Divorces are no walk in the park when there is real estate involved. Having to decide whether to keep or sell a property during a divorce can be very challenging.
The following questions should be answered if you have decided to divorce. What should I consider when divorcing when there is community property involved? Should I sell the house first or wait until after the divorce is final? How is the tax liability or capital gains divided in a divorce? Who is responsible for the bills related to the property during the divorce? Can I negotiate a house buyout at divorce?
We reached out to Attorney Brian J. Steinberg of Steinberg Law Group, a local Las Vegas family law firm, to provide answers to the questions above. Consider the answers below if you’re selling a home during a divorce.
1. What is the first thing to consider when divorcing and there is community property involved?
When a marital residence is part of a divorce, it is important to know the following information:
● How is the residence titled? (Both names or one party’s name?)
● Whose name is on the mortgage? (Both names or one party’s name?)
● Was there a separate property down payment by one party?
● Is there community equity in the home or is it upside down?
● Is one party in a better position to refinance the home into his or her name?
● Can either party afford the home after the divorce?
2. Should I sell the house first or wait until after the divorce is final?
“Selling a house before the divorce might be a good idea but might not be a good idea. If it’s an alimony case, then selling the home before the divorce might entail that the party who will be paying alimony has a larger amount of funds available to pay alimony. For this person, selling a house before the divorce is a bad idea. Also, if the house sells and there is equity to divide and it is divided before the divorce, then this might affect a party’s settlement position probably in an adverse way since these funds can be used for litigation purposes. However, if the house is the only major asset, then selling the house before the divorce might minimize litigation and help to settle the divorce.”
3. How is the tax liability or capital gains divided in a divorce?
“There are usually no capital gains for a marital residence in divorce. However, the party awarded the property will also receive the tax liability and tax benefits associated with homeownership.”
4. Who is responsible for the bills related to the property during the divorce?
“The Court will usually designate one or both parties to handle the bills related to the property during the divorce. This depends on whether one or both parties reside in the residence and whether the party in the residence is not working.”
5. Can I negotiate a house buyout at divorce?
“Yes, this will be resolved during the divorce action either by the court or by a negotiated settlement of the parties. ”
As you can see, there are many factors to consider when making a decision about selling a home during a divorce. It’s best to make a decision that will benefit both parties, especially if children are involved. It’s also essential that you choose the best agent to minimize the stress of selling while divorcing. At Realty Investments of Nevada, we want our clients to have every advantage in getting their homes sold fast and for the most profit, no matter what the situation. We have helped several homeowners going through a divorce sell their home. We have the necessary experience in working with both parties in a fair, unbiased way to achieve the goal of selling the home in a timely manner. We invite you to become a client of Realty Investments of Nevada and experience the difference in the way we provide Real Estate services. Click here to read how “We Do Real Estate Differently.”
We would like to thank Attorney Brian J. Steinberg of Steinberg Law Group for his contributions to this blog. Click here to learn how he can help with your family law situation by scheduling a 30-minute consultation.
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