Everything You Should Know About Selling Your House During a Divorce
Going through a divorce is hard on most people. But there are practical matters that you and your spouse must attend to. One of them is the sale of your home. The video gives a realtor insight into how to sell a house during a divorce.
The first thing you must consider is the mortgage on the property. When you go to sell it, you must deduct mortgage-related fees, liens, taxes, and brokerage fees from the sale price.
The cash you are left with must be divided between you and your soon-to-be-ex. You will then need to consider whether you made more on the sale than you are allowed to defer or write off. If this is the case, you may need to pay capital gains tax.
What If One Party Keeps the House?
The above scenario assumes that you and your spouse agree to sell the house, divide the money, and go your separate ways. If it is decided that one of you should keep the house, things can get a little trickier. If it is suggested that you keep the property, you must determine whether you can afford to do so on your own. Even if your spouse allows you to keep the property, they may want their share of the equity. If you do not intend to sell the property, you must come up with this cash in some other way, which may include selling other assets that you received from the divided estate.
This is why most divorcing couples decide to sell a house. It is simpler and easier to do so.