Divorce can be a challenging, costly, and time-consuming experience.
One of the most valuable assets a couple owns together is their home, yet many couples simply cannot afford the mortgage payments or upkeep costs post-divorce. Selling may therefore be necessary.
Getting a Quitclaim Deed
Use of a quitclaim deed is an effective way to transfer property ownership between two trusted parties. The document typically outlines who is granting and receiving ownership and when, along with details specific to your transaction. Both parties must sign and notarize before it becomes valid.
If you’re going through a divorce, selling a house after divorce may be an attractive solution for both parties involved. By buying out your spouse and refinancing under your own name alone, the likelihood is increased that a higher sales price could become achievable over time.
Keep in mind, however, that any profits after sale must be taxed as capital gains and your attorney can advise on whether selling is appropriate for your circumstances. Divorcing couples may need to sell their home as part of the divorce proceedings;
Refinancing the Mortgage
Refinancing can help divorcing couples divide property more equally during divorce, by placing the mortgage debt in only one spouse’s name and relieving him or her of responsibility for repayment of it.
This option may be ideal if the home has significant equity; however, lenders may require both spouses to share responsibility for debt regardless of any divorce decree terms.
Notarizing a quitclaim deed can make the process simpler, but speaking with a financial planner and mortgage professional will still give you a clearer idea of the implications of refinancing. They can give an accurate assessment of its potential effects on your future finances; then you can decide whether to proceed with refinancing or sell the house; often selling is best as it eliminates arguments over small belongings and reduces stress of managing jointly owned assets.
Selling the Home on Your Own
Many couples consider their home one of their biggest assets, yet when they get divorced it can be challenging to decide who gets to keep it. Sometimes a court must step in to make this determination. One way for spouses to avoid forced sale of their property during divorce proceedings is buying out one another’s interest with an initial divorce settlement payment if both can cover mortgage, taxes, insurance premiums and maintenance without depleting savings accounts or future earnings to make these payments.
However, this approach can still be costly and time consuming. Furthermore, listing the house on the market could expose its contents and invite lowball offers from nosy neighbors or out-of-towners looking for deals. A much more suitable solution would be working with a real estate agent who can facilitate an offer quickly while keeping everything confidential.
Selling the Home for Cash
If the couple doesn’t have sufficient assets to buy out each other or simply do not wish to face the difficulties associated with maintaining the home, selling may be their only viable solution.
When setting the selling price of your property after divorce, it’s essential to enlist the assistance of an agent familiar with these situations. They will conduct a comparative market analysis to provide an accurate and up-to-date estimation of its worth; in addition, closing costs and selling fees should also be factored into their calculation.
As part of the final step in selling their house, divorcing couples must make it available to potential buyers and wait for offers to come in. To prevent gossip from discouraging potential buyers from making offers or leading them to make lowball offers, some divorcing couples utilize pocket listings; this method allows them to sell without publicly listing it and is usually much faster and simpler.