You must be dealing with a lot if you’re currently going through a divorce. One of the questions that will keep coming to your mind is if you should sell house before or after divorce. It is not an easy question, but you will have to face it one way or the other. You will have to make a decision.
Sell House Before or After Divorce
Luckily you found this post first. It will address the issues of selling or not selling your house during or after a divorce. It will also explore the various pros and cons of each choice. At the end of it, you will make up your mind to do the right thing under the circumstances.
Choosing to Sell Before the Divorce
Your money advisor and attorney will be rooting for you to make the sale before the divorce. However, it is not always a great decision. Let see the ups and downs of taking this path.
- Moving on from your past: keeping the home for long will be a reminder of your failed marriage. You will be attached to your past if you keep the house. Selling it gives you closure, and you can begin a new chapter of your life.
- Dividing the value of your house immediately. If you keep the house, you can only guess its value and what your claim is. When you sell, you have cash in hand, and you can split it in two ways. You get your half, your wife the other and everyone moves on.
- Gain from written off tax. When you sell your house before concluding your divorce, you get a tax write off of half a million US Dollars. When you sell after, you only get a quarter-million US Dollars as a tax write off. The decision is easy since you would like to get more from the sale.
Selling When the Divorce is Complete
If you decide to wait for the dust to settle down, here is what you should expect;
- Have time to deal with one problem at a time. Waiting for your divorce to conclude before floating your house into the market means one less problem to worry about. If both of you can agree, then it will be a smooth ride.
- You will sleep on your bed. With your home intact during the divorce, you will have a place to live. You will not disturb your friends or relatives looking for a place to sleep.
- Property appreciates over time. The longer you keep the house, the higher the chances of selling it for more. You will probably sell it for more than you would a few months ago. You may not keep all the profit, but you will get more. This idea might work out if you’re in the process of building your home or looking for the materials to do so.
So, do you sell house before or after divorce? The decision is in your hands. You know the pros and cons of each path. Go for what is logical for you at the moment. Let the choice be yours and your spouse’s when it comes to selling your home.