Divorce. When we first fall in love, the possibility of a marriage ending seems unimaginable, yet it’s unfortunately a common reality. The American Psychological Association estimates that 40 to 50% of first marriages in the United States end in divorce. But what happens to shared assets like real estate when couples separate? Is a 50/50 split always required for property division?
Can You Divorce Without Selling the House?
You have several options when deciding whether to keep a house during divorce or sell it for an equitable split. The crucial first step is informing your attorneys and the Court when you acquired the property. This key information helps determine if the house must be sold with assets divided fairly, or if it might not be considered marital property at all.
If the Court determines the property is “separate property” – purchased before marriage, gifted or inherited individually, or bought with separate assets at any time – then in both community and equitable distribution states, your spouse typically has no rights to this property. Exceptions may apply, such as when improvements significantly increased the property’s value. An attorney can help clarify whether your property qualifies as separate or marital.
A court will look at several factors to decide who gets the house, including:
The current market value of the property.
Each partner’s financial situation and stability.
The employment prospects and earning capacity of each spouse.
Contributions to the marital home, both physical maintenance and financial investment.
The age and overall physical and mental wellbeing of each spouse.
Custody arrangements and which parent will spend more time with the children.
Who Gets The House in A Divorce?
During divorce proceedings, state laws govern asset division and significantly impact how your marital property is distributed. Most states, including Iowa and Illinois, follow equitable distribution principles. Under this approach, a judge divides your property in a manner deemed fair, which doesn’t necessarily mean equal. The division can factor in various considerations, including individual contributions to the household (such as child-rearing responsibilities).
Nine states operate under community property laws: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska also offers community property as an opt-in choice. In these states, all assets acquired during marriage (marital property) are typically divided 50/50, with limited exceptions.
You, your partner, and/or the Courts have several options when deciding what happens to your marital home. These include:
One of the spouses buys out the other legal interest and keeps the home
For married homeowners in community property states, assets are typically split equally. However, this doesn’t automatically mean selling your house. You can negotiate to pay off your spouse’s legal interest to maintain ownership. To accomplish this, you’ll need to become the sole person on the title within the timeframe specified by the Court after the divorce decree is finalized.
One spouse keeps use and occupancy of the home for a specified period; typically when the youngest child turns eighteen, then the house can be sold.
Many states allow the custodial parent to remain in the family home until the youngest child reaches eighteen. The Court determines whether this spouse must handle mortgage payments, utilities, insurance, and other expenses during this period. Once all children reach adulthood, the house would then be sold and proceeds divided between both former spouses.
Co-own the home
Divorce doesn’t have to become an emotional and financial battleground. Co-owning property might best serve your family’s welfare. For families with children, maintaining both names on the mortgage can minimize disruption. Consider a situation where a husband works outside the home as the sole financial provider while his wife serves as the primary caregiver for their three children. As a homemaker, she may lack the funds, employment history, or ability to buy out her husband’s share of the property.
This arrangement offers benefits like family stability but requires trust that the remaining spouse will make timely payments. Otherwise, both parties risk damage to their credit scores.
The house is sold immediately and any equity is split up
Selling the house often represents the cleanest, most straightforward solution. The property is listed at an agreed-upon price and, after the sale, the proceeds are divided either 50/50 or as directed by the Court. Depending on your local market conditions, this could be a quick process or a lengthy one. If your area has a slow housing market, the property needs significant repairs, or there are liens against the title, a traditional sale might not be ideal. In these situations, selling directly to a cash home buyer or investor could provide a faster, more convenient path to resolving the property matter and moving forward with your life.
Selling Your House During A Divorce?
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Steps to Sell a Home During Divorce
1. Hire A Divorce Specialist Real Estate Agent
Before listing your property, you must first establish who gets what through legal channels or court decisions. Divorce often creates emotional turbulence for both partners. Allow professional experts with specific experience in divorce-related real estate transactions to guide you through this challenging process.
2. Agree On Home Sale Specifics
You and your spouse must decide on your selling approach. Would you prefer a quick sale to divide assets and move forward, or would you rather invest time preparing the property to maximize its market value? If you can’t reach an agreement through your attorneys, court intervention may become necessary.
If you choose to invest in necessary repairs and upgrades, you’ll need to establish how to divide these expenses and how such investments might affect the final profit split. Before spending additional money, finalize these agreements with legal documentation to protect your interests at closing.
Financial considerations are just the beginning. You’ll need to address how the property will be managed during the listing period. Whose real estate agent will you use? What listing price is appropriate? Will the house remain occupied or vacant until sold? Who bears responsibility for mortgage payments and utilities? Who will prepare the property for showings and open houses? When possible, allow your attorneys to negotiate these details before court involvement, potentially saving time and preserving more of your sale proceeds.
3. Know What to Expect in Order to Close the Sale
One final stage requires cooperation between you and your ex-partner: reviewing purchase offers. With just one or two offers, decision-making might be straightforward. However, in hot markets with multiple competing offers, extensive negotiations may occur through your attorneys and real estate agent. To streamline this process, agree on a strategy before listing. Whether you decide to accept the first clean offer or wait for the highest possible price, reaching a mutual decision is essential before proceeding with the sale.
4. Divide the Proceeds
This final step should be the most straightforward. Whether determined by the Courts or negotiated through your attorneys, you should already understand how the sale proceeds will be distributed. If liens or other obligations exist against the property, the escrow company will satisfy these before distributing funds, allowing you both to move forward.
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5. Sell Your House AS-IS to A Cash Buyer
Are you in a situation where communication with your ex-partner is difficult or impossible? Are you eager to close this chapter and begin the next phase of your life? Is divorce-related stress overwhelming you, making a fast, uncomplicated property sale the best option? Selling to a direct cash home buyer might be your ideal solution!
Investors and direct home buyers offer cash for properties regardless of condition or the owners’ financial and marital circumstances. They specialize in rapid closings, helping property owners move on more quickly than traditional sales allow. They purchase houses as-is, meaning they’ll pay cash even if the property needs major repairs or updates. For couples navigating a painful and expensive divorce, this approach offers significant advantages. You can sell for a fair cash amount, close quickly, and avoid the complexities of negotiating through attorneys and real estate agents.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
QC RES LLC is a trusted local home buying company that specializes in purchasing properties for cash, regardless of condition or the homeowners’ financial situation. We offer competitive cash deals without the complications of real estate agents, lawyers, and lengthy processes. If a direct home sale sounds right for your circumstances, let’s talk! Call us anytime at (563) 265-1846. We’ve built our reputation on buying houses with minimal stress and reduced fees.
If you own a property that needs to be sold quickly due to divorce, we have a compassionate solution. Contact us today for a fair cash offer on your house or rental property. We purchase homes regardless of your financial circumstances or the property’s condition. Even if the house has been neglected for years or sustained recent storm damage, our team of experts will handle all necessary repairs and improvements once you accept our offer. We strive to make selling a house during divorce as stress-free and straightforward as possible.