Divorce is a life-altering event and involves a lot of emotions and decisions. But if you and your partner can’t save your marriage, the best option is to get a divorce to allow each party to move on with their lives separately. But what happens to your home and other assets? You can split the assets, but you should make a big decision regarding what happens to your home.
What Happens to Your House During a Divorce?
If one party had bought the house before marriage, they are considered the sole owner of the property and should keep the house or make any decision on what to do with it. If there are children involved, the owner can allow the wife to keep the house to provide shelter for them. If there are no children involved, they can keep the home or sell it.
If it is a marital property (you both bought the home during the time you were married), you have several options;
Option: Buy Out the Other Party
In a buyout situation, the party that wants to keep the home pays the other half of its current market value. However, in some situations, the buyout may be more or less half of the market value depending on how much they contributed to purchase the house, their income, and other factors.
Option: Sell the marital home
One of the most common options, this is when a couple decides to put the home on the market and split the proceeds. Why go this route: Selling a home offers a clean break and closure for the divorcing couple. It also can provide each party with cash to cover divorce attorney fees, settle debts, and find (and afford) new living situations. (1)
If you are parting ways with your spouse, the best option is to sell my house fast Louisville and share the proceeds. What is the right time to sell the house?
Choosing the Right Time to Sell Your House During Divorce
You can sell my house fast in New Albany IN before, during, or after divorce. If you are the sole owner of the house, you can sell it before the divorce proceedings. If you bought the house during the time you have been married, it is better to sell it for cash after a divorce agreement is in place but before the divorce is completed.
Why Sell Your Home Before Finalizing the Divorce?
There are many benefits of selling a house before divorce is finalized to one of the best cash home buyers in Louisville. Here are some of the benefits;
Minimize or Avoid Capital Gains Tax
If you sell my house fast New Albany Indiana just before the divorce is finalized, you are likely to get a capital gains tax advantage, especially if you have significant equity in your home. Please note that capital gains tax is calculated based on the profit one gets from the sale. Married couples pay these taxes if they get a profit exceeding $500,000 while singles pay it if the profit gets over $250,000.
Typically, married couples pay much less capital gains tax compared to singles. So, if you wait until the divorce is finalized, you will be slapped with a higher capital gains tax bill. But when you sell it while still married but awaiting the divorce to be finalized, you will minimize or even avoid capital gains tax.
Minimize the Chances of Disagreements
If you have agreed on the divorce terms with your spouse, and there is an agreement in place, expect a smoother and less stressful selling process. An agreement helps minimize the chances of disagreements that can delay the sale and even the divorce process.
If you sell without an agreement in place, one party can decide to derail the process and that can lead to a lot of disagreements. So have an agreement in place, and sell the house just before the divorce is finalized to avoid disagreements.
Get Money to Find a New Place Early Enough
You and your spouse have agreed to go separate ways, but you need money to start fresh. The divorce process can take time to be finalized. But you don’t have to wait for it to be finalized to move on with your life. You can sell the house before the divorce if finalized and split the proceeds to get money to find a new place and start your new life.
Simplify the Emotional Process
If you wait until the divorce is finalized to sell your house to a we buy houses Louisville KY, expect a complicated process due to emotions. At that time, no one would be able to make sound decisions due to emotions. Selling after divorce will also open emotional wounds as you must meet/talk to agree on how you are going to sell the home. But when you sell it just before the divorce is finalized there will be fewer complications, ensuring a seamless emotional process.
Why Sell Your House for Cash Just Before Finalizing the Divorce?
Here are a few reasons to make you sell my house fast Louisville for cash just before finalizing the divorce;
Quick closure – Divorce is a complicated and emotional process, and you want it to be concluded as quickly as possible. The good news is that you can sell your house for cash and close the deal within a few days while waiting for the divorce to be finalized.
Sell the house as-is – When you decide to sell your house for cash to a we buy houses New Albany Indiana company, you don’t have to deep clean, repair, or upgrade it. The cash buyer will buy the house as is, saving you the stress and cost of fixing damages and improving the house.
Privacy – If you don’t want people to know that you are selling your home, you can secretly sell it to a cash buyer. You won’t have to list or market the home. You won’t also open the house for showings. You meet with the cash buyer, negotiate a deal, and close the deal in as little as 14 days.