Reasons To Sell
Save Emotional Damage
The process of divorcing is hard enough when both parties move elsewhere, but moving one person out of a home that used to be yours is truly painful. Depending on the emotional state of both partners, it can also be dangerous.
A clean break still hurts, but you can reduce the corrosion of memories and distress by enjoying a new start in a new space. By selling the house together and cooperating on the process, you can reduce financial worries and avoid the financial gutting all too common in divorce.
Benefits of Selling as a Team
The first benefit to selling before the divorce is that you can enjoy the capital gains tax savings. By selling while still a married couple, you can exclude a great deal of equity from having to pay capital gains tax on it. This means that, once you pay
- remaining mortgage
- sale fees, such as inspections
the remaining monies can be split per your pending divorce agreement and you can both walk away clean and ready for a fresh start.
Embrace a New Dream
Many homebuyers purchase their first home with the intention of fixing it up. Fixer-uppers can destroy marriages if you aren’t ready for the work and disruption. If this home was your dream as a couple, as a single, it can wipe out any chance you had for sleep in any form.
Houses take work. Fixer-uppers take patience, skills and money. To avoid trying to shelter in a completely derelict home, selling as is may be the best option. This is particularly true for young families. A house under construction is a hassle for an adult; with children around the space, it becomes a hazard.
Avoid Home-Showing Stress
Keeping your home staged for showings is tough enough when everyone is getting along; contentious situations can make this impossible. By selling to an investor, you can make one appointment, give one showing, and make one payout arrangement so everyone can move on.
Showing your home while divorcing while one person is moving out can be especially disruptive; moving is inherently messy and showing works best when the home is tidy. However, if you can come to a “win-win or no deal” agreement with an investor, you can both move on with a bit of breathing room.
Buying Out Your Spouse
If you have the cash and can make the payments on your own, buying out your spouse is an option to help you both move forward. However, this can get contentious over time, particularly if there are dependents involved.
While it may appear to be best to have the children stay in the same space while one parent remains and one parent sets up visitation, children may not understand the finality of divorce if one parent continues to visit occasionally. In the event that the custodial parent finds a new partner, confusion over the family roles can create a great deal of strife. With a sale, a clean break and a new start for both adults, the whole family can move on into a new normal.
Finding Peace on the Other Side
Splitting a household is difficult. Carving a household from an existing family is harder. If you can get along well enough to sell the house together, you can walk away with more of your investment.
The decision to avoid financial destruction of the other party will protect both parties in the long run. However, this can come at a cost. If potential buyers find out that there is a divorce in the works, you may get a lot of insultingly low offers. You will have to open your home to strangers during a stressful, painful time. Worst of all, you, your former partner and your children can be stuck in a limbo of sadness.
Getting a fair quote from a real estate investor can cut through the worries of showing the house. It can also speed the process along, getting you a quick payout and allowing you to move forward with your new life on your own.