A divorce is one of the most traumatic experiences in most people’s lives. Having to get rid of the former family home is like adding salt to the wound. You are probably wondering is it really necessary to sell your house after divorce.
Selling a house is stressful. Going through a divorce is probably even more so. Combining these two sounds like a nightmare! However, dealing with the homeownership once your marriage is no longer working out is extremely complicated. It isn’t impossible for former partners to reach an agreement and you may decide not to sell your house after divorce in the end. Still, in such a situation, holding onto something that connects you to so many bittersweet memories isn’t a good idea. Not to mention the possible legal problems!
It’s always difficult when you have to sell your house after divorce, however this is the best option for both parties. At the same time, divorce can highly impact the entire home selling process. Here are some of the reasons why you should sell your house after divorce.
Some people manage to sustain a healthy relationship with their former spouse, at least until everything is dealt with. If you can work peacefully and in cooperation with your ex-partner, you can probably discuss the best options together and agree to sell a house after divorce in such a way that both of you will profit. In other cases, however, this process is filled with both good and bad.
Both partners contributed in a way into purchasing or building that home. Even if it seems that one did more than the other, both of you have legal rights to your share. This usually requires that you go to court and make an agreement – on your own, or through mediation. If the agreement can’t be made, the court will have to decide instead of you. Keep in mind that the judge will rarely decide in such a way that both partners will be happy. This makes the court process rather unpleasant. Because of such reasons, we would always recommend you trying to make an agreement beforehand.
Maybe you don’t want to sell your house after divorce and you want to continue living in it. Once again, your spouse has every rights to this, as well. It’s much more straightforward to sell your property and then deal with the finances compared to dealing with the property itself. If you do decide that one of you gets to keep the house, you have to determine the value of the home, so that the other person can get their fair share.
Divorce is a cause of some serious financial concerns, especially when there is a house involved. First of all, your mortgage is likely based on your incomes combined. If one of you keeps the house, your income is cut in half but your mortgage stays the same. This is the main reason why you may decide to sell your house after divorce. Not only that, but now there’s only one of you to pay taxes, utility bills and other homeownership expenses. This can be too much to handle, especially after such a difficult period of life.
Not only that, but if you decide to sell a house, you may get capital tax ramifications. In other words, if you are married and selling a property, you can exclude even up to $500,000! On the other hand, if you are single, you can only gain exclusions of up to $250,000. In other words, it may be better to sell your house even while you are still legally married. You can file a tax return together or separately. If each files its own tax return, each of you can still claim up to $250,000 of exclusions, if you have met the two out of five years in the home.
Liability reasons are typically enough to seal the deal when you are questioning should you sell your house after divorce. If one of you decides to keep the house, the other person has certain rights. For example, if you have children together and you decide to keep the house, your spouse has legal rights to stay in your house. Luckily, it rarely gets this extreme.
Some of the things you can do is agree to co-own the home and to stay on mortgage together. This comes with risks, however, as if the spouse who stayed in the house can’t make any more payments, the spouse who left can still sustain credit damage.
Other option is for you to take over the entire mortgage and make the payments alone. To do so, you have to qualify first, the same way as if you were just purchasing a house. If you don’t have a high enough income, you won’t be deemed capable of making such payments.
As both of these scenarios aren’t pretty or easy, it is better to simply give up the home altogether.
One of the biggest issues with keeping the home you have spent you married days into are the emotions you would have to deal with. Humans are emotional beings and staying in the same place where you once lived happily can make people depressed. Not just that, but if you have had a bad marriage, staying in the same house can bring traumatic memories back. This tends to be too much to handle.
Sell Your House Fast during a Divorce
If you are going through divorce and you have agreed on not wanting to keep your mutual property, the best option you have is to sell your house to a direct buyer. A traditional sale of the house takes too much time, and it might even delay your divorce process, which isn’t something you’d want. A reliable direct buyer in Milwaukee, such as Sparks Property Investors LLC, could take away that burden from you quickly and leave you with cash. When you sell a house this way, you may even be able to close the sale in just 7 days! This leaves you with more time to deal with your emotions and other legal issues.