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.