For most of us, a house is the biggest purchase we ever make. It’s a huge commitment in money, time, resources, and emotions. Because it’s often the most valuable thing we own, it can become a major issue when ending a marriage. The question of whether to sell your home during a divorce often comes up, so we will dig into it.
Can You Sell A House During Divorce?
Many reasons exist to hold onto a house. Some are emotional. You put a lot of time and energy into the home and feel a deep connection to it. That’s often difficult to let go of. Others are practical. For instance, it helps maintain continuity for the kids. You may view it as an investment, especially with current real estate prices.
Whatever your circumstances, the question of whether to sell your home during a divorce will eventually come up.
This situation generally plays out in one of three ways:
- First, one party buys out the other and keeps the house. That’s fairly straightforward, but it also takes money.
- Second, if there are children, the custodial parent stays in the home, usually until the youngest child turns 18, and then they sell the house.
- Third, the couple sells the house immediately and divides the profits.
Cases, of course, vary widely from one another. No two are alike. You have several questions to answer when deciding whether or not to sell your home during the divorce process.
Related Reading: How Is Property Divided In Divorce In Oregon?
Factors to Consider When Deciding to Sell Your Home
While far from exhaustive, these are a few questions you should ask in this situation.
What’s The Market Like?
One consideration that impacts whether to sell your home during a divorce is the market. Real estate prices fluctuate and vary by location, time of year, and more. Sometimes it’s hot; other times it’s cool.
- Do you live in a buyer’s or seller’s market?
- Can you get market value?
- Will you bring in more than you owe on the mortgage?
All of these are important questions to ask. You may or may not be able to sell your house in the first place. Even if you can, the process takes time.
Beyond that, you may not be able to get the price you want.
In many other cases, homeowners rush to unload a house as fast as possible for unfavorable prices. You don’t want to sell your home during divorce and take a loss if you can avoid it.
Related Reading: When Do You Need a Divorce Lawyer?
Are You Better Off With Other Assets?
Because a house is such a big piece of the financial puzzle, it’s easy to focus on that. It’s not the only piece, however.
In some cases, you may be better off letting it go in favor of taking other assets in the settlement.
Getting the house seems like a big victory, but it also raises other issues. You have to maintain it, pay property taxes, and more.
If you ultimately decide to sell it down the road, you face capital gains taxes if the property increases in value. By focusing on one big thing, you may miss other financially or emotionally valuable assets.
Related Reading: How to File for Divorce in Oregon
What Are The Benefits Of Selling?
When deciding whether or not to sell your home during divorce, it’s important to do a quick cost-benefit analysis.In short, do the benefits outweigh the costs? Consider what you gain by keeping or selling the house.
Divorcing couples often want to make a clean break. Unloading a shared home, one with lots of emotional baggage, certainly accomplishes this.
You also free yourself from a major financial burden. You may sell your home during divorce and make a tidy profit in the right circumstances. That can offset other costs or evenhelp yous start your new life on the right foot.
Do You Want To Live There?
A good question to ask before you sell your home during a divorce is whether you even want to live there.
Lay out your reasons and determine if you really want the house or not.
Do you want the house simply to keep it from your soon-to-be ex? Is the house too big for you? Be honest with yourself. It may be best to cut ties and sell your home during the divorce, then start over somewhere new.
There are plenty of legitimate reasons to want to stay in a residence. Maybe it’s your dream house or the only place you’ve ever felt truly at home. If it’s where you raised your kids, you may not be ready to let those good memories go yet. Some people just hate moving.
But again, whatever the circumstances, it’s important to be aware of the whys.
Related Reading: Why Moving Out During Divorce Can Be A Big Mistake
Can You Afford to Keep the House?
Maintaining a house is expensive. With all the financial changes you go through when ending a marriage, you have to consider whether you can realistically afford the cost.
Your tax status shifts and you may have child or spousal support payments. Those are all new monetary obligations. On top of that, you may have to pay the mortgage, property taxes, and bills from a single income for the first time.
As much as you want to remain, your financial situation may dictate otherwise. Once you examine the harsh economic realities, you may be better off moving on.
It’s often difficult to let go and sell a home during divorce, but it’s also often the best choice. Don’t think of it as an end but as a beginning. Now you have the opportunity to start fresh and make new memories.
You can find a house that better fits your needs, move to a neighborhood you’ve always wanted to live in, or relax knowing painful memories aren’t lurking in every corner.
However it plays out, whether you sell or don’t, you have some big questions to answer.
Related Reading: What are the Grounds for Divorce in Oregon?