Selling Your House During Divorce?

Here's what you need to know.

Divorce is undoubtedly a challenging time, filled with emotional upheaval and significant life transitions. One of the most critical decisions during this period involves dealing with shared property—specifically, the marital home. A question that often arises is, "Can we sell the house during the divorce process?"

In this blog post, we will explore the answer to this question and provide you with the information you need to make an informed decision.

Understanding Your Options

When you're going through a divorce, there are typically three options regarding your shared property:

1. One party buys out the other: If one spouse can afford it, they may choose to buy out the other's share of the property, becoming the sole owner.

2. Sell the property and divide the proceeds: This is often the cleanest solution, especially if neither spouse can afford to buy out the other, or if co-ownership isn't feasible.

3. Continue to co-own the property: Some couples choose to continue joint ownership, particularly if they have children and want to maintain stability.

Selling the House During the Divorce Process

Yes, you can sell your home during the divorce process. However, it's crucial to understand that this can be a complex procedure, requiring mutual agreement and understanding of how the proceeds will be divided. It's also important to consider the potential impact on your financial situation and taxes.

The Right Timing for Selling

One key aspect to consider is the timing of the sale. Selling the house during or after the divorce can give buyers leverage if they learn why you are selling the home. Engaging a real estate agent who understands these dynamics can help you determine the best time to sell.

Legal Aspects of Selling Your House During Divorce

There are legal aspects to consider when selling your house during divorce. If the divorce lands in court, the sale of the house and division of the proceeds may be ordered in the consent decree. It's also important to note that most couples are forced to sell their home outright in divorce either when one spouse is not able to buy the other one's interest or when spouses cannot agree.

The Role of a Real Estate Agent

While it's possible to sell a house without an agent, it's not recommended when you're in the middle of a divorce due to the added stress. A real estate agent who has experience with divorce sales can guide you through the process, helping to mitigate the emotional and logistical challenges involved.

Sell-Leaseback Programs

Sale-leaseback programs offer another option for divorcing couples. These programs allow you to sell your home, divide the equity, and avoid having to move during the divorce process. This can provide a practical solution for couples who want to separate their finances but need time to find new living arrangements.

Preparing Your Home for Sale

Regardless of the timing, preparing your home for sale is crucial. This might involve minor repairs, a fresh coat of paint, or professional staging. An attractive, well-maintained property can fetch a higher price and sell more quickly.

Tax Implications

Selling a home can have tax implications. The IRS allows an exclusion of up to $250,000 in capital gains for individuals and $500,000 for couples if the property was the primary residence for at least two of the last five years8. It's essential to consult with a tax professional to understand potential liabilities.

Selling a house during a divorce process can be a viable option for many couples. However, it requires careful consideration, mutual agreement, and expert guidance. By understanding your options and seeking advice from professionals, you can navigate this difficult time and make decisions that support your future financial stability and emotional wellbeing.

How Can I Help You?

Melina Rissone

Having sold properties for more than 17 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers.

• Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
• Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015.
• RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
• SRES Certification through NAR is a Seniors Real Estate Specialist certification.
• Melina is bilingual in English and German.
• Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
• Coldwell Banker Presidents Elite Award.