Divorce, Real Estate and the Sale
Divorce already is a stressful experience, but dividing your assets and properties can make the process even more difficult. NerdWallet interviewed real estate experts to discuss how to sell and divide your home after a divorce.
To determine the value of your home, you should first get an appraisal from a professional. Consult with your attorney to see if selling or buying out the other spouse makes sense.
How to divide the real estate during a divorce
Dividing property and assets is one of the most difficult aspects of divorce. While it's easy for couples divorcing to reach an agreement on financial matters like retirement funds and bank accounts, real estate can present a more complicated situation. Many couples consider their home to be their most valuable asset. They also have an emotional attachment.
You should be aware that each state has different rules regarding the division of property. Some states use community property laws and others equitable division rules. According to community property law most assets acquired in marriage are considered marital properties and are therefore equally divided by both parties during a divorce. This rule is not applicable to gifts or inheritances.
In equitable division states judges divide the assets and liabilities of a couple according to what they consider fair in the circumstances. For example, this could mean that one spouse receives the family house, at the cost of other assets which the other party may have wanted to keep.
How to Sell Real Estate in a Divorce
Divorce usually involves the division and sale of assets. Real estate can be one of the hardest assets to divide if you bought it during your marriage. The family home is often a symbol for the end of the marriage, so selling it can be an emotional experience.
The division of profits can also be difficult. This is something that both parties should decide on. The proceeds could be used to pay off marital debt or assist an ex-spouse in a new down payment for a home.
You should avoid hiding assets. You should not hide assets. If you do, the judge will reopen the case and reevaluate your property division. By maintaining complete transparency and completing an accurate list of all assets, you can protect yourself. It is important to pull your credit history and obtain login credentials for all accounts owned jointly. This will give you a clear picture of all your finances that you can present to the divorce court.
How to buy a home after divorce
Divorce, and especially the division of property, can be confusing. You should consult an attorney if you want to buy a home after your divorce. This will help you understand the state laws and what rights your spouse has.
A real-estate expert can help you to determine the value and best division of the sale proceeds. This is a crucial step to avoid costly pricing errors in real estate that lead to home sales failures.
Real estate can present a difficult issue during a divorce. However, it can be an opportunity for couples who want to start anew. It can be easier to settle a divorce without waiting for the sale of the house. Couples may agree to a fair division of the assets, such as if they own a boat, inherited lands, or stock portfolios.
How to pay for property in a divorce
If it was not purchased separately before the marriage, then most real estate, whether used for investment or as a primary home, is marital property and, therefore, subject to an equitable distribution. This includes residential homes as well as commercial properties.
If an asset has a mortgage, that debt is transferred to the owner. However, other debts that are not "associated" (such as credit card debt) will be split evenly between the two ex-spouses.
To help you decide how to divide the value of your home or another piece of property, having outside financial experts determine the accurate market value is helpful. This will help to avoid a conflict that may end up in court.
To make the transaction go more smoothly, it is often better to sell the house and divide the proceeds. This will remove ongoing costs such as mortgage payments, taxes and maintenance from the equation.
Yitzchak Pierson, REALTOR® – eXp Realty LLC, New Braunfels TX
458 Russian Sage, New Braunfels Tx 78130
(512)-749-6532
[email protected]
Divorce already is a stressful experience, but dividing your assets and properties can make the process even more difficult. NerdWallet interviewed real estate experts to discuss how to sell and divide your home after a divorce. To determine the value of your home, you should first get an appraisal from a professional. Consult with your…