Categories divorce

Challenges with Selling Your Home During a Divorce


Separating from your spouse can not only induce emotional stress, but financial stress as well. If you own a home with your partner you will need to confront the issue of what to do with your property. There are two primary options to consider. Either, one spouse stays in the home, or you sell the home.

In general, the second option is best suited to assist in a smooth separation. Selling the home allows for assets to be divided equally and ties to be cut in the relationship. However, selling your home during a divorce may present some unexpected challenges.

Understand the Law

No matter the relationship you had with your significant other at the time of the decision to divorce, it is imperative that you understand your rights related to selling your home during a divorce. Often times, individuals believe that they do not need to fully understand this aspect because they have faith in their spouse that everything will close fairly. Unfortunately, you can never predict what the future will hold, so understanding your legal rights is sure to help in any unforeseen situation.

First, recognize that Texas is a “community property” state. That is, anything owned between the couple has dual ownership. Even if the home was purchased prior to the marriage, if any funds were used from joint accounts to make payments or repairs on the house, the home was transferred to community property. This means that the sale of the home must be approved by both spouses, and both signatures will be required on the paperwork. Additionally, this equates to equal shares in the profit from the sale of the home.

Secondly, if you do sell during a divorce, do not expect to receive the funds immediately. In the state of Texas, once a home has sold the funds will be help in your attorney’s client trust and divided once the decision of the court is finalized.

Agree on the Logistics

If both parties feel that selling the home is the best option for their futures, consider the following three aspects to selling before listing the home. These three decisions are the most difficult for couples to agree on and can extend the sale of the home drastically. It can even cause a change in broker if the relationship is hostile. Therefore, answering these three questions can both reduce time spent selling the house and reduce arguments between you and your significant other.

  1. Identify a Listing Agent. This is step one. Identify a listing agent that you are both comfortable with. Ask what the agents fees are and what their marketing plan consists of. Unexpected events during the marketing process can cause tension between a couple.
  2. Preparing the House to Sell. How much is each party willing to pay for repairs and staging. Both of these investments can help increase the value of the home once it is listed on the market. However, many times there is one party who is not prepared to invest either time or money in the property. Maybe they did not want to sell, or they are holding a grudge against their spouse. Whatever the situation, confirming the dollars permitted to invest and identifying what role each spouse plays in preparing the home for sale should be completed before listing the home.
  3. Settle on Selling Price and Terms. This is the stage in which most homes fall out of contract. Spouses often change their mind during the process, or were unaware of the actual value of the home pre-marketing. Coming to an agreement on all terms of the sale will be essential for a quick close. A couple questions to ponder include: What is the lowest selling price I will agree on? Will I accept an offer with a loan contingency? What closing costs am I willing to cover? Again, it primarily comes down to the finances. Having an in-depth understanding of closing costs and expectations during escrow can relieve headaches in the final steps of the sale.

Finding the Right Professional

Listing on the market can pose an array of problems in itself. It can extend the process of selling the home and can create resentment between splitting partners. An alternative option to consider when selling your home during a divorce is to sell to an all cash buyer.

As an all cash buyer, we have purchased multiple homes from families going through this strenuous time. We do not want to add to this stress, nor do we want to waste any parties time. Therefore, we can provide our clients with an upfront offer on how much we will purchase the home for. We can close quickly, allowing for this chapter of the divorce to be closed. Additionally, with years of experience, we understand the legal process. We have an attorney on staff that can help with the process.

Get started with the next phase of your life today. Contact us for a simple solution.

Categories divorce

Ugly Divorce? Sell Your Home With A Quick Close, Today!

It is unfortunate, but in today’s society, over 50% of Americans’ marriages end in divorce. With divorce, comes the splitting of assets. In this article, we will look at the process of selling your home in a divorce and how to save time and money in the process.

It is important to note that in the state of Texas, all assets in a marriage are considered “community property,” with few exceptions. If you owned the property prior to the marriage, or if you inherited or were provided a property as a gift during your marriage, the asset is considered separate property. However, if any funds were used from a shared bank account to make improvements on the home, then the home becomes community property. Any community property is essentially shared equally between you and your spouse. All in all, it can be challenging to prove that an asset is separate property.

Knowing that, we can assume that the home you are trying to sell in your divorce is actually the property of both you and your spouse. Now – let’s get started with your options on how to handle a home while getting a divorce.

Option #1: Sell the House During the Divorce

This option is best suited for those couples who are facing financial restraints and need the income from the house. If the divorce is ugly, this is also a good way to cut ties more quickly, providing spouses relief from the other; in this scenario, each person gains the opportunity for a fresh start.

On the other hand, selling a house during a divorce may not always be the best option. If it is not a seller’s market, the couple may lose money on the home. They will also need to agree on the selling price and pay the fees for an agent and attorney. Selling the home also removes the security from the children – they must start anew somewhere while dealing with their parents’ divorce. Also, if the couple opts to sell the home during the divorce, they must hope for a good market. The divorce will not be finalized until the home closes and profit is split accordingly.

Option #2: One Spouse Buys Out The Other Spouse

If one spouse can afford to buy the other spouse out, this may be a viable option. Sometimes, a parent will stay in the home to provide comfort for their children during the divorce. The pros that accompany this option are plentiful; however, most couples are not in a financial position to do this. Additionally, if the divorce is hostile, the agreed-upon price may be challenging to find.

Option #3: Postpone Sale until After The Divorce

If both parties are in a financially secure position, they could opt out of selling the home immediately and agree to sell it after the divorce is finalized. Both parties would have to agree, and, in the final decree of divorce, they would have to state the terms of selling the home, including time frame and price. This can speed up a process and provide an agent time to adequately market the home.

The downside: In a contentious situation, this option extends the relationship by requiring continued communication. Although documents may be signed, one spouse could change their mind and can bring the other spouse to court, creating more required legal action and additional fees to be paid. This can be harmful – not only to one spouse, but also to the children.

HIDDEN Option #4: Sell The Home to an All Cash Buyer

If the divorce is ugly and hostile, you may want to sell the home as quickly as possible. It may be better to cut ties now than to drag out a toxic relationship. To sell quickly and smoothly, it may be best to sell your home to an all cash investor who is educated in the industry.

We here at Gulf State Homebuyers purchase homes during divorces, helping our clients transition more quickly. As a company, we help our clients save time and money, allowing for them to move on and settle into that new life they are hoping for. Our services include:

  • We cover closing costs – we buy the home “as-is,” and we don’t ask for additional financial coverage. Also, there is no agent to pay on these transactions.
  • We have an attorney on staff that completes paperwork – we cover these attorney fees.
  • We close quickly – with our all cash offer, we can close in as quickly as five days, separating the hostile relationship sooner rather than later.

For more information, contact us today!

Categories divorce

Selling Your Home After A Divorce

Steps to Selling YOUR Home After A Divorce…in Texas

Generally speaking, divorce is not a pleasant event in anyone’s life. Regardless of whether it is amicable or contentious, it is never easy. To make things more challenging, beyond the emotional havoc brought on by separation, there is the splitting of assets to be dealt with.

Couples who have divorced and own a home together have to decide what the future of the property is…will they sell it, or will they keep it?

Couples that choose to keep the home generally do so to assist their children with the transition. When one spouse maintains the home however, it can be challenging for the assets to be split equally. An alternative is for the court to place a lien on the property, which allows for the spouse who is moving out to receive compensation when the house is sold or refinanced. However, the challenges associated with this process often necessitate selling the home anyway.

In this article, we will look at the various aspects to consider when selling your home after a divorce.

Consider Legal Matters

Texas is a Community Property State, which means that all property and assets acquired during a marriage are assumed by both spouses or are community property. Therefore, there are two options when proceeding with selling community property in a divorce: transfer the title of the property to one spouse or sell the property together and split the proceeds.

Pros of Transferring The Property to One Spouse

● Separate ties – selling a home can be a long, tedious process and will keep you intertwined with your ex for longer than many wish to stay connected. Assigning one spouse the responsibility allows for discontinued communication pertaining to the property.

Cons of Transferring The Property to One Spouse

● It requires some front-end efforts if there is a mortgage on the house – typically the process to transition the title into one name includes one spouse taking ownership of and refinancing the property. This removes the other spouse from the debt.

● If the property cannot be refinanced, you have wasted a good deal of time. Why would one be unable to refinance the property? Because it can be challenging for a single spouse to qualify.

Pros of Selling Together and Splitting the Proceeds

● Neither party will feel that they were not financially provided for – all proceeds will be split evenly in the end.

● Both parties will have a say in the final selling price – emotional connections to the house can create a need to sell at market value.

Cons of Selling Together and Splitting the Proceeds

● Additional tension: If the parties disagree on the selling price, the home could sit on the market.

● Loss of buyers: Some buyers do not want to buy from individuals selling due to a divorce. There are too many risk factors associated, including one party changing their mind or even the couple rekindling their relationship.

Additional Potential Challenge – The Market

Unfortunately, one can never predict how the real estate market is going to look when they are going through a divorce. Realistically, nothing can be predicted. With the fluctuations in the market, you may be in a position where the house has a lower value than you believed. To identify the potential of your home during your divorce, take one extra step and have your property assessed by a real estate agent or broker. This consultation is typically free with the right person.

An Easy Solution

For a quick and easy sell, couples have the alternative option to sell the house in an all-cash deal to an identified investor. This provides a solution to the issues related to selling a house through a real estate agent.

If the divorce is hostile, an all-cash offer can help create a quick separation. Once the couple has identified a final agreeable selling price, they can scout for the appropriate agencies that can provide them with their requests. The additional benefit to this process is that the house will sell quickly and quietly, creating no need for added tension.

Additionally, selling the house for upfront cash can allow for the house to be sold as-is – no need for modifications or staging. Anyone experiencing the emotional turmoil of a divorce does not want the hassle of revamping a home. It is well known that your home’s first impression can make or break the sale, so having a house that is not well put together can extend the selling process. An all-cash offer from the right investor can help avoid these issues.

At the end of the day, always consult with your divorce attorney before making any decision. Due to the emotional aspect of a divorce, some individuals make rash decisions in spite of their spouse. Be sure that whatever you chose to do, you are making the best decision to support your future.