Getting divorced is certainly one of the worst situations a person can find themselves in. Not only will you have to go through immense emotional and psychological trauma, but you will also have to face numerous financial challenges along the way.
Considering most married couples own a house, a question is posed regarding the fate of the house. Will the house be bought out by one of the partners, or will the partners put the house for sale and share the profits together.
Before selling the house it’s important to know that you will have to pay off the mortgages and brokers fees with the revenue from your house sale.
A lot of people wonder how you sell a house after or during a divorce. Here are some of the most important steps when selling a house.
1) PICKING AN AGENT
While it is fine to try and sell your house without the service of an agent, it is not recommended. The stress of the divorce is already enough for both partners, you don’t need another unnecessary burden.
Picking an agent shouldn’t be a case for arguing. You have two options: picking the same agent that sold you the house in the first place, or picking a completely new agent.
If both of the parties agreed on selecting a new agent, it’s best if they could come to an agreement on a specific person too. This is usually not the case and the decision of a third party is needed. This person can be a close relative or a mutual friend.
Quick Fact: States divide property differently. Some states recognize the legal theory of “community property” while others rely on a judge’s decision after listening to each party and using a special formula to determine the division of property. (Source: http://family.findlaw.com/divorce/checklist-dividing-marital-property.html)
2) SHOWCASING THE HOUSE
This is a more difficult step in the process because it involves a lot of tedious tasks such as painting, repairing and moving furniture. You will also have to splash out some cash for these tasks if necessary.
If you have moved out from the house after you put it on the market, it would be a brilliant idea to hire an agent to stage your house. Staging involves composing and customizing the furniture and other items of the house in such a way that will make it presentable and sway the customer in to buying a house. This is a very important step.
The partners can also mutually agree on making the house more presentable if they feel they are up to the task.
Quick Fact: If you’re getting a Wisconsin divorce, all assets will be considered during the division of revenue generated by the selling the property. (Source: http://www.sterlinglawyers.com/wisconsin/divorce/)
3) DETERMINING THE PRICE
The price the agent suggests is the best price you will get. The reason you hired your agent is because of his expertise in this area and your relative incompetence on the other side.
Giving your partner and yourself the task of choosing the price could just steer another conflict, and you already have enough of those.
If the agent’s price seems completely out of touch with reality, you should look for another agent. But before that, ask someone else for an evaluation to make sure that it’s not you who’s out of touch with reality.
Quick Fact: State laws vary. For example, if you’re getting a divorce in New York, it’s an equitable distribution state. This means the marital property will be divided between spouses in a fair way. (Source: http://www.divorcenet.com/resources/divorce/marital-property-division/new-york-divorce-dividing-prop)
4) SHARING THE REVENUE
After the sale of the house, the last step is to redistribute the money. This is a relatively straightforward job. The first thing you need to do is fulfill any outstanding obligations and make other payments if necessary.
If one spouse has been the major contributor of post marital mortgage payment, which means that he has been actively lowering the principal value and increasing the equity. This partner will have a varying amount of share in the house revenue after the necessary obligations and payments have been fulfilled. He will be awarded the amount of money proportional to his contribution, and the other party will get what is left.