What You Need to Know When Selling a House During Divorce
The dissolution of a marriage relationship is often one of the most difficult experiences in a person’s life. If you are also a property owner, selling a house during divorce proceedings can present a few challenges.
Chattanooga Property Solutions shares this quick primer on what to expect when selling your house during a divorce. Next time you find yourself searching for ways to “sell my house fast in Chattanooga,” why not give us a call?
Selling a House During Divorce: What You Need to Know
Divorce often involves financial changes. When you’re separating, it may be in both your and your spouse’s best interest to sell the house. If you both own the house, the main question will be how to sell the house and divide the assets equitably during the divorce.
Generally, house sales for divorced couples will proceed in one of three ways:
- The couple sells the house outright. The two parties split the equity fairly.
- One spouse buys out the other. That spouse then owns the home.
- One spouse uses and occupies the home until the youngest child is 18. After that, the couple sells the home as per the divorce agreement.
Still, these scenarios differ depending on the specific asset arrangement and the amiability of the divorce. Amicable divorces sometimes retain the home with co-ownership options. If divorcing spouses cannot come to an agreement, they may take the sale to court to decide the division of proceeds.
Selling a House During Divorce: A Good Idea?
It isn’t always necessary to sell your house during divorce settlements but often it is a preferred option. Below are some reasons why selling your house and starting afresh might be a good idea.
Financial Burden
Did you buy the house with a dual income? Neither one might be able to afford to take on the entirety of the following:
- Mortgage obligations
- Taxes
- Insurance
- Maintenance
Selling the house might make the most sense. That way, you can split the equity and capital gains tax or use the funds for moving into a new home in your price range as a single earner.
Liability Purposes
Owning any property always comes with liability. If neither spouse wants to deal with the potential liability aspect of owning a home, selling may be a better option.
One of you might have the funds to continue paying for the house but then have to refinance a loan with the reported income changing. If your lender isn’t willing to back you as a single owner, alternative options could prove helpful.
Legal Reasons
Lastly, divorces can be messy. Is there a lot of animosity on the topic of splitting assets?
Selling your shared home might be a compromise. It could even prevent you from going to court, which can alleviate stress and save time.
We Buy Houses in Chattanooga!
Whether you’re selling a house during probate or seeking some help selling a house during divorce negotiations, 20 years of experience in the industry ensures we can help. Contact Chattanooga Property Solutions online or call (423) 454-3070 to speak to our team today!