How to Sell a House During a Divorce: Divorce is not easy. It’s an emotional and stressful time for everyone involved and we are here to help. Did you know that selling your home during divorce can potentially save you money on capital gains tax as long as you sell while you’re still legally married? You’re eligible for an exclusion up to $500,000 while legally married. Once you divorce that exclusion drops to $250,000. Read on for more helpful information.
How to Sell Your Home During a Divorce
One of the hardest parts of divorce is the sale of your home – ouch, I said it! A home holds sentimental value, whether you are going through a divorce or not. Sometimes it’s better to rip the band-aid off and move on immediately, and sometimes it’s better to do your best to hold onto it. There are a number of reasons to consider, and we are going to go over them for you in this article.
Selling a home during a divorce holds one major difference than a typical sale… you have to figure out who is going to get what before you sell. Whether it’s the furniture, the electronics, or the money from the sale, the hardest part is going to be figuring out who walks away with what.
You will want to consult with an attorney right away. The attorney is the mediator who will help you through dividing up possessions and equity so that it is fair. Before you contact a Realtor you will need an understanding of who is going to walk away with what after the sale.
A Realtor who is familiar with divorces can help you to determine how much your home is worth and help you position your spot in the market to attract the most buyers to get you top dollar.
Should I Sell My Home Before or After Divorce?
Before you divorce is likely the best scenario for selling your home during a divorce. It’s important to meet with a local Real Estate expert and an attorney, and let them know every detail of your situation so they can play out the results with you. You want to walk away from the sale of your home with as much money as possible without leaving anything on the table, and this means you will want to share everything with your team. We’re here to help you.
What are the Taxes when Selling a House During a Divorce?
Capital Gains Taxes are worth paying attention to when selling your house during a divorce – this shouldn’t be overlooked and consult your tax person or CPA if you’re confused. The reason being that as a legally married couple you are eligible for a $500,000 tax exclusion, while individually you’re only eligible for a $250,000 tax exclusion.
Your tax strategy when selling your home can have serious financial implications, upwards of tens of thousands of dollars or more in some cases, so it’s important you educate yourself with good information on the topic.
Buying a House During a Divorce
I know buying a house is a lot of fun and can take your focus away from a divorce, but buying a house while going through a divorce can be tricky. If it’s an emotional decision you should consider renting for a year, that way you will know more about how your financial situation will play out after the divorce. It could be that you want to buy a house simply to make yourself feel better, and in some cases to make a former spouse upset, and that is never a good thing.
Conclusion
If you’re certain a divorce is in the cards for you, first take a deep breath. Everything will work out the way it should if you don’t make decisions based on emotions, and the team does’t suck at their jobs who you surround yourself with. Make sure to look up online reviews of real estate professionals and attorneys you interview regardless of the referrals you get from friends and family. I’m here to help and be a soundboard. Call me anytime. It would be a pleasure to chat with you.
Your Los Angeles Real Estate Expert
I’m a local real estate agent with The Shelhamer Real Estate Group, and It would be my pleasure to help you find the perfect property to call home in Los Angeles CA, or if you’re thinking about selling a house, condo, or multi-family building in, Los Feliz, Silver Lake, Hollywood Hills, Atwater Village, Echo Park, Mount Washington, or Downtown Los Angeles, it would be a privilege to help you get top dollar for the sale of your property.
Lets chat sometime. 310-913-9477 or contact me
