Real Estate in Divorce: Selling a Marital House
Selling a marital home can be a difficult decision, especially for spouses with children or those
who purchased it as their “forever home.”
However, selling the house may give both spouses much needed closure and greater financial resources to start anew.
As realtors, we understand that our role is to do what’s best for each of the spouses and the property, while maintaining strict compliance to specific orders regarding the house and the homeowners listed on the title. As a result of our experience, we have been written into divorce decrees as the agent of record to sell the marital home.
Maximizing the Value of the House:
We look for evidence of distress to the home and opportunities for improvement to the home in order to maximize the sales price of the home. We understand our clients may not have an appetite for making improvements, and understand our role is to provide the information so the parties involved can make the best choice for them. We understand good communication helps establish trust and neutrality.
Creating Balanced Solutions:
Having a husband / wife realtor team allows us to meets with the parties separately to avoid having too much communication with one client to make it look like we are taking sides. We understand one spouse may be anxious to sell the house, while the other is still grieving the loss of both their house and their marriage, and we work with both parties to provide balanced solutions.
Communicating with the Attorneys:
We understand and appreciate proactive communication with the attorneys is critical. We update lawyers regularly, including when the listing agreement has been signed, once the house is on the market, when the sale is in escrow, and when the sellers are ready to close.
Avoiding Landmines:
We make sure the title will respect a Power of Attorney in the event the client is unavailable for the closing. A mortgage payoff is ordered early to ensure we are aware of any changes that might have occurred with the monthly payment process. We look for orders such as a right of first refusal, where one spouse wants to buy out the other. This can affect the basic rules and regulations of real estate sales and we address that up front with both parties. This often requires the purchaser to acquire a new mortgage, liquidate savings or both, and we identify that need early in the discussions. Finally, reverse mortgages can be used with buyers over the age of 62 as a tool in divorce when one person wants to stay in the house or to help a buyer when they want to move into a new house.
Considering Tax Laws:
Speaking with your accountant is vitality important to understand the tax ramifications associated with selling a martial home. For example, if a buyout happens as part of a divorce, the selling spouse may not need to pay taxes on the money that they receive under a tax exemption for divorcing couples.
Living our Values - Client Focused and Performance Driven:
We understand selling a marital home can be complicated for our clients. For Vikki and I, lead realtors of the Hospitality Network Group at Keller Williams, helping families rebuild allows us to live our values of client focus and performance driven.
