Divorce. When we first fall in love we can’t imagine a marriage ending in divorce, but it’s also sadly a common reality. The American Psychological Association puts the rate of divorce for citizens of the United States at approximately 40 to 50% for first marriages. But what happens to shared assets, such as real estate, when a marriage ends? Do you have to split all assets 50/50?
Can You Divorce Without Selling the House?
You have options when it comes to keeping a house during the divorce or selling it to split 50/50. The first step is letting your lawyers and the Court know the date you acquired the house. This important piece of information can help decide whether the house will need to be sold and the assets divided equitably, or if the house is not considered a marital property.
If the Court decides the property is a “separate property” – i.e. purchased before the marriage, gifted or inherited to you as an individual, or purchased with separate assets by you at any time – in both community and equitable distribution states, the spouse has no rights to this property. There may be some exceptions to this, such as in a case where the property was updated in a way that added to the overall value of the house. A lawyer will be able to help you decide whether a property is considered separate or a marital asset.
A court will look at several factors to decide who gets the house, including:
The value of the property.
The financial circumstances of each partner.
The employability of each partner.
Both physical and monetary contributions to the marital home.
The age and physical and mental health of each partner.
The amount of time each partner will have custody of the children.
Who Gets The House in A Divorce?
During a divorce, it’s State law that will govern the division of assets. These laws play a heavy role in how your marital assets are divided. Most states follow the law of equitable distribution. In these cases, during a divorce a judge will divide your property in a way that the Court considers fair. This doesn’t necessarily mean evenly or equally but can be based on a number of factors, including individual contributions to the household (such as child rearing).
There are nine states with community property laws. They are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska has community property laws as well, but only if you opt in to this method. In community property states, all assets obtained during the marriage (i.e. marital property) are divided 50/50 with only a few exceptions.
There are a few options both you and your partner and/or the Courts might choose when it comes to selling (or not selling) your marital home. These include:
One of the spouses buys out the other legal interest and keeps the home
For married homeowners who live in a community property state, you and your spouse will split all assets in half. Does this mean that you’ll need to sell your house? Not necessarily! You can negotiate with your spouse in Court to pay off their legal interest in the house so that you can keep it. To do this, you would also need to be able to be the sole person on the title in a timeframe required by the Court after the divorce decree is agreed on.
One spouse keeps use and occupancy of the home for a specified period; typically when the youngest child turns eighteen, then the house can be sold.
In many states, a parent with custody of minors may be allowed use of the house until the child reaches the age of eighteen. Depending on what the Court decides, the spouse allowed occupancy may or may not be responsible for paying the mortgage, bills, insurance, etc, and the house would be theirs until a time when all children reach the age of eighteen. Only then would the house need to be sold and the assets divided between spouses.
Co-own the home
Divorce doesn’t have to be an emotional and monetary war. The ability to co-own a property might be the best situation for the family’s welfare, whether together or separate. If you have children and want to keep them in the same house, you could both stay on the mortgage to create as little disruption as possible. An example of this would be a wife and husband who have three children. The husband works outside of the home and is the sole provider of money for the couple, but the wife is the main care provider for their children. With her status as homemaker, she may not have the funds, job history, or ability to buy out her husband’s percentage in the property.
There are some benefits of this situation, including stability for the family, but it would require trust by the departing spouse that their previous partner will be able to make their payments on time. Otherwise, both partners would take a ding on their credit record.
The house is sold immediately and any equity is split up
In some ways, selling the house can be the simplest and most straightforward solution. The house is put up on the market at an agreed upon price and, once it’s sold, the assets are split up either 50/50 or as the Court designates. Depending on the market in your area, this could be a very fast solution (or very slow). If your area’s housing market is sluggish, the house is in poor repair, or there are liens against the title, a regular home sale might not work for your situation. In those cases, selling the property directly to a direct homebuyer or investor might be a faster and easier way to get the property sold so you can move on with your life.
Selling Your House During A Divorce?
Contact Us For Your Cash Offer Today!
Steps to Sell a Home During Divorce
1. Hire A Divorce Specialist Real Estate Agent
Before listing your house on the market, the first crucial step is determining asset division during the divorce process. Emotions can run high during a divorce, which is why it’s essential to enlist the expertise of real estate professionals specialized in handling property sales in such situations. Let experienced professionals navigate you through this challenging period.
2. Agree On Home Sale Specifics
Collaborate with your partner to decide on the best approach to selling the house. Determine if a quick sale for asset division suits you or investing some time and money in repairs for a higher market value is preferred. Clarify expense sharing, profit distribution, listing management, agent selection, pricing strategy, occupancy, and property maintenance responsibilities. Resolving these aspects beforehand with legal guidance can save time and prevent additional legal costs.
3. Know What to Expect in Order to Close the Sale
Prepare to assess offers together objectively. In a competitive market, multiple offers may necessitate careful consideration with the help of legal and real estate professionals. Establish a pre-sale strategy to streamline decision-making, whether prioritizing quick sales or maximizing profits. Alignment on this strategy before listing is crucial for a smooth selling process.
4. Divide the Proceeds
As the final step, ensure a clear understanding of how the sale proceeds will be divided based on legal agreements. Address any existing obligations or liens on the property for a seamless distribution of funds through the escrow process, enabling both parties to move forward post-sale.
5. Sell Your House AS-IS to A Cash Buyer
If communication with your ex-partner is challenging or you seek a swift resolution post-divorce, consider selling your property to a cash buyer. Cash buyers offer quick transactions regardless of property condition or financial circumstances. By selling as-is, you can expedite the selling process without the need for extensive negotiations, providing a viable solution for a smoother transition post-divorce.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
Lafayette Cash Home Buyers is a local house buying company that’s built their business by buying houses for cash, no matter what the condition or the homeowners’ financial situation. We promise competitive cash offers without the hassle of dealing with real estate agents, lawyers, and more. If a direct home sale sounds like the best option for you, let’s chat! Call us day or night at (337) 366-0230. We have a reputation for buying houses with less stress and less fees.
If you own a property that you need to sell fast due to divorce, we have a solution. Contact us today and get a competitive cash offer for that house or rental property. We buy homes, no matter what your individual financial situation or the property’s condition. Even if the house has been neglected for years or suffered damage in the last storm, once you accept our fair cash offer our team of experts will handle all of those expensive repairs and upgrades so you don’t have to! We make selling a house during a divorce as hassle-free as possible.