Divorce is a challenging reality for many couples. In the United States, the American Psychological Association reports a divorce rate of around 40 to 50% for first marriages. When a marriage ends, questions about the division of shared assets, including real estate, often arise. Is a 50/50 split of all assets required?
Can You Divorce Without Selling the House?
When going through a divorce, you have choices regarding the fate of your shared home. One option is to retain the house while the other is to sell it and divide the proceeds equally. The initial step involves informing your legal representatives and the Court about the date of acquiring the property. This crucial detail plays a significant role in determining whether the house should be sold and the assets distributed fairly, or if the property does not fall under marital assets.
If the Court categorizes the property as “separate property” – which includes homes bought before the marriage, received as a gift or inheritance, or purchased using individual funds at any point – the spouse typically holds no claim to this asset in both community property and equitable distribution states. There might be exceptions, such as if improvements were made that increased the property’s overall value. Consulting with a legal expert can help ascertain whether a property qualifies as 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?
When going through a divorce, the division of assets is governed by State law. These laws have a significant impact on how your marital assets will be split. The majority of states adhere to equitable distribution laws, where a judge will allocate your property based on what the Court deems as fair. This may not necessarily result in an equal split, as it considers various factors such as individual contributions to the household, like child-rearing responsibilities.
Nine states operate under community property laws, namely: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska also follows community property laws if chosen. In these states, all assets acquired during the marriage (known as marital property) are typically divided equally, with a few exceptions.
Various options are available for both you and your spouse or the Courts to decide on regarding the sale (or retention) of your marital home.
One of the spouses buys out the other legal interest and keeps the home
Married homeowners residing in a community property state typically split assets equally in case of a divorce. However, this doesn’t always mandate selling your home. It’s possible to discuss with your spouse in court to settle their legal claim to the house, allowing you to retain ownership. To achieve this, you must be capable of becoming the sole individual on the property title within the court-specified timeframe post finalizing the divorce decree.
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 several states, a custodial parent may have the right to live in the home until their child turns eighteen. The Court will determine whether the occupying spouse is responsible for expenses like mortgage payments, bills, and insurance during this period. Ownership of the house would typically remain with the occupying spouse until all children are of legal age, at which point the property would be sold and the proceeds divided between the spouses.
Co-own the home
Divorce doesn’t have to be a contentious battle, especially when it comes to shared property ownership. Co-owning a property can be a beneficial arrangement for the family’s well-being, whether the spouses choose to live together or separately. This setup can be particularly advantageous for couples with children who wish to maintain stability by keeping them in the same home. For instance, consider a scenario where a husband and wife, who have three children, decide to both remain on the mortgage to minimize disruptions. The husband, as the primary breadwinner, may lack the job history or financial means. Meanwhile, the wife, as the main caregiver, may not have the resources to buy out her husband’s share in the property.
This arrangement offers stability for the family unit, albeit contingent on trust between the departing spouse and the one staying in the property to make timely payments. It’s crucial for both parties to uphold their financial responsibilities to avoid any negative impact on their credit scores.
The house is sold immediately and any equity is split up
When considering options for handling the property, selling the house outright can appear to be the most direct approach. The property is listed on the market at an agreed-upon price, and once a buyer is found, the proceeds are typically divided evenly or according to the Court’s instructions. The speed of this process can vary based on the real estate market conditions in Texas. In instances where the local market is slow-moving, the property is in disrepair, or there are existing liens on the title, a traditional home sale may not be the most suitable choice. In such scenarios, opting to sell the property directly to a specialized homebuyer or investor could present a quicker and more convenient path to selling the property and moving forward with your plans.
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
Prior to listing the property for sale, it is essential to establish property division through legal channels such as lawyers or the Court, especially in the case of a divorce. Divorce proceedings can be emotionally challenging, so entrusting the sale of real estate to professionals experienced in handling such situations is highly recommended.
2. Agree On Home Sale Specifics
When it comes to selling your house, you and your partner must make a crucial decision. Do you opt for a quick sale to divide the assets swiftly and move forward, or do you invest extra time and money to enhance the property’s market appeal for a potentially higher selling price in the current market conditions? If an agreement cannot be reached with the assistance of your legal counsels, legal intervention may be necessary.
If you choose to allocate funds for necessary repairs and upgrades, it’s essential to agree on how to split these costs and how this investment will impact the eventual profit distribution. Before making any further expenditures, ensure to finalize these arrangements with legal guidance to prevent any unforeseen issues during the closing process.
However, managing expenses and profits is just the beginning. How will the property be handled during the listing period? Whose real estate agent will be engaged? At what price should the house be listed? Will it remain vacant, or will one of you reside in it until it’s sold? Who will take care of the mortgage and utilities, and if the property is unoccupied, who will ensure it’s ready for open houses and daily viewings? If feasible, it’s advisable to have your attorneys resolve these matters before resorting to litigation. This approach can save time and safeguard your profits against being consumed by legal fees for courtroom representation.
3. Know What to Expect in Order to Close the Sale
When selling a property with an ex-partner, it’s crucial to approach the process with a level head, especially when reviewing offers from potential buyers. In a competitive market like Texas, where multiple offers may come in, it’s essential to be prepared for negotiations. Establishing a clear strategy before listing the house can help streamline this decision-making process. Whether you opt to accept the first offer with no contingencies or aim for the most profitable deal, reaching a mutual agreement beforehand is key to a successful sale.
4. Divide the Proceeds
As you near the conclusion of your divorce proceedings, the division of proceeds from the sale of the house should be one of the final matters to resolve. Whether determined by the Courts or through collaboration with your legal representation, it’s crucial to have clarity on how the funds will be split. Any outstanding liens or financial obligations tied to the property will be settled by the escrow company prior to the disbursement of funds, enabling you to take the next steps in your life with peace of mind.
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5. Sell Your House AS-IS to A Cash Buyer
Are you stuck in a situation where you and your ex-partner can’t (or don’t want to) speak? Are you ready to be out of the marriage and on to the next phase of your life? Is the stress from the divorce eating away at you, and a fast and straightforward sale of your shared marital property seems like the best option for everyone? Selling your property to a direct cash home buyer or investor might be the right option for you!
Investors and direct home buyers pay cash for properties, no matter what the condition or the owners’ financial (and marital) situation. They specialize in fast closings so that property owners can get out from under a property faster than with a traditional home sale. They also purchase houses and properties as-is, meaning that even if the house needs upgrades or major repairs, they still are willing to pay cash for it and close as quickly as possible. For two spouses stuck in a painful and expensive divorce, this might be the best option for the family. Not only are they able to sell the house for a fair cash amount, but they’re able to close quickly and without having to negotiate terms through lawyers and a shared real estate agent.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
Looking to sell your house in Texas quickly and without the stress of traditional selling methods? Gravitas Property Group is the solution you’ve been searching for. We specialize in buying houses for cash, regardless of their condition or the homeowner’s financial circumstances. Say goodbye to real estate agents, lawyers, and extra fees – our competitive cash offers make selling your house a breeze. Reach out to us anytime at (817) 646-5515 to explore the benefits of a direct home sale with a trusted local company known for a seamless process and transparent transactions.
Dealing with a divorce and need to sell your property promptly? Look no further. Gravitas Property Group is here to provide you with a fair cash offer for your house or rental property, no matter its current state or your financial status. Whether your property has been vacant for years or recently damaged, we are prepared to purchase it. Once you accept our offer, our team will manage all necessary repairs and upgrades, sparing you the time and expense. Selling a house during a divorce can be stress-free with our dedicated team by your side.