Real Estate During Divorce: What Happens to the House?

When you’re going through a divorce, figuring out what to do with the house is one of the biggest decisions you’ll face. Real estate during divorce can be complex. Do you sell the home and split the proceeds, or does one spouse keep it? Some couples even choose to co-own the house for a period of time.

No matter what your situation looks like, understanding your options for real estate during divorce is important. Let’s take a closer look at the choices available and what to keep in mind when making this critical decision.

Option 1: Selling the House

For many divorcing couples, selling the house is the most straightforward option. It is also the most common choice. Selling means that both parties will split the profits and move forward with their lives. It gives everyone a clean break and fresh start. It also reduces the potential for any disputes over the property in the future.  

Navigating real estate during divorce may feel stressful, so choosing a realtor familiar with real estate during divorce is crucial to making the sale go as smoothly as possible.

A real estate agent who has experience working with divorcing couples knows how important communication is during the home sale. They are also skilled at setting fair prices, juggling offers, and negotiating in ways that will benefit both partners. They are there to make sure the sale goes smoothly and quickly. That way, both people can move forward as soon as possible.

Option 2: One Spouse Keeps the House

Another common divorce option is for one spouse to keep the house. In this case, the spouse who wants to stay buys out the other’s share. This often requires refinancing the mortgage under one name. To be honest, this is where real estate during divorce can get tricky. Financial factors like income, credit, and whether the remaining spouse can comfortably afford the house on their own need to be considered.

Emotionally, staying in the home may feel comforting, especially if there are kids involved. But, any divorce can mean a change in the financial situation of both parties. It’s crucial to figure out your new financial realities before making any decisions.

Divorces Can Cost Money

When thinking about finances, you first have to factor in the cost to get a divorce. Uncontested divorces can cost $3500 at minimum, and any disputes raise the price significantly. Not to mention, the cost of going to trial on just one issue can cost $12,000 or more. It’s safe to say that with how costly divorce is in general, you’ll really want to consider each party’s financial situation post-divorce.

Don’t Forget About Additional Fees

Beyond the divorce fees, other financial obligations can come into play, depending on the settlement. For example, even if one spouse is the primary breadwinner and can afford the mortgage payments solo, they might still be required to pay spousal support (also known as alimony) or child support payments, depending on the agreement or court ruling.

These obligations can add up quickly, impacting that person’s overall financial situation. You must consider additional fees to determine what you can actually afford once the divorce dust settles.

Option 3: Co-Ownership (Short-Term Solution)

For some couples, co-owning the house for a time might be the best temporary solution. This solution is most considered when children are involved, to give them the opportunity to stay in a familiar home while other aspects of their lives are changing.

While this option can work, it typically only works in divorces that are quite civil in nature. It requires the exes to be amicable, with two adults who have strong communication and clear agreements about the duration of the co-ownership and how costs will be divided up. It also requires both parties to pay their portion of the mortgage payment on time, or it risks hurting the other spouse’s credit. Trust is huge here.

Real estate during divorce, particularly when co-ownership is involved, requires careful planning. I repeat that both parties must be on the same page, especially when it comes to expenses, upkeep, and future plans for the property.

Consult a Lawyer About Real Estate During Divorce

While a realtor plays an important role in navigating real estate during divorce, you’ll need to consult with a lawyer to truly and fully understand your legal rights and obligations. Divorce involves legal complexities that a realtor simply cannot advise on. A lawyer, however, helps you determine what you’re entitled to, explains how support payments might affect your finances, and guides you through property division.

How a Realtor Can Help (& What to Look For)

Once you’ve worked out the legal aspects with your lawyer, a skilled realtor can step in to help execute your decision, whether that means selling the home, facilitating a buyout, or navigating co-ownership.

Choosing the Right Realtor is Critical

You’ll want someone who understands not only the market but also the unique emotional and logistical challenges that come with divorce. Here are a few key traits to look for in a realtor:

  • Experience in Divorce-Related Transactions: A realtor who has helped other divorcing couples will know how to handle the extra layers of complexity, from managing communications between both parties to navigating the emotional aspects of the sale or buyout.
  • Strong Negotiation Skills: Divorce often comes with heightened emotions, and a good realtor will be able to handle negotiations diplomatically and professionally. They’ll work to find solutions that feel fair to both parties while still focusing on securing the best deal possible.
  • Neutrality and Objectivity: You’ll need a realtor who can remain neutral and not take sides. This is especially important when both spouses are involved in the decision-making process, whether it’s selling the home or discussing co-ownership.
  • Empathy and Discretion: Divorce is deeply personal, and a good realtor should approach the situation with empathy, understanding that it’s more than just a business transaction. They should be sensitive to the situation and maintain discretion at all times.

By choosing a realtor with these qualities, you’ll have a trusted partner who can make the real estate process easier, no matter which option you choose.

Lauren Fours Can Help You With Real Estate During Divorce

Navigating real estate during divorce can feel overwhelming, but you don’t have to go through it alone. With years of experience in divorce-related real estate transactions, Lauren Fours is here to guide you through every step of the process you’ve decided upon. Whether you’re looking to sell, keep the home, or explore co-ownership, Lauren offers the knowledge, negotiation skills, and empathy needed to get both spouses through the real estate logistics.

Lauren is a neutral party and is skilled at working with both spouses. She ensures a smooth transaction that feels fair to everyone. With a focus on discretion and professionalism, she can handle all things real estate so that you both can take that next step in your life. Contact her for more information.

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