January 08, 2019
Should You Sell or Keep The House During a Divorce? Everything You Will Need to Know
Selling House |
A divorce is a very difficult time for anyone. When a married couple goes through the divorce process, issues like property, marital house can be one of the most difficult issues.
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It is no doubt the most stressful thing as part of a divorce, after all, it's just not a property its memories, emotions, happiness, and part of your life. It was "HOME".
We have a few options regarding the house.
Why Do Some Couples Choose To Sell?
There could be a few reasons.
Neither one wants to live in the house anymore.
Maybe they are moving in with someone else or maybe they want to avoid having any connection with this relationship and move on. Living in the same house can make it difficult.
Neither one is able to buy out the other.
For a new start, they will need funds. funds gained by selling the house can provide a solid foundation for a new beginning.
Selling the house can provide a clean break from the relationship emotionally, legally and financially.
One person might not be able to afford the house on their own after all.
Can I be forced to sell my house in a divorce?
Can you be forced to sell your home in a divorce depends on a few factors.
For a cell to occur the consent of all the owners is required. For a sale to occur, all you need to establish the status of the ownership.
Your house might be owned in one of two ways: A joint ownership or owned solely by one of you.
There are more things attached to this. The rights
Your name not being on the mortgage or the deed documents does not necessarily mean that you do not have any rights or claims to the property.
The matrimonial home is categorized as a joint asset under the UK law and you cannot be forced simply to leave by your partner. In this case, if your name is not on the mortgage or deed, you will need to contact land registry to register you matrimonial rights which would stop to your partner selling the house without your consent.
To put it simply: you have the legal right of occupation as long as the marriage holds legally even if the house is not in your name. This is called the legal right of occupation.
How to prepare your house for sale?
Before you go down the sale path you have to consider the options you may have and responsibilities you may incur.
Does your house need any maintenance which can improve the price?
Do you have enough time and resources on your hand to carry out the maintenance?
Is it better to sell as it is?
Who will be responsible for sale and related issues like viewings?
What are each other's priorities? It is always better to discuss and settle the issues which you can, between yourself instead of involving the expensive solicitors and courts. But always consult your solicitor before a Final Decision is made.
It also helps if you can hire the services of the same real estate agent. Though, not a legal expert, they still have a thorough understanding and experience and can provide you with good very good advice and can help you achieve your goals if those are similar.
Working along always helps then working against. Another benefit of sharing real estate agent can be that they can act as a mediator at times, and an evidence if one of the party gets off the track. They can also help you avoid arguments in the future between yourself.
So sit down and talk. It would save you a lot of hassle in the future path in terms of time and money.
Should you sell your house before a divorce?
Following these two are the most common reason for selling property before a divorce settlement.
Selling the house before a divorce can provide both you and your partner with a solid amount of money. The life normally at this stage is already in the sinkhole. You both probably need a new start. Having money can provide a strong financial base for your future and current plans. At least not worrying about the money can help you focus on other things. Things can get even nastier after the divorce. During the divorce, you still have a connection. After that, it could become difficult to negotiate for an equal share of the proceeds.
Another compelling reason can be cutting the ties off. Sometimes it helps to completely break all connections and move on with your new life. Having strings attached in the form of children and house can cause problems. If you sell your house before the divorce it will help you permanently move away from your old life
Should you sell your house after a divorce?
Selling property after a divorce settlement can have a few benifits as well.
The divorce process is a difficult one and can take very long. So is selling the house. Selling a house is not like selling a car or a bike.
Taking your time can help:
- You win a better price.
- You will be able to review more options
- You will also be able to test the market
Most importantly, your house would normally appreciate in price. So if the divorce takes two years to implement, and archives 10% appreciation over a year on year basis, this can add around 20 to 25% into the value of the house.
And as I just mentioned, buying or selling a house is not a piece of cake. While you are going through the stressful process of the divorce both emotionally and financially it might be a better idea to leave one of your problems for the future, when you are done with the current ones.
During stressful turn off the divorce, it can help if you still have a roof over your head and your usual place to take rest. Selling your house can put you in a state of moving one place to another into the temporary accommodation.
Who has a better chance of getting the house after divorce?
The best thing to do is that you and your partner collectively reach your own divorce agreement and divide all the assets including your house. And as we know this is not always the case, if the matter reaches the court, the parent with the custody of the miners will probably have the right to stay in the marital home. This is always the very first consideration due to the well-being of children. The key being, the house qualifying as marital property.
However, the court will also look into other factors:
- The financial circumstances of both partners
- The financial contribution made into the property
- The mental health of both partners
- The source of funding for the future
- Any misconduct by any of the partners
- The skill set and the employment status of the partners
- The value of the house
Ownership vs occupational rights
In many cases, the ownership might remain with one partner but the residential or occupational rights might be awarded to the other partner. In this case, the financial rights are won by the one partner who wins the ownership while the other still gets to maintain the house as the marital home for themselves and the children.
In this case, for example, if the court awards occupational rights to one partner until the youngest child moves out, it could have an effect on the value of the property. Meaning, not available for sale for a long period of time.
Proceeds From The Sale Of The House After Divorce
The way expenses and the profits are calculated after the sale of the home can vary depending on several factors.
What if one of the partners had been contributing more towards the mortgage or maintenance?
What if both parties have more assets between them and one decides to keep some other, instead of the house?
There would always be a balance so everyone gets the right share.
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