What’s more stressful: moving house, or getting a divorce?
Believe it or not, 45% of Americans say that moving to a new home is more stressful than a divorce. Two-thirds of these respondents even admitted that their most recent move was one of the most stressful things they’ve ever experienced.
Now imagine that you’re faced with a divorce and moving house — at the same time. For many couples, selling a house during divorce becomes their unfortunate reality.
If you’re facing this situation, what do you need to know going into it? Here are three legal rights regarding selling a house during divorce you should definitely know about.
1. Different States Have Different Laws
Selling a house during divorce is pretty straightforward, right? Just complete the sale and split the profit 50/50?
Not so fast. In some states, this might be the case, especially if you bought the home (and everything in it) after you were married. This is called “community property” and it can make the process less stressful.
However, some states distribute assets “fairly” in a divorce — which may or may not mean 50/50. If one of you earned more money, that one might get a higher percentage of the sale value than the lower earner (or a spouse who didn’t work at all).
What if one spouse owned the home before the marriage? They may be entitled to keep the property after the divorce, especially if there was a prenuptial agreement.
2. Consider the Capital Gains Tax
Taxes might be the last thing on your mind during a divorce, but there’s a big one you should consider before you sell your home during a divorce: capital gains.
Put simply, a married couple selling a home can exclude up to $500,000 in profit. These capital gains exclusions are reduced to $250,000 if you’re single.
This means there are tremendous tax benefits to selling your home while you’re still legally married. Before you make a rash decision about selling, consider the tax ramifications of when you sell your home.
3. There’s a Slow Way (And a Faster Way)
Money is almost always a concern during a divorce. “I need to sell my house fast!” you might be thinking, and that may be true. There are plenty of companies out there who will buy your home for cash and close fast, should you need to take this route.
However, it’s worth taking some time to consider all options.
This includes finding a realtor who specializes in selling homes for couples who are in the middle of a divorce. As a neutral third party, they can be the “voice of reason” that helps you understand what to expect before, during, and after the sale.
Use These Tips for Selling a House During Divorce
Selling a house during divorce is likely to be the most stressful life event you ever endure. Hopefully, the insight above will help you be better prepared to weather the storm and move on to a brighter and happier future.
Now that you know how to sell a house during a divorce, what’s next? Keep browsing our site for more interesting reads!