Divorce. When we first fall in love we can’t imagine a marriage ending in divorce, but it’s also sadly a common reality. The American Psychological Association puts the rate of divorce for citizens of the United States at approximately 40 to 50% for first marriages. But what happens to shared assets, such as real estate, when a marriage ends? Do you have to split all assets 50/50?
Can You Divorce Without Selling the House?
You have options when it comes to keeping a house during the divorce or selling it to split 50/50. The first step is letting your lawyers and the Court know the date you acquired the house. This important piece of information can help decide whether the house will need to be sold and the assets divided equitably, or if the house is not considered a marital property.
If the Court decides the property is a “separate property” – i.e. purchased before the marriage, gifted or inherited to you as an individual, or purchased with separate assets by you at any time – in both community and equitable distribution states, the spouse has no rights to this property. There may be some exceptions to this, such as in a case where the property was updated in a way that added to the overall value of the house. A lawyer will be able to help you decide whether a property is considered separate or a marital asset.
A court will look at several factors to decide who gets the house, including:
The value of the property.
The financial circumstances of each partner.
The employability of each partner.
Both physical and monetary contributions to the marital home.
The age and physical and mental health of each partner.
The amount of time each partner will have custody of the children.
Who Gets The House in A Divorce?
During a divorce, it’s State law that will govern the division of assets. These laws play a heavy role in how your marital assets are divided. Most states follow the law of equitable distribution. In these cases, during a divorce a judge will divide your property in a way that the Court considers fair. This doesn’t necessarily mean evenly or equally but can be based on a number of factors, including individual contributions to the household (such as child rearing).
There are nine states with community property laws. They are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska has community property laws as well, but only if you opt in to this method. In community property states, all assets obtained during the marriage (i.e. marital property) are divided 50/50 with only a few exceptions.
There are a few options both you and your partner and/or the Courts might choose when it comes to selling (or not selling) your marital home. These include:
One of the spouses buys out the other legal interest and keeps the home
For married homeowners who live in a community property state, you and your spouse will split all assets in half. Does this mean that you’ll need to sell your house? Not necessarily! You can negotiate with your spouse in Court to pay off their legal interest in the house so that you can keep it. To do this, you would also need to be able to be the sole person on the title in a timeframe required by the Court after the divorce decree is agreed on.
One spouse keeps use and occupancy of the home for a specified period; typically when the youngest child turns eighteen, then the house can be sold.
In many states, a parent with custody of minors may be allowed use of the house until the child reaches the age of eighteen. Depending on what the Court decides, the spouse allowed occupancy may or may not be responsible for paying the mortgage, bills, insurance, etc, and the house would be theirs until a time when all children reach the age of eighteen. Only then would the house need to be sold and the assets divided between spouses.
Co-own the home
Divorce doesn’t have to be an emotional and monetary war. The ability to co-own a property might be the best situation for the family’s welfare, whether together or separate. If you have children and want to keep them in the same house, you could both stay on the mortgage to create as little disruption as possible. An example of this would be a wife and husband who have three children. The husband works outside of the home and is the sole provider of money for the couple, but the wife is the main care provider for their children. With her status as homemaker, she may not have the funds, job history, or ability to buy out her husband’s percentage in the property.
There are some benefits of this situation, including stability for the family, but it would require trust by the departing spouse that their previous partner will be able to make their payments on time. Otherwise, both partners would take a ding on their credit record.
The house is sold immediately and any equity is split up
In some ways, selling the house can be the simplest and most straightforward solution. The house is put up on the market at an agreed upon price and, once it’s sold, the assets are split up either 50/50 or as the Court designates. Depending on the market in your area, this could be a very fast solution (or very slow). If your area’s housing market is sluggish, the house is in poor repair, or there are liens against the title, a regular home sale might not work for your situation. In those cases, selling the property directly to a direct homebuyer or investor might be a faster and easier way to get the property sold so you can move on with your life.
Selling Your House During A Divorce?
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Steps to Sell a Home During Divorce
1. Hire A Divorce Specialist Real Estate Agent
Before you put the house up on the market, your first step is determining who gets what either through lawyers or the Court. Divorce can be an extremely turbulent and emotional time for both partners. Let professional experts with experience in selling real estate during a divorce guide you through this process.
2. Agree On Home Sale Specifics
You and your partner will need to decide how you would like to sell the house. Would you prefer a fast sale so that you can split the assets and move on with your life, or is it worth it to you to spend a few more months fixing up the property to make it “market ready” so that it can sell for the most money possible in the current housing market? If you can’t come to a decision through your lawyers, the Court may need to become involved.
If you decide to spend the money on any necessary repairs and upgrades, you’ll want to come to an agreement on how to split those expenses, as well as how that investment may impact the final split of the profits. Before you spend one more dime, make sure to finalize these agreements with a lawyer so that you’re not left high and dry at close.
But expenses and profits are just the tip of the iceberg. How will the house be dealt with during a listing? Whose agent will you use? What price point should it be set at? Will it be empty or will you or your spouse live in it until the property is sold? Who is responsible for the mortgage and bills and, if no one is living in the house, who is the one who will make sure that it’s ready to be shown during open houses and daily showings? If possible, let your lawyers hash this out before taking it to court. This can save you a lot of time and help keep any profits from the home sale being eaten up by the price of paying a lawyer to represent you in court.
3. Know What to Expect in Order to Close the Sale
There’s one more step where you and your ex-partner will need to button down your emotions to work together so that you can both make a profit – reviewing offers from potential buyers. If only one or two offers filter in, then this might be an easy decision, but in places where the housing market is hot and you get multiple different offers there might be a lot of back and forth using your lawyers and real estate agent about which offer is the right one for your situation. To help with this, try to agree on a strategy before putting up the house for sale. Whether you decide to take the first offer that comes in with no contingencies or you would prefer to choose the offer that will net you both the most profit at close, you must come to a decision together before you can sell.
4. Divide the Proceeds
It’s the final step, and hopefully the simplest! Whether the Courts or your lawyers helped you settle your divorce, you should already understand how the proceeds of the house sale will be divided. If there are any liens or obligations on the house, the escrow company will pay them off before distributing the money so that you can move on with your life.
OR
5. Sell Your House AS-IS to A Cash Buyer
Are you stuck in a situation where you and your ex-partner can’t (or don’t want to) speak? Are you ready to be out of the marriage and on to the next phase of your life? Is the stress from the divorce eating away at you, and a fast and straightforward sale of your shared marital property seems like the best option for everyone? Selling your property to a direct cash home buyer or investor might be the right option for you!
Investors and direct home buyers pay cash for properties, no matter what the condition or the owners’ financial (and marital) situation. They specialize in fast closings so that property owners can get out from under a property faster than with a traditional home sale. They also purchase houses and properties as-is, meaning that even if the house needs upgrades or major repairs, they still are willing to pay cash for it and close as quickly as possible. For two spouses stuck in a painful and expensive divorce, this might be the best option for the family. Not only are they able to sell the house for a fair cash amount, but they’re able to close quickly and without having to negotiate terms through lawyers and a shared real estate agent.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
TK Properties is a local house buying company that’s built their business by buying houses for cash, no matter what the condition or the homeowners’ financial situation. We promise competitive cash offers without the hassle of dealing with real estate agents, lawyers, and more. If a direct home sale sounds like the best option for you, let’s chat! Call us day or night at (334) 384-8887. We have a reputation for buying houses with less stress and less fees.
If you own a property that you need to sell fast due to divorce, we have a solution. Contact us today and get a competitive cash offer for that house or rental property. We buy homes, no matter what your individual financial situation or the property’s condition. Even if the house has been neglected for years or suffered damage in the last storm, once you accept our fair cash offer our team of experts will handle all of those expensive repairs and upgrades so you don’t have to! We make selling a house during a divorce as hassle-free as possible.
Selling My House When Going Through a Divorce in Alabama: A Complete Guide
Divorce is one of the most emotionally and financially stressful life events. On top of dealing with the emotional toll, there’s the challenge of dividing assets—and for many couples in Alabama, the family home is the biggest one. Figuring out what to do with your house during a divorce can be tricky, especially if you’re hoping to sell it quickly and fairly split the proceeds.
This article will guide you through everything you need to know about selling your house during a divorce in Alabama, ensuring the process is as smooth as possible for both parties. Whether you’re looking for options to sell fast or want to understand Alabama’s property laws, we’ve got you covered. And if you’re ready to sell your house quickly and stress-free, contact us at Sell My House Fast Montgomery AL for expert help.
Understanding Alabama’s Divorce Laws and Property Division
Before deciding to sell your house, it’s important to understand how Alabama law handles property division. Alabama is an “equitable distribution” state, which means marital assets, including real estate, are divided fairly—but not necessarily equally—between spouses.
What qualifies as marital property?
Generally, property acquired during the marriage is considered marital property, even if only one spouse’s name is on the title. For instance, if you bought your house after you were married, it’s likely marital property and subject to division. However, property owned before the marriage or acquired through inheritance may be considered separate property.
The division of assets can get complex, which is why many divorcing couples in Alabama choose to sell their house and split the proceeds rather than trying to determine who keeps the property.
Why Selling the House Is Often the Best Option
For many divorcing couples, selling the house is the easiest solution. Here’s why:
- Financial Relief: Mortgage payments, property taxes, and maintenance costs can be difficult for one person to manage alone. Selling the house allows both parties to walk away with financial freedom.
- Clean Break: Holding onto the house may require ongoing interaction between you and your ex-spouse, which can be emotionally draining. Selling provides a fresh start.
- Fair Asset Division: Selling ensures both parties receive their fair share of the home’s value, avoiding disputes over its worth.
- Avoid Foreclosure: If neither party can afford the house, selling quickly may prevent foreclosure, which can harm both spouses’ credit scores.
Steps to Selling Your House During a Divorce in Alabama
1. Agree on the Decision to Sell
Both parties must agree to sell the property. If one spouse wants to keep the house, negotiations may involve buying out the other spouse’s share. However, if selling is the agreed-upon solution, both spouses should cooperate to ensure a smooth sale.
2. Determine the Home’s Value
Start by determining your home’s fair market value. A real estate agent can provide a comparative market analysis, or you can hire an appraiser for an accurate valuation. Knowing the value helps set a competitive listing price and ensures both parties get their fair share of the proceeds.
3. Prepare the House for Sale
Even during a divorce, presenting your house in its best light is key to attracting buyers. Consider decluttering, making minor repairs, and staging the home. However, if you don’t want to deal with repairs or showings, selling to a cash home buyer may be the ideal solution.
4. List the House or Sell to a Cash Buyer
You have two main options when selling your house during a divorce:
- Traditional Sale: Listing with a real estate agent can help you get top dollar, but it takes time and involves showings, negotiations, and commissions.
- Cash Home Sale: Selling directly to a company like Sell My House Fast Montgomery AL allows you to bypass the hassle of a traditional sale. You can sell as-is, close quickly, and split the proceeds without delay.
5. Divide the Proceeds
Once the house sells, the proceeds will be distributed according to the divorce agreement or court order. Ensure all joint debts tied to the house, such as the mortgage, are settled before dividing the remaining funds.
Tips for Selling Your House Quickly During a Divorce
Divorce is stressful enough without a drawn-out home sale. Here are some tips to sell your house fast in Alabama:
- Price Competitively: Setting the right price attracts buyers and prevents the house from sitting on the market.
- Work With Professionals: Whether it’s a real estate agent or a cash home buyer like Sell My House Fast Montgomery AL, having experts on your side streamlines the process.
- Sell As-Is: If time is of the essence, skip repairs and sell your house in its current condition to a cash buyer.
- Be Flexible: Cooperate with your ex-spouse on decisions like pricing, showings, and closing dates to avoid unnecessary delays.
Why Sell to a Cash Home Buyer During a Divorce?
Selling to a cash home buyer offers several advantages, especially during a divorce. Here’s why it’s an attractive option:
- Fast Closing: Cash buyers can close in as little as 7 days, allowing you to move on quickly.
- No Repairs Needed: Sell the house in its current condition, saving time and money.
- Simplified Process: Avoid showings, open houses, and buyer negotiations.
- Fair Offers: Companies like Sell My House Fast Montgomery AL provide competitive cash offers, ensuring a quick and fair sale.
Common Questions About Selling a House During Divorce in Alabama
Do I need my spouse’s permission to sell the house?
Yes, if the house is marital property, both spouses must agree to sell. Even if the house is in one spouse’s name, the other may have a legal claim to it.
What happens if we can’t agree on selling the house?
If you and your spouse can’t agree, the court may intervene and order the sale of the property. Mediation can also help resolve disputes amicably.
How is the sale divided?
The division of proceeds depends on your divorce settlement. In Alabama, equitable distribution means the court considers factors like income, debts, and contributions to the marriage when dividing assets.
Moving Forward After Selling Your House
Selling your house during a divorce is a significant step toward starting fresh. Use the proceeds to settle debts, secure new living arrangements, or invest in your future. The goal is to create a stable foundation for your next chapter.
If you’re looking for a fast, stress-free way to sell your house during a divorce, consider working with Sell My House Fast Montgomery AL. We specialize in helping Alabama homeowners sell quickly, no matter the situation.
Why Choose Sell My House Fast Montgomery AL?
At Sell My House Fast Montgomery AL, we understand the challenges of selling a house during a divorce. Our team provides:
- No-obligation cash offers
- Fast closing timelines
- Fair market valuations
- Compassionate, professional service
Don’t let your house add to the stress of your divorce. Contact us today for a free consultation, and let us help you move forward with confidence.
Selling your house during a divorce in Alabama doesn’t have to be overwhelming. By understanding your options and working with trusted professionals, you can navigate this transition with ease. When you’re ready to take the next step, visit Sell My House Fast Montgomery AL for a solution tailored to your needs.
