Going through a divorce is tough. It takes a physical and emotional toll on you, no matter the circumstance. Divvying up the assets adds even more stress to an already volatile situation. Because we buy houses in Oceanside professionally, we’ve experienced every kind of situation under the sun.
If you’re in the middle of a divorce proceeding and are thinking about your properties, here’s what you need to know.
How Is Property Divided During A Divorce?
When a couple undergoes a divorce, the property needs to be divided equitably between the spouses in question. Take note that equitably does not always equate to equality. This will be decided upon in accordance with the Equitable Distribution Law.
During the court proceedings, each party will come to court to speak about their current income and any outstanding debts they may have. This will be used as the basis for dividing the assets.
What Does Equitable Distribution Entail?
When properties are divided equitable, this means it is done in as fair a manner as possible in the eyes of the court. This may mean 50-50 division, but it is not always the case.
Which Properties Are Included In The Divorce?
Essentially, there are two types of property considered in a divorce. The first is property that the couple purchased together during their marriage, otherwise known as “marital property.” The second is called “separate property” and refers to property one of the parties has owned prior to the marriage or was gifted to said party by someone other than the spouse.
Only marital properties are divided during the divorce.
How Does The Court Decide On What Is Equitable?
There are a number of things the court considers when dividing the properties equitably:
- The income and property of each spouse while they were married
- How long the marriage was
- The age and overall health of each spouse
- In the case of having children, whether or not one of the spouses get full custody of them and needs a house to raise them in.
- Any other marital property the children grew up in
- The loss of inheritance and pension benefits
- How much effort a spouse put into keeping up the household (for example, a wife sacrificing her career in order to become a full-time homemaker)
Will I lose My Home?
Not necessarily. The court may order the home to be sold or may delay the sale if one of the spouses is still currently raising the children in the family home. The court may also grant the home to one of the houses.
What Can I Do?
If neither spouse wants to keep the family home or neither one can buy out the other, the couple can agree on selling the house and divide the sales proceeds. Subject, of course, to any mortgage payments, second mortgage, and broker’s fees. Take note that capital gains tax may also apply.
If you decide to sell, here’s what you need to do.
1. Pick An Agent
This step is optional because you can also choose to sell the house yourself. While possible, it will just be trickier when you’re in the midst of a divorce. Choosing an agent may also be more difficult than it seems, as each of you may have a preferred agent.
2. Determine The Home’s Value
Work with the agent to determine how much you can sell your home for.
3. Prepare The Home For Showing
This can be the most time consuming and labor-intensive portion of the sale. You’ll need to prep your home to make it as attractive as possible to potential buyers. This may or may not include renovating certain parts of your home. This also involves cleaning the home, getting rid of any clutter, and adding some touches like fresh flowers to make it more inviting.
4. Divide The Profits
The last step is figuring out how to divide the sales proceeds. Typically, this will be 50-50 but it will also change depending on how much each of you have spent on the divorce or postseparation mortgage.
5. Sell To A Professional Home Buyer
If you want to skip steps 1-3 and go straight to number 4, your best bet is by selling it to a cash homebuyer like Ignite Properties. We buy houses in Oceanside, CA regardless of the state or condition it’s in. When you sell through us, you’ll be able to get 100% of the sales proceeds, no closing deals or agent fees to think of!
LET US HELP YOU THROUGH YOUR DIVORCE!
We at Ignite Property Solutions, LLC. have a wealth of knowing in selling houses. As professional cash homebuyers, we have the appropriate tools, resources, network, and experience to help clients sell their homes quickly at a price that is profitable to all. Contact us today at (760) 302-7700 to learn more.
