Divorce Advice – Sell My Home – Preparing for Divorce
Seller’s Articles – For the smart consumer
How Divorce Affects Your Home Sale
During a divorce, the couple’s marital home is one of the most pressing issues that needs to be addressed. If the couple purchased the home with the intention of living there together, the end result is usually selling the home, unless one partner is willing to buy the other partner’s share. Because divorce is an emotionally tenuous time, selling the family home is a challenging undertaking. The decision to sell a home and the details of the sale itself need to remain completely unemotional. While this is often a difficult proposition in the middle of divorce proceedings, a home sale will be more successful and less stressful if you are able to remain emotionally uninvolved in the sale process.
Much like the situation you may have faced if both partners sold another home to buy the current home, a lot of coordination and negotiation are needed to ensure that everyone’s best interests are considered.
The best way to ensure that the home will sell within the necessary timeframe is to put the home on the market as soon as possible. Draw up an agreement between both partners to adhere to a timeline for the sale and to agree on the closing date once the home is under contract. Financial penalties may help to avoid slow-downs in the sales process and protect the interests of everyone involved.
Generally, a home that is being sold as the result of a divorce will be sold in the same way that any other home is sold. However, you must be careful to hide any evidence of the impending divorce from potential buyers. This means taking the same approach to selling the home that other sellers would take.
Divorce will really affect the sale of your home in the aftermath of the sale.
Whenever you sell a home, you face taxes on the resulting profit. In most cases, there is a profit allowance that is tax-exempt, usually about $250,000. Keep in mind, however, that to be eligible for that allowance you must have lived in your home for at least two full years. Couples who divorce before reaching the two-year mark may opt to keep the home until those two years have passed, or take a partial allowance that corresponds to the length of time that the home was owned.
The partial allowance is known officially as a partial exclusion and is available to taxpayers who meet the criteria established by the federal taxing authorities. In general, this exclusion is only offered to those who need to move as a result of a career change or a serious health problem, but there is also a clause for “unforeseen circumstances”. Divorce is generally accepted to be an unforeseen circumstance.