Real Estate Information Archive

Blog

Displaying blog entries 1-2 of 2

What You Need to Know About Selling a Home When Divorcing

by The Hat Team


Moving is one of the top five most stressful life events. Divorce ranks in the top five as well.   Put those two together and you have a meltdown in the making.  If you and your spouse own a home together and you are divorcing, you are going to have to figure out what you’re going to do about the house.  This can be challenging under the most amicable of situations and can be devastating when there is bitterness and fighting.

Since your home is likely the greatest asset that you share, selling it is often necessary when parting ways.  Sentimental value may entice one or the other of you to want to keep the home, but financial implications may keep you from doing so.  Understanding how divorce affects the sale of a home is crucial.  The emotional aspect of splitting up your family can sometimes impair your judgement but making a poor decision regarding your home can have lasting ramifications, long after the divorce is finalized. 

Whether one spouse wants to buy out the other and keep the home or both want to sell and split the equity, selling a house while getting divorced is a rocky road that needs to be navigated intelligently.  When two people are willing to deal with each other in a peaceful, respectful way, it certainly makes the whole process easier. But often this is not the case in these situations.  Division of a home is not simple. 

When each spouse contributed to purchase the home - even if one paid more than the other - you are both going to want your fair share out of it.  Ideally, you will be able to work with an attorney or mediator to come to an agreement out of court, but if you can’t, a judge will decide for you.  This can be a very unpleasant experience for all parties involved.  If both your incomes were factored in the purchase of the house, chances are when you split that in half, neither of you can afford it on your own. If that is the case, the best solution is to sell the home and divide the assets.  There are also tax implications that should be considered when you are trying to decide if you should sell before you divorce or after. Capital Gains Tax and Divorce: How to Preserve Your Biggest Home Sale Tax Break

Should one of you decide to stay in the home, there are a couple of different ways to make that happen.  First, if you have the financial means to do so, you can take over the mortgage by refinancing.  This means you must qualify for the loan and be able to make the monthly payments on your own.  Your ex-spouse will be completely out of the picture.  Another way is to continue co-owning the property.  Perhaps you have children and want to keep them in their home. While this is the least disruptive option, it is precarious and requires a lot of trust.  It would have to be a very civil and friendly divorce for this to work because both parties will be responsible for the mortgage and upkeep of the house.  The bottom line is that if you plan to stay in the home, you better be sure you can afford it.  It would be prudent to work out a budget before you make the decision. 5 Simple Steps to Create a Successful Budget

With all the financial and emotional issues that get wrapped up in the sale of a home during divorce, it’s crucial that you know what you want prior to meeting with your Realtor. It is best for you to meet with your attorneys for them to guide you through the process of deciding how to split the equity. Once you have that done, seek out an experienced Realtor like Sandra Nickel, who will gently guide you through the process with as little stress as possible.

Photo Credit: quickhomeoffers.com

How Divorce Impacts Your Montgomery AL Real Estate

by The Hat Team

If you are considering a divorce or are going though one, it is important that you learn as much as you can about divorce laws in your state and how they impact your Montgomery AL real estate holdings.  Yes, you probably have enough to deal with already, but knowing as much as you can about relevant divorce laws will certainly make your life easier in the long run. 

divorceAlthough a divorce eventually involves the distribution of all of a couple’s assets—and action dictated by either an equitable distribution system or community property regulation—generally the most pressing issue (other than child custody)—is the resolution of dividing your Montgomery AL real estate.

Since the selling of a home is stressful by itself, let alone when accompanied by a divorce, the cooperation of both parties is vital to make a complicated and emotion-laden process work as smoothly and civilly as possible. The following suggestions to help combat volatile issues and strong feelings:

1.  Consult with your divorce attorney.  A well-crafted settlement agreement can help to avoid many types of disputes. The agreement should be quite detailed, including all potential issues that could arise during the sales process.  The greater the detail, the better.  The agreement should ensure that the interests of both parties are aligned towards selling your Montgomery AL real estate so that you both can move on with your lives.

2.  Find a real estate agent who specializes in selling property for divorcing couples.  With divorce rates continuing to rise, many Realtors are beginning to market themselves as specialists in selling  homes for couples who are divorcing.  These agents understand the complexities of a pending divorce case and will work with you on an individual basis. 

Before you can  decide how your Montgomery AL real estate is to be divided, you must first determine its value.  There are three methods which you can use to do this:

 Tax assessed value.  Although tax valuations tend to be low by as much as 10-20%, this value is likely to be the one used by the courts in case of dispute.

Appraiser.  For a fee of $300-$400 this person will perform a market valuation.

Realtor.  A real estate agent estimate the  can also value your property, generally for little or no cost.  His/her valuation may be less reliable than that of a professional appraiser, however.

Determining equity  in order to equitably divide assets is a complex process which can become quite complicated. 

Search all Montgomery AL Real Estate And Homes For Sale.

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com

You can reach Sandra by filling out the online contact form below or give her a call anytime.

Displaying blog entries 1-2 of 2

Syndication

Categories

Archives

   cdpe    crsHat Lady on Zillow