When love is new, the idea of a marriage ending in divorce feels unimaginable. Yet, unfortunately, divorce is a reality for many. According to the American Psychological Association, around 40% to 50% of first-time marriages in the U.S. result in divorce. But what happens to jointly owned properties, like your home, when a marriage comes to an end? Are all shared assets divided equally, or are there other factors to consider when splitting real estate?
Can You Divorce Without Selling the House?
If you’re going through a divorce, you may have the option to either keep your house or sell it and split the proceeds evenly. One of the first things you should do is inform both your legal team and the Court about when the property was purchased. This key detail could influence whether the home is considered marital property, which would typically require an equitable division, or if it’s classified differently, possibly excluding it from the assets that need to be split.
In some divorce cases, the Court may classify a property as “separate property.” This typically means the home was either bought before the marriage, inherited, gifted, or acquired using funds that are entirely yours. In both community property and equitable distribution states, if the property is deemed separate, your spouse generally has no claim to it. However, there are exceptions. For instance, if significant improvements or upgrades were made to the property during the marriage, which increased its overall value, the property might no longer be considered entirely separate. Consulting with a lawyer can help you determine whether your property will be categorized as separate or marital in your specific situation.
When determining which spouse will retain ownership of the marital home, the court takes several important factors into account, including:
Property Value: The current market value of the home will play a significant role in the division of assets.
Financial Standing: Each partner’s overall financial situation, including income, assets, and debts, will be evaluated to ensure fairness.
Employment Prospects: The ability of each spouse to maintain or secure employment can influence who is better positioned to afford the house.
Contributions to the Home: Both financial and physical contributions to the property—such as renovations or payments toward the mortgage—are considered.
Age and Health: The court may take into account the age and physical or mental health of each spouse when making a decision.
Custody of Children: The amount of time each parent will have custody of the children may weigh heavily in the decision, especially if maintaining stability for the children is a priority.
Who Gets The House in A Divorce?
When going through a divorce, the division of assets is largely governed by state laws, which significantly influence how marital property is divided. The majority of states adhere to the principle of equitable distribution. This means that, rather than splitting assets exactly down the middle, the court divides them in a way it deems fair. However, “fair” doesn’t always translate to “equal.” Several factors are taken into account, such as the contributions each spouse made to the household—whether financial or through non-monetary efforts like raising children.
In the U.S., nine states operate under community property laws: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska also has community property laws, but only if you and your spouse choose to opt in. In these states, marital property—assets acquired during the marriage—is typically split equally, with a 50/50 division. However, there are some exceptions to this rule, which may vary depending on the specific circumstances surrounding the assets.
When navigating the process of divorce, there are several paths you and your spouse—or the Court—can take regarding what happens to your marital home. These options include:
One of the spouses buys out the other legal interest and keeps the home
If you’re a homeowner in a community property state, you and your spouse will generally split all marital assets 50/50. But does that mean you have to sell your house? Not always! Instead of selling, you may have the option to negotiate with your spouse in Court to buy out their share of the home. By paying off their legal interest in the property, you could retain full ownership. However, you’ll also need to ensure that you can transfer the house’s title solely into your name within the timeframe set by the Court, following the finalization of the divorce.
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, if one parent is granted custody of minor children, they may be permitted to live in the marital home until the youngest child turns 18. The Court will decide whether this arrangement includes the responsibility for covering the mortgage, utilities, insurance, and other related expenses. Depending on the ruling, the spouse living in the home may or may not need to handle these costs. Once the children reach adulthood, the home is typically sold, and the proceeds are then divided between both spouses.
Co-own the home
Divorce doesn’t have to be a battle over assets or create unnecessary financial stress. In some cases, co-owning the family home may be the most practical and beneficial option, especially when children are involved. If both parents want to maintain stability for their kids by keeping them in the same home, remaining on the mortgage together could minimize disruptions. For instance, consider a scenario where a husband and wife share three children. The husband, who works full-time and provides financially, and the wife, who primarily cares for the children, might find it challenging to divide ownership of the home. Given her role as a homemaker, the wife may not have the financial means, work history, or credit needed to buy out her husband’s share of the property. In such cases, co-ownership can offer a solution that supports the family’s well-being, even after the marriage ends.
In some divorce cases, co-owning a home can provide significant benefits, particularly when children are involved. One major advantage is the stability it offers the family, allowing children to remain in the same environment without major disruptions. By staying on the mortgage together, both spouses ensure the continuity of housing without forcing an immediate sale or buyout.
However, this arrangement also requires a strong level of trust between both partners. The spouse remaining in the home must reliably make mortgage payments on time, as failure to do so could negatively affect the credit scores of both parties. This means that any missed or late payments could impact the financial future of both individuals, adding a layer of risk to the decision.
The house is sold immediately and any equity is split up
In many cases, selling the marital home can seem like the simplest and most efficient solution during a divorce. By agreeing on a listing price, the property is placed on the market, and once it sells, the proceeds are divided between both parties—either evenly (50/50) or according to the Court’s ruling. However, the speed of this process heavily depends on the current housing market in your area. If the market is hot, your home may sell quickly, providing a clean break for both spouses.
But what if the local market is sluggish, the property is in need of major repairs, or there are liens complicating the sale? In these situations, a traditional sale may not be ideal. An alternative could be selling the home directly to a real estate investor or a direct homebuyer. This option can offer a quicker, hassle-free sale, allowing both parties to move on without the lengthy delays often associated with a standard home sale.
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 home for sale during a divorce, it’s essential to determine how the assets will be divided—whether through negotiations with your lawyers or by the Court’s decision. Divorce can be an emotionally charged and challenging time for both parties, making it difficult to manage important decisions alone. Seeking guidance from real estate professionals who specialize in handling sales during divorce can help you navigate this complex process with clarity and expertise.
2. Agree On Home Sale Specifics
When selling your home during a divorce, you and your partner will need to agree on the approach. Would you prefer a quick sale to divide the assets and move forward with your lives, or would it make more sense to invest extra time and effort into fixing up the property to get it “market ready” and maximize the sale price? This decision can be influenced by your financial needs and timelines. If you and your spouse are unable to reach an agreement, it may require the involvement of the Court to determine the best course of action.
If you and your partner choose to invest in repairs or upgrades to make your home more market-ready, it’s crucial to come to an agreement on how those costs will be shared. You’ll also need to decide how the added value from these improvements will affect the final division of profits once the house is sold. Before spending any money, make sure these arrangements are documented and finalized with a lawyer to protect both parties. This ensures you won’t face any surprises at closing and that your investment is properly accounted for.
Financial concerns are only part of the equation when selling a home during a divorce. You’ll also need to address important logistical questions: How will the home be marketed and listed? Will you both agree on a real estate agent, or will one of you take the lead? What’s the right price point, and will the house remain occupied or sit empty during the sale? If one of you stays in the home, who will be responsible for mortgage payments, utility bills, and keeping the house presentable for showings or open houses?
If the home is unoccupied, who will ensure it’s maintained and ready for potential buyers? Ideally, you should work with your lawyers to negotiate these details before involving the Court. Resolving these matters outside of a courtroom can save time and help preserve more of the profits from the sale, preventing them from being eaten up by legal fees.
3. Know What to Expect in Order to Close the Sale
One final, yet crucial step in selling your home during a divorce is reviewing the offers from potential buyers. This requires both you and your ex-partner to set aside emotions and work together for a profitable outcome. If you receive just one or two offers, the decision might be straightforward. However, in a competitive housing market with multiple offers, you may face more complex negotiations, often involving your lawyers and real estate agent.
To make the process smoother, it’s wise to agree on a selling strategy before listing the property. Decide in advance if you’re willing to accept the first offer with no contingencies or if you’d prefer to hold out for the one that maximizes profit at closing. Coming to a consensus on this approach early on will save time, reduce conflicts, and help ensure a successful sale.
4. Divide the Proceeds
You’ve reached the last stage, and hopefully, it’s the easiest! By now, whether your divorce was settled through the courts or with the help of your lawyers, you should have a clear understanding of how the proceeds from your home sale will be divided. If there are any outstanding liens or financial obligations tied to the property, the escrow company will handle paying them off before distributing the remaining funds. This ensures that everything is in order, allowing both you and your ex-partner to move forward with your lives smoothly.
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5. Sell Your House AS-IS to A Cash Buyer
If you and your ex-partner are having trouble communicating or simply don’t want to, and you’re eager to close this chapter and move forward with your life, the idea of a quick and hassle-free sale of your marital home might be the ideal solution. Divorce can be emotionally draining, and sometimes, the quickest path to relief is selling your shared property as soon as possible. In this case, selling to a direct cash home buyer or investor could offer you the fast, straightforward process you’re looking for, allowing both parties to move on with minimal stress.
When going through a difficult divorce, selling your home quickly can bring relief—and investors or direct home buyers may offer the perfect solution. These buyers pay cash for properties, regardless of the home’s condition or the seller’s financial and marital situation. They are experts in fast closings, helping homeowners sell their properties much faster than through a traditional real estate transaction. Additionally, they purchase homes as-is, which means you won’t need to invest time or money into repairs or upgrades.
For couples stuck in a costly and stressful divorce, selling to an investor can simplify the process. This approach allows both spouses to receive a fair cash offer and close the deal quickly, without the need for lengthy negotiations involving lawyers or a shared real estate agent. It’s a fast, straightforward solution that can help you move forward with minimal hassle.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
Unknown 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 5418172166. 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.