Selling a House During Divorce: What You Need to Know

If you’re in the process of selling a house during divorce, you are not alone. There are resources available to you.

Read on to start the process.

Find the Right Agent

When couples get married, they go in into the marriage thinking it will last forever. However, between 42 to 45 percent of marriages end in divorce.

Sadly, divorces can be a long emotional process, especially when couples own a home together.

Although there are many qualified real estate agents that can help you sell your home, you should look for a real estate agent that has handled these matters before.

When a couple is in the process of a divorce, they might need more guiding than if they were selling a home under normal circumstances. One or more of the parties might be going into the sell with feelings of mistrust and anger.

They often want reassurance their agent will remain impartial and look out for the interests of both and not favor one over the other.

Even though they’re looking for a real estate agent, couples really see their real estate agents as advocates.

Don’t Let Feelings Get in the Way

When it comes to dividing assets during a divorce, it’s difficult not to get emotional.

However, couples who let their emotions get the best of them often sabotage the sale of their home without even knowing it.

If you’re going through this difficult time, it’s important to keep your feelings in check when it comes to the sale of the home.

It’s not uncommon for one of the parties to stop a closing because they let their feelings get in the way. The best thing you can do is keep your emotions in check if you want the sale to go as smooth as possible.

Avoid Feeling Rushed

During a divorce, many people feel suffocated by uncertainty regarding the rest of their lives. Some couples might feel the need to jump into the first offer they get.

Jumping into something too quickly might make one or more of the parties regret it later. If you’re feeling like you’re rushing into selling or accepting an offer, it’s time you speak up.

Talk to someone about how you feel and get their advice. When you absolutely can’t communicate with your spouse, you can always talk to a therapist, lawyer, or your realtor. You’re less likely to feel rushed if you express your feelings on the subject.

Agree On the Price

When you’re in the process of going through a divorce, it might seem like you and your spouse can’t agree on anything. However, if you’re going to sell the home, both of you need to be on the same page.

Before your agent starts showing the home, it’s important that you both answer some important questions. You can hire a mediator if you feel you won’t be able to reach an agreement on your own.

Decide the following:

• What are your expectations?
• What is your bottom line price?
• Are you willing to pay for repairs?
• Who will live in the home during the process?
• Are you willing to stage?
• Who will be more involved in the process?
• Is everyone okay with house showings?
• How will you decide on the pricing?
• What are the non-negotiables?

Answering these questions beforehand will prevent you from any delays when it comes time to seal the deal.

Get Your Story Straight

When you’re in the process of selling your house, you can be sure potential buyers are going to ask why you’re selling the house.

You need to get your story straight before you meet with potential buyers. If you tell them you want to sell because you’re getting a divorce, they might come back at you with a low offer.

Buyers could get the idea you’re in a rush to sell your house and propose a low offer.

Although it’s not advisable to lie, you do need to choose your words carefully. Sometimes you can just tell potential buyers you’re in the process of downsizing.

Don’t Move Out Right Away

Although divorcing couples might want to move out of the house right away and get on with their lives, it’s not advisable for them to do so.

It’s important for at least one of the spouses to stay living in the house during the sale of the house. If both spouses move out, they will likely take their stuff with them, and then you’ll be left with an empty house.

Of course, you can always stage the house. However, staging is expensive, and if you’re going through a divorce, you might not want the added expense. On average, a divorce costs around $15 thousand.

Also, staying at the house will keep costs lower than having to pay for another home.

If you have children, it can also help them keep their routines normal for as long as possible.

Get All the Professional Help You Can

Getting professional help with the sale of your home might not be another expense you want to add to your plate. However, divorcing couples tend to not want to cooperate with each other as much.

If you have already decided on an expert realtor, consider also getting a real estate broker or an attorney to help you in the process.

Consult a Tax Professional

When you sell your house, you will have to pay for a capital gains tax on the profits you make. Depending on your local real estate tax laws, the tax can be as high as 23.8%.

In order to learn what types of exceptions you will qualify for, you should speak with a tax professional. The last thing you want is to be blindsided.

Selling a House During Divorce: Bottom Line

Selling a house during divorce can be a draining process for all the parties involved. Now that you know these tips, you will be able to see the light at the end of the tunnel.

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