Divorce. When we first fall in love we can’t imagine a marriage ending in divorce, but it’s also sadly a common reality. The American Psychological Association puts the rate of divorce for citizens of the United States at approximately 40 to 50% for first marriages. But what happens to shared assets, such as real estate, when a marriage ends? Do you have to split all assets 50/50?
Can You Divorce Without Selling the House?
When facing the decision of whether to keep or sell a house during a divorce to split assets equally, there are important considerations to keep in mind. One crucial step is to inform your legal representation and the Court about the date of house acquisition. This key detail can play a significant role in determining whether the house should be sold and the proceeds divided evenly, or if the property is not categorized as a marital asset.
In cases where the Court classifies the property as “separate property” – meaning it was acquired before the marriage, received as a gift or inheritance, or purchased solely with individual funds at any point – the spouse typically does not have a claim to this property in both community property and equitable distribution states. However, there may be exceptions, such as if improvements were made that increased the property’s overall value. Consulting with a legal professional can provide clarity on whether a property is considered separate or a marital asset.
A court will look at several factors to decide who gets the house, including:
The value of the property.
The financial circumstances of each partner.
The employability of each partner.
Both physical and monetary contributions to the marital home.
The age and physical and mental health of each partner.
The amount of time each partner will have custody of the children.
Who Gets The House in A Divorce?
During a divorce, it’s State law that will govern the division of assets. These laws play a heavy role in how your marital assets are divided. Most states follow the law of equitable distribution. In these cases, during a divorce a judge will divide your property in a way that the Court considers fair. This doesn’t necessarily mean evenly or equally but can be based on a number of factors, including individual contributions to the household (such as child rearing).
There are nine states with community property laws. They are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska has community property laws as well, but only if you opt in to this method. In community property states, all assets obtained during the marriage (i.e. marital property) are divided 50/50 with only a few exceptions.
There are a few options both you and your partner and/or the Courts might choose when it comes to selling (or not selling) your marital home. These include:
One of the spouses buys out the other legal interest and keeps the home
For married homeowners who live in a community property state, you and your spouse will split all assets in half. Does this mean that you’ll need to sell your house? Not necessarily! You can negotiate with your spouse in Court to pay off their legal interest in the house so that you can keep it. To do this, you would also need to be able to be the sole person on the title in a timeframe required by the Court after the divorce decree is agreed on.
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, a parent with custody of minors may be allowed use of the house until the child reaches the age of eighteen. Depending on what the Court decides, the spouse allowed occupancy may or may not be responsible for paying the mortgage, bills, insurance, etc, and the house would be theirs until a time when all children reach the age of eighteen. Only then would the house need to be sold and the assets divided between spouses.
Co-own the home
Divorce doesn’t have to be an emotional and monetary war. The ability to co-own a property might be the best situation for the family’s welfare, whether together or separate. If you have children and want to keep them in the same house, you could both stay on the mortgage to create as little disruption as possible. An example of this would be a wife and husband who have three children. The husband works outside of the home and is the sole provider of money for the couple, but the wife is the main care provider for their children. With her status as homemaker, she may not have the funds, job history, or ability to buy out her husband’s percentage in the property.
There are some benefits of this situation, including stability for the family, but it would require trust by the departing spouse that their previous partner will be able to make their payments on time. Otherwise, both partners would take a ding on their credit record.
The house is sold immediately and any equity is split up
In some ways, selling the house can be the simplest and most straightforward solution. The house is put up on the market at an agreed upon price and, once it’s sold, the assets are split up either 50/50 or as the Court designates. Depending on the market in your area, this could be a very fast solution (or very slow). If your area’s housing market is sluggish, the house is in poor repair, or there are liens against the title, a regular home sale might not work for your situation. In those cases, selling the property directly to a direct homebuyer or investor might be a faster and easier way to get the property sold so you can move on with your life.
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 you put the house up on the market, your first step is determining who gets what either through lawyers or the Court. Many times your divorce attorney will recommend an agent, but they are not always the best option for you. Kaizen Property Solutions is well versed in the delicate nature of a divorce and we know it can be an extremely turbulent and emotional time for both partners. Let our professional experts with experience in selling real estate during a divorce guide you through this process.
2. Agree On Home Sale Specifics
When it comes to selling your house during a divorce in Nebraska, Nebraska, you and your partner must make critical decisions. Do you aim for a quick sale for a swift asset division or invest time and money into upgrades to maximize profits in today’s real estate market? Failure to reach an agreement may lead to court intervention.
If you opt for repairs and enhancements, agree on sharing expenses and discuss how this investment affects the final profit distribution. Consult a lawyer to formalize these agreements before spending any more money.
Beyond expenses and profits, consider crucial aspects such as listing management, choice of real estate agent, pricing strategy, occupancy status, mortgage and utility responsibilities, and property preparation for showings. Resolving these matters with legal guidance beforehand can save time and prevent legal fees from devouring your home sale proceeds.
3. Know What to Expect in Order to Close the Sale
When it comes to reviewing offers from potential buyers, it’s essential for you and your ex-partner to set aside any lingering emotions and collaborate effectively to maximize profit. In a competitive market like Nebraska, where multiple offers may come in, the decision-making process can involve extensive discussions with legal and real estate professionals. Establishing a clear strategy prior to listing the property is crucial. Whether you opt to accept the first contingency-free offer or aim for the highest profit margin, mutual agreement is key before proceeding with the sale. At Kaizen Property Solutions, we prioritize thorough discussions on all potential scenarios to ensure a well-informed decision-making process for our clients.
4. Divide the Proceeds
It’s the final step, and hopefully the simplest! Whether the Courts or your lawyers helped you settle your divorce, you should already understand how the proceeds of the house sale will be divided. If there are any liens or obligations on the house, the escrow company will pay them off before distributing the money so that you can move on with your life.
OR
5. Sell Your House AS-IS to A Cash Buyer
Are you facing challenges communicating with your ex-partner during a divorce? Ready to move on to the next chapter of your life without the added stress of selling your shared property? Opting to sell your house to a direct cash home buyer or investor could be the ideal solution for you!
Cash buyers and investors are prepared to purchase properties swiftly, regardless of their condition or the owners’ financial circumstances, including those in the midst of a divorce. They specialize in quick transactions, enabling property owners to divest themselves of a property much faster than with a traditional sale. Moreover, they acquire houses and properties as-is, meaning they are willing to pay cash even if the property requires upgrades or significant repairs, ensuring a prompt closing. For divorcing spouses seeking a seamless solution, this can be highly advantageous. By selling the house for a fair cash sum, they can expedite the process without the need for extensive negotiations through lawyers and a shared real estate agent.
At Kaizen Property Solutions, we have supported numerous couples in similar situations by presenting our best cash offer during the initial consultation, eliminating the need to engage with multiple investors to secure the most competitive deal for your property. In cases where the property may not align with our investment criteria, we provide honest feedback on maximizing your proceeds.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
Kaizen Property Solutions 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 402-595-8841. 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.