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Going through a divorce is tough by itself. But selling a house during divorce just adds to the stress. Even under the best conditions, there are always challenges along the way. Sometimes, couples are forced to stay together financially due to home ownership.
While you have many choices, the best option is to sell. Holding onto the home doesn’t help in moving on. Also, if both spouses are co-signers of the mortgage, it is likely both ex-spouses will still be on the loan. However, selling might not be so easy if you owe more on the mortgage than your house is worth. If this is the case, you’ll need to pay off the difference on the loan or go for a short sale.
The downside of a short sale of the family home when you divorce is that both of your credit scores are negatively impacted. In addition, you both could still be responsible for the difference the house sells for and the amount still owed on the mortgage if the bank doesn't release you from liability during the short sale. Most people also don't know that the IRS can charge the seller for taxable income on the difference between the loan balance and the sale price.
Attempting to refinance your house after a divorce is another option as long as you’re not underwater on the mortgage. This only works as long as one of you agrees to let go of the house and the other, who’s refinancing, has good credit and income. This is a better option than keeping the existing mortgage, which means that one person will be out of the house but still on the loan. If you want to keep the home, you’ll want to make sure you can afford all of the expenses on your own.
If your spouse keeps the home and the loan, don’t expect it to be smooth sailing in getting a mortgage for another home. Often, getting your name off a mortgage can be difficult if not impossible, and qualifying for a second mortgage for your new home can be tough unless you have a solid income. Meanwhile, your ex-spouse now has your old home, and if she goes into foreclosure, your credit will be wrecked because your name will still be on the loan.
Another thing to consider when selling a house during divorce is housing options in the community where you plan to live. If you decide to buy another home or rent, will your monthly payments be more or less? If you have kids, can you find similar housing in the same school district? What about the costs of moving or even renting a storage unit? You'll want to know the answers to these questions before deciding what to do.
You may be in love with the house now and want to stay, but what if during the next two years, you must sell it? You could end up with an expensive capital gains tax. You might be better off trading the house for other assets.
As if selling a house during divorce isn’t stressful enough, selling assets before a divorce can also be challenging. If not done correctly, there could be serious tax implications. Liquidating assets, though, should be a last resort due to taxes.
However, if you do liquidate assets, make sure you know what you’re dealing with when it comes to investable assets and the costs associated with it. Also, know the cost of a real estate asset and what the capital gain will be when you sell the house. Get a good business valuation and appraisal for any collectibles you may have. Don’t liquidate a 401K or fail to get fair price when you sell an asset. When selling a house during a divorce, again, you also don’t want to acquire a huge capital gain with what you sell.
Keep in mind, you don’t have to worry about taxes if you transfer assets back and forth with your spouse. Collaboration is when you and your spouse decide what something is valued at. In most cases, a judge does not get involved.
While selling a house during divorce, as hard as it maybe, don’t argue. Many real estate agents agree that couples who argue, while selling a house during a divorce, often don’t agree when it comes to routine decisions about fixing up the house, repairing, and even listing the property. This could jeopardize a potential sale and worse yet, the home could fall into foreclosure. So, set aside your differences and sell the house or agree to turn the house over to your spouse or yourself. If you do decide to sell, selling quickly to a cash buyer like 7 Day Sale will speed things up and lower the chance of disputes.
Another question to ask while selling a house during divorce is whether you live in a community property state. There are only nine of them: Arizona, Idaho, California, Louisiana, New Mexico, Nevada, Texas, Wisconsin, and Washington. In a community property state, all assets acquired by you and your spouse during marriage (except gifts/inheritences) are divided equally at the time of divorce. No other factors are taken into account. The rest of the states have equitable distribution which allows divorce courts to take factors into consideration such as length of marriage, ages, health, and the fact that one parent might have stayed home to take care of the kids.
Traditionally, many couples who divorce selling a home hire a realtor they pay a commission to after a long process of listing the property and then a long escrow while the buyer tries to qualify for credit. Some couples try to sell the house themselves, but then have the hassle of being in charge of every single detail in the whole process, from advertising & marketing to showing the home to negotiations to legal paperwork.
The Winning Move
Instead, why not sell your home to 7 Day Sale? When selling a house during a divorce, we can give you a FAST sale and CASH. All you need to do is fill out the form to get the process moving. We're in the Temecula area so we can make you a cash offer within 24 hours. In just a few days, you’ll be free of your house and able to move on with your life. You’ll have quick cash and can immediately begin prioritizing your financial goals. This is how to sell a house fast in Temecula.
In many cases, the best option is to sell your house to a house-buying company like 7 Day Sale. This gives you the best of both worlds! You won’t have to worry about any repairs, you save on commission costs and you can receive a quote in just 24 hours.
7 Day Sale gives you a cash offer within one day and you can close it whenever you want. Your house can be sold in a week!
If you need to sell your Temecula area house fast and would like to get a no-obligation cash offer, call us now at 951-541-2441. Whether you decide to sell your house to us or not, we would like to help answer questions you might have about the process.
Lucky for you, we buy houses in Temecula. We work fast to get you a no-obligation cash offer for you house within 24 hours.
Our customers comment all the time about our soft approach. You won't get a hard sell with us. If you are not completely satisfied with the offer we make to buy your house, you don't have to accept it. No charge. No fees.
We'd love to talk to you today about the house and your situation. We're here to help even if you decide not to sell your house.
Give us a call at 951-541-2441 or fill out the form below to get started. We look forward to talking with you.
Your options for selling your house during divorce in Temecula