Selling a House During Separation: What You Need to Know | EstateAgentPower.Com

Understand the Property Division Law

Understanding the property division law is the first important consideration when selling your house during the divorce. The community property laws and equitable distribution laws are the two common property division laws that dictate how a couple would split the proceeds of a house sale. Under the community property law, the sale amount will be distributed equally between the couple. On the other hand, in regions where equitable property law is followed, a property will be divided fairly between the couple.

Under equitable distribution, the property is divided between the divorcing couple after careful consideration of several factors like the length of the marriage, the contribution of each partner in house purchase, earnings of each partner, and ownership of a house.          

Mutual Agreement On Selling the House

It is important to communicate openly with your partner and draft a mutual agreement regarding the property sale. Your partner should agree on essential elements important to sell a house smoothly, such as selling price, listing of property, timing of selling, division of proceeds, and mortgage payment. To avoid any dispute you can consider drafting an agreement to sell mentioning all important points.          

Paying a Mortgage

Another important consideration for a couple selling their home during separation is to decide on mortgage payments. You must mention guidelines regarding mortgage repayment in your separation agreement or divorce settlement.  A couple may choose to pay out the entire amount owed using the sale price of the house or they may choose to split the mortgage and pay it off equally before selling a house.           

Handling the Sale Process

To sell a house smoothly during separation, it is important to handle the sale process with a mutual agreement. Both partners should mutually choose a platform to list the property, market it effectively and accept offers that seem acceptable to both partners. Understanding the selling costs like marketing expenses, legal fees, taxes, and others is also essential when selling a house. You can jointly hire a solicitor to handle the legalities associated with the house sale and avail help regarding the title transfer.          

Divide the Proceeds

After accepting and closing the deal, it is time to divide the proceeds according to the agreed terms. Divide the sale amount after paying all your dues like mortgage, real estate taxes, and selling expenses. You can seek help from a legal expert to divide the proceeds as per the property division law.