One of the most unfortunate situations you can find yourself in is selling your home while you are going through a divorce. How do you go about selling a house that you both own? Remember that everyone’s individual situation is different, so you need to understand the options available for you. Below are three of the best ways to selling a property during a divorce. Carefully read through all of them and decide which one of these three options will work best for you.
Option #1: One Buying Out the Other
In this option, one of the spouses will take full responsibility of the property. To do this, the spouse who will buy the other out will pay the other a lump sum that includes any equity built on the property over the years of the marriage. For a buy out to be possible, the spouse who will take over the home will have to apply for a refinance of the house under their name. He or she will then go through the process of mortgage pre-approval to prove that he or she can afford the house. If yes, and once the divorce is final, the other spouse will sign a quit claim deed.
Option #2: Sell the House Immediately
Out of all the options presented here, immediately selling the house is perhaps the most common result in house selling when a divorce is taking place. When a divorcing couple agrees to go through this route and once the sale has been made, the proceeds or shortages from the sale are usually split between the two parties. If the couple does not have enough equity in their property, most would most likely go for a short sale since they would mostly not want to put any more money in their house or their divorce. Again, whatever they get out of the sale will be equally split between the two of them.
Option #3: Continue to Co-Own
This might seem like a rather unorthodox option, but there are divorcing couples who choose this co-own their house because there are children involved. Selling a property with kids can be very complicated, and the parents would not want to uproot the children from the family because of a divorce. If a couple do decide to co-own the house, it is important to get their agreement in writing, outlining who exactly is responsible for paying what. Should one of the spouses decide to buy out the other, the conditions should be made clear in the agreement.
Going through a divorce can be a very stressful and daunting process. Add this to the pressure of selling their family home can leave the couple very worn out. Fortunately, it is easy to get help these days. RL Real Estate Group has been offering excellent service to numerous clients and can definitely help you make home selling more manageable, giving you more time to focus on your divorce. Contact them at 605-212-8431 or firstname.lastname@example.org now.