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Selling A House Before Divorce

Selling A House Before Divorce

Marital Property

Selling House Before Divorce

Selling A House Before Divorce

We know that divorce is an emotional process, and it takes courage to start the splitting process. One or both parties failed to save their marriage, making them decide to go on a separate way. Dealing with marital property in a divorce only adds stress. The most important thing for you to consider when you are dealing with the property during a divorce is what your next steps are. Is it best to consider Selling A House After A Divorce? Or Selling A House Before Divorce?

In this article, our goal is to answer possible questions you may have. We will provide you with information and solution that will help you move forward. In an ideal situation, the couple can work together to decide how to divide or split up properties, debts, and spousal assets.

Selling A House After A Divorce

selling a house after divorce

Selling A House After A Divorce is the second option you may have. Agreements may always seem to make things easier. One spouse was granted the house in the divorce, leaving him or her alone to be the decision-maker. Or, divorce was finalized with an order to sell the home with the other spouse receiving some from the sales or proceeds. You and your former spouse won’t have to deal with pesky property issues after you have signed the papers.”

Marital property

Any spousal assets that are acquired when you’re married are considered marital property, belonging to both parties equally, regardless of who paid for it or how it’s titled. Financial assets and debts acquired during the period of the marriage are also considered to be joint, with each spouse benefiting from or being responsible for such things as bank accounts, mortgages, insurance, and loans.

Accepting an offer on a marital property is a huge decision in a divorce proceeding. The sale of the home and the splitting of the proceeds may also provide funds for each person to pay off debts and obtain other housing. Another important consideration is whether you can afford the carrying costs related to the home going forward.

What happens to a property after a divorce?

Once the court granted a divorce, the marital property will be divided equitably (Not always

House with gavel and person writing contract

equally) between the two spouses. This is decided under the Equitable Distribution Law. During the divorce, both spouses must tell the court about their income and any debts they owe.

In an equitable distribution state, a judge may make decisions on who gets what based on income, financial contributions, earning potential, or other factors. However, dividing large assets can come with its own set of challenges. It can be tricky to negotiate and agree on the value of each large asset, especially in a contentious divorce. If a couple can’t agree, a judge will decide.


  • No one to argue. One spouse is accountable for making all the decisions that are easier.
  • It’s easier to plan for moving out.
  • You are likely more focused because you are likely through all indecision of the changes you confronted during your divorce.
  • The spouse selling the home remains in control of the asset


  • You are dealing with everything on your own
  • May need to do some staging to fill in voids in spaces at the home

Is Selling A House Before Divorce fast?

Once you’ve agreed that divorce is inevitable, you need to plan to put the house up for sale as quickly as possible. That way, you’re maximizing the amount of time by having potential buyers. One frequently overlooked benefit of Selling A House Before Divorce is in your tax filings. It’s not uncommon for a divorced couple to move out of the marital property, which technically makes the house you shared into a second home for you both.

Selling A house before divorce is the best way to go. This will shield you from any public record of a divorce filing which is the opposite if you are selling a house after a divorce. You could say selling your house or at least finding a buyer before you start the proceedings would be a good use of your time.


  • Protects the value of the property
  • As the seller, you have not appeared to give up any negotiating power
  • Avoid disputes about who stays, pays for, and maintains the property
  • Shield you from any public record of a divorce filing. 


  • Couples often try to continue living together, which can be difficult and stressful.
  • Both parties are making preparation or future plans while still living together in the house they lived in for years ( moving out, future living arrangement, inconsistencies in plans)

Can a separate property be a marital property?

Yes, it can if it’s mixed with marital property. For example, if one spouse uses the money they had before the marriage to buy a house for a couple, that money might become marital property.

Any inheritance one spouse gets, even during marriage, is separate property. So are personal gifts (unless they came from the other spouse).

What’s the Easiest Way to Deal with the Property During Divorce?

The easiest would be to sell the marital property and divide the money, as it gives you both a clean slate and allows you to move away from each other and have some personal space. Some homeowners struggle to sell their marital property for months on end after finalizing their divorce and end up having to live together, which may cause another issue, stress, and pressure to deal with.

If you’re currently going through a divorce and have been asking yourself, Is it best when you’re Selling A house before divorce or selling a house after a divorce? You need to know which one is the most valuable and reasonable. You need to determine what’s worth the time and effort so that you won’t have to deal with a stressful process. Remember, both parties have to agree on the terms of the offer or agree on a counteroffer if you’d like to continue the negotiations.”

Relocate Your Ex 

If your ex is living in the house, they have certain rights, even if they don’t have an ownership stake. You need to put aside emotion or personal feelings and treat them as you would any other tenant occupying your property. If they do not want to move, you may need to go through a formal eviction process.

Who is responsible for making the mortgage payments during the divorce proceedings?

If you are divorced, and both names are on the mortgage of your home, you and your ex-spouse must both continue making the mortgage payments till you reach the financial settlement, or

Photo stating mortgage

else it will harm your credit score or, worst, could lead to repossession of your home. In almost all cases, the only way to get a spouse off a mortgage is to refinance them off the mortgage. Mortgage payments don’t stop when one spouse has moved out of the house during a divorce. Foreclosure may occur if both ended up not paying the mortgage for the marital property.

Do I Have To Refinance After Divorce?

If you and your ex-spouse are dividing up the shared property after a divorce, you can refinance your house; it could be one way for both to move forward.  it’s important to note the differences between the names on your home’s mortgage and the names on the title. The names that are on the mortgage show who’s responsible for paying back the debt. If both your and your ex-spouse’s names are on the mortgage, then both of you are liable for the monthly payments.

What factors should be taken into consideration when dividing property?

The factors considered by courts vary from state to state. These factors below apply to the equitable division of property, not the division of things like child custody, child support, or spousal support.

  • Duration of the marriage
  • Income and property of each spouse when they married and when they filed for divorce
  • Health and age of each spouse
  • If the divorcing couple has minor children, the need of custodial parent retains the marital residence.
  • The value of benefits that a spouse may lose due to the divorce
  • Any loss of inheritance or pension rights of either spouse because of the divorce
  • Any award of spousal support or child support the court will be making
  • The degree of liquidity of the divorced couple
  • Tax consequences of the distribution
  • The wastefulness of either spouse
  • The future financial circumstances of each individual
  • Any other factor relevant to fairness

What is Divorce Mediation?

Divorce mediation and emerging collaborative process to negotiate help divorce couples to separate with less stress, conflict, and expense. This is a more peaceful alternative to traditional divorce negotiations. By combining divorce mediation with negotiation, collaborative law increases the facilitative nature of divorce negotiations in a traditionally competitive realm. It also eliminates the conflict of interest faced by lawyers who could gain more financially from a long litigation process than from a quick settlement. 

Should I sell with a realtor?

It’s fine if you wanted to sell a house with estate agents. Their business is to arrange the listing and selling of homes. They may have market knowledge and experience, but aside from them having a commission for their service, there is no guarantee that your house will sell faster, which means that it may take several months to be worked on. It may be a realtor’s fault, might be the market, or might be a lack of good potential buyers, but the bottom line is when you listed it with a realtor, there is no guarantee of sales. In addition, the value may change if the market is in flux.

Selling a property with an agent requires you to deal with several hassles, such as cleaning, repairs, and renovating in addition, you have to be aware that interested buyers may back out of the deal, so it’s important to know how to deal with potential problems.

Short sales and paying off

It can be difficult selling a marital property if you owe more on the mortgage than the value of the home. This would require paying the difference off or opting for a short sale, which means selling for less than the home is worth. You do need to keep in mind that both of your credit scores will be affected by a short sale, and you can both be responsible for whatever is left owing on the loan. Some lenders will opt to release sellers from any liability for a short sale.

This is not the fastest or the best course of action you can take to avoid the traditional process that will take much of your time.

Tax Consequences

In some situations, you could be forced to pay a capital gain tax (CGT) if you decide to sell the home, which can be expensive, meaning having to sell assets before you get a divorce. Selling a house before divorce is something that needs to be done the right way, or you risk some big tax implications. Seek guidance from a tax advisor if you want to know more.

Capital gain tax in divorce

Spouses are taxed as separate individuals and are each potentially subject to (CGT) on any chargeable gains arising on disposals of assets they make in a tax year. The definition of disposal includes not only the sale of an asset but also disposal by way of a gift or a transfer under a divorce settlement.

Realtor or Cash Home Buyer?

Many people or sellers will communicate with or use a professional realtor to sell their marital property. This can take time, though, and it can be costly when needed to be repaired before selling. You also have the expense of closing costs to deal with. If you need to sell the home quickly, you could take a less conventional route and sell it to a cash house buyer.

A cash house buyer will purchase the home as it is, so you don’t have to make costly repairs. They also have a quicker turnaround time, and you won’t be paying the fees that you pay when using a realtor. Cash buyers helped thousands of homeowners sell their homes quickly, as-is for cash. What they offered is what you are getting in your bank account.

Key Take Aways

  • If one person insists on keeping the house, it’s important to understand the liability risks and difficulties of being a single homeowner.
  • Keeping the home in a divorce isn’t a win if it will bury you financially somewhere down the road.
  • Selling your marital property during a divorce can be a hard choice to make, but it can also give you the opportunity for a fresh start.
  • Selling A House Before Divorce makes you avoid the traditional process of selling and instead helps you get rid of the property before the separation.
  • Selling A House After A Divorce, a prospective buyer or agent sees the divorce, and the fact the divorce has already been completed changes everything.

As stated above, every divorce case is unique and different states have different regulations and laws when it comes to property division during or after a divorce. For specific legal advice about a problem you are having, communicate and get the advice of a lawyer. Be sure to check with your lawyer for more information on your state’s alimony laws.

Now, are you Selling A House Before Divorce or Selling A House After A Divorce? Options are provided, and you should learn considerations for keeping and selling a marital property. Reading this article gives you the chance to figure out what’s best for you, and that’s our purpose. We have helped a lot going through the same circumstance, and we will never get tired of helping.  “Nothing placed upon this website is intended to be relied upon as legal advice.”

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Cody Kewley

Cody Kewley is the founder and CEO of Ready Set Sell My Home, LLC. As a Real Estate Investor Kewley has assisted hundreds of home-owners sell their home or investment property. A former Grand Canyon and Summa Cum Laude graduate with a degree in Business and Entrepreneurship.

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