Divorces can be messy, time-consuming, and emotionally exhausting. They can become even more challenging when property is involved. There are times when a divorce forces the sale of a home. The marital residence is often a couple’s biggest asset, and selling a home can become a major issue in a divorce. Even separations that seem to be amicable in the beginning can turn out to be nasty feuds when it comes to deciding what to do with the property.
Division of property
Regardless of the circumstances regarding a relationship’s demise, divorcing couples need to decide if they are going to sell and how the equity will be divided. Many spouses who are going through divorce used to divide the equity in a property, but the problem is many now owe more than their home is worth. This can lead to a short sale, in which the lender forgives part of the mortgage and allows the homeowner to sell the house for less than is owed.
One particularly complicated issue is when there has been a divorce and the ex’s name is still on the title. When the house sells, the ex does whatever is necessary to impede the completion of the sale. This is when an attorney is extremely helpful in clearing the title.
The couple must decide whether to sell or buy out the other’s share. If they decide to sell the house, they must agree on how to price the property, put it on the market, and handle offers. These situations can make even the most amicable separation become bitter and complicated.
Deciding to remain living in the home
Some divorcing couples postpone selling their home because they think that they can’t afford to live separately now. They make agree to live in the same home until the home’s value has raised ad they can afford to sell. If you reach an agreement that one of you will remain an owner of the house, then you should remove the existing loan and replace it with a new loan.
Keeping emotions under control is essential in a successful home sale during a divorce. No matter why you separated and who did what, it’s important to remember that no one benefits from heated emotions during the sale of a house.
If you are going through a divorce and selling your home, you definitely need to know the true value of your property. In order to ask for a competitive price, get the value of your home for free with a Neighborhood IQ home value report today!