Every year, more than 827,000 couples file for Divorce in the United States. If you’re going through a divorce right now, you’re definitely not alone.
Even the amicable of divorces bring about questions and feelings of
uncertainty. One of the most common questions people ask is “what happens to a House in a divorce?”
Are you unsure of what’s going to happen to your house? Are you wondering who will get to keep it? Are you worried about how you’ll maintain it once your divorce is finalized?
Read on to get answers to all these questions and learn about your options for handling your house after a divorce. As always we are house buyers in Colorado Springs and we can give you an all cash offer on your home within 1-2 hours at our home page fast home options.
What Happens to a House in a Divorce Colorado Springs
There are a few different things that can happen to a house when you’re getting a divorce. The outcome depends on a lot of factors, including the following:
- Is the house marital property (meaning you and your spouse bought it together)?
- Is the house separate property (meaning only you or your spouse purchased it)?
- Do you live in a community property state (if this is the case, everything acquired during your marriage is owned equally by you and your spouse)
- Do you live in an equitable distribution state (if this is the case, a judge will make decisions regarding the division of your assets)
These conditions apply primarily if you and your spouse end up going to court over the division of assets during your divorce. You can also work together to come up with a plan for the house without getting a judge involved.
What Are Your Options?
If you and your spouse are able to work together to address what happens to the house (which is highly recommended), there are a few different options you can consider.
The following are some of the most common ways divorcing couples handle their home:
Dividing Large Assets
If you and your spouse have a number of large assets, you may want to try and divide them equally between yourselves. For example, you might get to keep the family house and your partner gets to keep the vacation home.
Taking this approach can help you to finalize your divorce sooner, but the negotiation process can be challenging.
Buying Out the Other Party
In this scenario, one spouse pays the other spouse half of the current market value of the home. As a result, they gain sole ownership of it. If one spouse is dead set on remaining in the home, this can be a good solution. It’s only an option, though, if that spouse has sufficient capital to cover the purchase.
Co-Owning the Home
This approach involves both spouses continuing to share ownership of the house splitting mortgage payments, and deciding who receives the proceeds from the house when it’s sold.
This is a practical option if neither spouse can afford the house by itself. Negotiating payments and continuing to share ownership can be tricky, though.
Selling the Home
Finally, you and your spouse might decide to sell the home and split the proceeds. This provides you with a clean break and helps to address financial issues that may have been brought on by the divorce (hiring an attorney, settling debts, finding a new living situation, etc.).
When Should You Sell the House?
If you’re leaning toward selling the house and starting over fresh, you might be wondering whether you should sell it before your divorce is finalized or after.
There are benefits to both options, including those explained below:
Selling Before
If you sell your house before the divorce is finalized, you can use the proceeds from the sale to help cover the costs of the divorce.
It also allows you to start over fresh with additional money in your bank account.
You and your spouse will have time to agree on the terms of the sale (such as how the proceeds will be split), too, and don’t have to worry about dealing with it later on.
Selling After
When you sell your house after the divorce is finalized, you have more time to decide how you want to proceed and where you want to go. You don’t have to worry about making a rash decision you’ll regret later. Selling after divorce also gives you time to wait for a more favorable selling market.
Tips for Selling a House During a Divorce
Whether you choose to sell your home before or after your divorce is finalized, there are a lot of things you can do to ensure the sale goes as smoothly as possible.
The following are some helpful tips that will simplify the process of selling your house:
Make Simple Repairs
Simple repairs and renovations can increase the value of your home and help it to sell faster.
Taking care of damaged walls, adding a fresh coat of paint, and replacing hardware in the kitchen and bathroom can go a long way toward getting your home off the market.
Increase Curb Appeal
Consider enhancing the exterior of your home, too. This helps to increase curb appeal and makes your home appear more inviting.
Clear Clutter
The cleaner and more open your house is, the easier it will be to sell it. Get rid of clutter so people can visualize themselves living in your home.
Sell to a Home Investor
If you don’t have time for any of this or want to sell your house as soon as possible, consider selling to a home investor instead.
Home investors buy houses as-is for cash, so you don’t have to worry about repairing damage or making any pricey changes to your home.
Home investors work very quickly, too, so you can have cash in hand for your house much sooner than you would if you worked with a real estate agent, and you don’t have to worry about paying any closing costs or commissions.
Sell Your House Today
As you can see, there’s not a clear answer to the question “what happens to a house in a divorce?”
It depends on a lot of factors, from laws in your state to which one of you actually wants the house. Sometimes, the best option is to simply sell the house and start over somewhere new.
If you’re in this position now and are looking to sell your home as soon as possible, we can help.
Contact us today to learn more about our services and to get an all-cash offer for your house.
