have to deal with this after the divorce is finalized. Selling a house also means a divorced couple needs to agree on an agent and a listing price and coordinate on open houses, inspections, and the repairs needed.
Buy-Out the Other Person’s Financial Obligation to the Home
If one party of a divorce really wants to keep the house and has the independent finances to support both the mortgage and the other person’s contributions, buying out the other party is also an option. Buying out your past partner can involve paying them for half of the market value of the home and then putting all homeownership paperwork into that one person’s name. If there is a mortgage involved, a buyout might just include what was initially contributed for the down payment or another percentage of value.
Whatever the case, the money given toward the buyout cannot be connected to any other divorce payments or obligations. It’s a one-time, cash-in-hand agreement and payment.
Co-own the Home
For divorced couples that are amicable and work well together outside of marriage, co-owning the home might be the right option. During the divorce proceedings, a co-ownership agreement and plan are drawn up, discussed, and approved by both parties. Everything from payment expectations, utilities, repairs/maintenance, and future sales are discussed and agreed upon.
Sell the House Easily
Sometimes, the easiest way to settle a divorce is to liquidate the house and split the cash. For that, Cash for Vegas Homes can help. We buy houses for cash, and we can help you sell your house fast. You can get through this part of the divorce with much less hassle, and you’ll ultimately have a lot of cash in your pocket to start anew. Contact us today, and we’ll give you a no-obligation offer.