Divorce or separation itself is difficult enough; selling a house during a divorce is just doubling up on the trauma. However, since you’re going through this and doing what it takes to avoid a potentially bad situation, we’re here for a little comforting advice. The reality is there are thousands going through the same thing every day, and they’re handling it in stride. You’ll get through it too.
Get the Legal Framework in Place First
Before a call to an agent or an appraisal is ordered, both spouses must have a clear understanding of what the court will require. Frequently, the divorce decree or court order will outline the timing, requirements, and division of the net proceeds. If this is not yet in place, it needs to be determined before the selling process begins, trying to “wing it” when it comes to agreeing to a list price, closing date, and determining the net proceeds that will be split is not going to work.
Property classification will also dictate how the home must be sold. For example, if the home is in a community property state, both spouses may “own” the property and be equally responsible for decisions, including agreeing to sell it and the terms of the sale. If the home is brought into the marriage or was inherited by one spouse, it may not be community property. A real estate attorney can help the couple determine how title is held and what will be required to pass the title at closing. This is best worked out and documented before the home is actively on the market.
Choose the Right Sale Route For Your Situation
This is the point in the divorce process where most sellers lose time. If you list the property with a traditional real estate agent, or if one of you lists the house only to have it sit for six weeks without any offers before a contract ultimately falls through, all you’re doing is adding painful months to the process. In that kind of situation, you’re better off accepting a little less and moving on.
The great thing about an as-is cash buyer is that they cut all that nonsense off at the knees. For divorcing homeowners in the Dallas area, https://www.txcashhomebuyers.com/sell-my-house-fast-dallas-tx/ is one option worth looking at when speed and a guaranteed close matter more than squeezing out every last dollar. You get an offer within 24 to 48 hours, and close as soon as two weeks from the day you accept. Done.
It’s simple, it’s smooth, it’s not going to garner you the absolute highest price you could get for the property, but when you’re splitting that with your spouse and all you’re doing is delaying the process by looking for that last nickel, it’s usually not worth it.
Get an Objective Valuation Both Parties Can Trust
One of the quickest ways to destroy a goodwill sale is to leave the pricing up to one spouse. This gives the other one an easy out to blame the divorce for losing hundreds, thousands, or even tens of thousands of dollars. It’s easy to fix: simply get an independent appraisal, and ask your agent for a comparative market analysis. When both spouses are forced to look at the same objective data, there’s far less room to argue that he or she overstated the value, or lowballed the number.
In a market like D-FW, where inventory levels and days on market routinely shift from low to high, work with your agent to get a CMA of your current value. There’s a little more work involved, but it’s well worth the effort. An appraisal is golden if anyone ever takes the number and tries to challenge it in a court of law. Together, you have a defensible number to add to your divorce papers.
Use a Neutral Party to Manage Communication
Primary contact for every decision in the sales process should not be two people going through a divorce. A listing agent, a mediator, or a real estate attorney can serve as a buffer and relay information, flag decisions that require sign-off, and keep the transaction on track without every negotiation turning into a dispute about the marriage. If spouses can’t agree on repairs, price reductions, or which offer to accept, mediation is worth exploring. It’s faster and cheaper than going back to court, and it keeps the sale moving forward.
Close it Correctly
The final step is often the most forgotten one: closing correctly. The title company takes care of mortgage payoff, title cleanliness guarantee, and proceeds disbursement according to the divorce decree. In virtually every divorce situation, both you and your spouse will need to sign a quitclaim deed to transfer ownership officially, even if one spouse has supported the other to vacate the premises.
Make certain the settlement defines how the closing costs are divided and the net proceeds are distributed. If there are looming capital gains issues, the eligibility of exclusion can depend on whether the divorce is completed prior to the sale of the home or not, a professional tax advisor should make the call well in advance of closing.
A clean, legal transfer, and easily traced check are the best means to ensure the property doesn’t loom in the background as a possible legal or financial mess post-divorce.
Divorce is hard enough without your real estate standing in the way and making a sloppy situation worse. Clarity of law first, fair pricing, choosing the appropriate selling approach, and making sure the deal is closed properly will help turn the real estate piece of the divorce into something that is truly done.
