Marital separation is complex no matter what, but selling your house due to a divorce can be extra time-consuming and frustrating. Who gets what percentage of the profits, and how much should you sell the house for? What if both of you are on the mortgage contract?
Today, let’s break down some advice you can use when selling a home you jointly own with your former spouse.
Selling Your House Due to a Divorce: Don’t (Both) Move Out Immediately
Firstly, both of you should not move out of the property ASAP. One person should stay in the home, not only to ensure mortgage payments are still made but also to keep the property attractive for buyers.
Empty houses without a lot of furniture are oftentimes tougher to self or realtors or agents. If the home still looks lived in but is neat and tidy, it may fetch a higher price and might sell more quickly on the open market.
Agree on Price
Naturally, you and your former partner must agree on a price for selling the home. You can get an official appraisal or use your real estate agent to get a comparative market analysis/CMA for the property.
Once you’ve agreed on a potential price or price range with the other homeowner, hire an escrow company to take the sales funds and divide them properly. The escrow company can also make sure you pay off any obligations to the house or closing fees before divvying up the remaining cash.
Consider a Cash Offer
Rather than going through the time-consuming process of a traditional finance home sale, you might consider seeking out a cash offer from a cash buyer. Cash buyers purchase homes for their full asking prices in cash, so these deals are much faster and more flexible. They also oftentimes come with fewer closing costs, meaning you and your former partner may walk away with more money than you would otherwise.
Don’t Make a Rush Decision
Whatever you do, don’t rush to sell a house or make any other hasty decisions. Selling your house can have wide-ranging consequences for your finances, your upcoming court hearings, and the percentage of other property you receive after the divorce.
Be sure to speak in-depth with your former spouse or their attorney about selling a home that you both own. In some cases, you may not even be able to sell a home that you own with your former spouse unless you both agree to the sale beforehand.
Selling Your House Due to a Divorce: How to Divide the Profits
For many divorcing couples, the tricky part comes when it’s time to divide profits. Many divorcing couples opt to pay for marital debts, such as fees for divorce attorneys, with the proceeds from the house sale.
However, you and your former partner may also decide that profits beyond those payments should be split evenly or unevenly. For example, if one partner puts more work into the house, that partner may receive 60% of the remaining profits, while the other partner gets 40%.
Or, if a single spouse has been making any mortgage payments post-separation, they’ve been reducing the principal and increasing equity in the home. They’re most likely entitled to a slightly higher share of the profits as a result.
In the end, selling any property after divorce can be time-consuming, but it doesn’t have to be if you contact a cash buyer. Cash buyers can help you move on rapidly after a divorce and allow you to get out of a mortgage with as much money as possible. Contact KC Property Guys today if you’re selling your house due to a divorce.