Getting divorced is never easy, and it’s even harder when there’s real estate involved. You might have a lot of questions about the process, so here are some of the most common ones to help make your journey a little bit smoother.
Who will keep the house?
This depends on how much equity each spouse has in the home, along with other financial considerations like income and credit scores. In most cases, one spouse will buy out the other by assuming full ownership of the property or refinancing the mortgage in their own name. However, if neither party can afford to take over the mortgage payments, then selling is usually the best option.
What happens if we sold our house before getting divorced?
The money from your sale should be divided between both spouses according to their marital agreement or whatever court order was issued during your divorce proceedings. If you sold for a profit, then that profit should also be evenly divided between you and your ex-spouse. It’s important to note that sometimes this money can be subject to taxes depending on your situation—so it’s always wise to consult with an accountant just to be sure!
What About Mortgages and Loan Payments?
If one spouse takes over ownership of a home during a divorce but there are still outstanding mortgage payments or loans associated with that property, those payments still need to be paid until all debt is settled in full. If both spouses agree that only one will take responsibility for these payments, then it should be documented in writing in order for both parties—and creditors—to understand who is responsible for making them. Furthermore, if these debts are not paid off within 30 days of when they were supposed to be paid according to court orders or other written agreements, this could lead not only creditors coming after either party but also potential legal repercussions such as contempt proceedings against either spouse who failed in their obligation(s). he home originally as well as any appreciation/depreciation that has occurred since then!
Do I Really Need to Sell the House?
It depends. If joint ownership between you and your ex-spouse does not make sense, and neither spouse wants to keep the house or can afford the mortgage alone, then selling is the logical choice. Proceeds from the real estate sale can be divided between divorcing spouses without the need to wait for the divorce to be finalized.
Should I Consider Buying Out My Spouse’s Interest in our Real Estate?
If you are the custodial parent for children, and you want the children to continue living in the same home, consider buying your former spouse’s interest. This is also a good option if you do not want to sell the house for any reason. Awarding the home to one spouse can be factored into a split of the remainder of the community property estate.
Real estate can be complicated during divorce proceedings–especially if you’re unsure about what questions you should ask and what answers you should expect in return! Hopefully these Q and As have helped clear up some confusion (or at least made things a bit easier) as you go through this difficult time in your life. As always though, it’s important to consult with an experienced real estate attorney who can provide more tailored advice for your particular situation—so don’t hesitate to reach out and get professional guidance if needed!