There are No Winners in a Divorce
Let’s face it; divorce is a challenging journey, and there are no real winners. However, it doesn’t mean that equitable solutions can’t be found to meet everyone’s needs. In many divorces, the question of how to deal with real property arises. While attorneys and mediators handle the division of assets, a qualified Realtor® who has walked in your shoes can be the key to swiftly selling your home and ensuring you have a place to call home when the dust settles.
I’ve personally navigated the challenging path of divorce and have assisted numerous other couples in similar situations. I understand that there are many moving parts, and not all real estate agents are created equal when it comes to ensuring the best options for all parties.
Read on below for some essential considerations, and please don’t hesitate to reach out if you have questions. I’m here to be YOUR advocate. I firmly believe that all parties are entitled to fair treatment. My goal is to use my experience, empathy, and expertise to guide you to the best possible outcome during this challenging time.
Things to Consider
Sell the House: Considering Your Options
When it comes to divorce, selling the house is a strategic choice. It offers a clean break and a path to long-term emotional relief. Here are the reasons why this option may be the right one for you:
- Debt Resolution: The proceeds from the sale can be used to pay off the jointly held mortgage debt, allowing both parties to move forward independently.
- Benefits of Selling: While it might not seem like the most amicable choice during a heated divorce, consider the benefits. Starting a future clean and free of emotional baggage is invaluable.
- Future Considerations: Think about how someone new entering your life would feel about a property you shared with someone else. (Ask me how I know!)
- Market Considerations: Selling may not always be the best option, especially in a market with limited inventory and increasing housing prices. For families with children, maintaining consistency in their familiar environment, including friends, social life, and local schooling, is crucial. A Realtor familiar with the local market conditions can help you navigate these challenges, not just by identifying listed properties but also unlisted gems.
- Court-Ordered Sales: In some cases, a judge may order the property to be sold as part of the property division. In such instances, it becomes even more vital to have a professional Realtor by your side. They can work to maximize the equity realized from the sale, regardless of which side of the divorce you are on. While accepting a cash offer from an iBuyer may be a quick exit, it’s important to remember that their focus is not on maximizing your sale price but on the home’s resale value after they take title.
Perform a Buyout
Just like the title says, this generally means that one partner buys out the other person’s share of the property. Typically, this means providing half of the Fair Market Value of the property, but this doesn’t mean the exclusion of other creative approaches to what a buyout looks like.
Why think about something other than Fair Market Value (FMV) for the buyout? Well, if there are children involved who will remain in the home after the divorce and there will be long-term involvement in their lives, you may want to consider the emotional impact of being backed into a financial corner by performing a buyout at FMV. Divorces can be highly charged enough, and this approach assumes that whoever is doing the buying out will have the finances to move on with their lives after the divorce.
Perform a Deferred Sale
If there are kids involved, there may be an agreement to have the spouse with primary custody stay in the home until the children reach a certain age or graduate from the local school. At that time, the house can be sold, and equity split per the divorce decree. The issue with this is that the spouse who is not living in the primary home may still be on the note. This can create issues for the spouse to obtain a loan for a new property.
While this particular issue is outside the realm of a real estate agent, an experienced agent will have a list of lenders that might be able to help. If you find yourself in this situation, ask your Realtor (a.k.a. Me!) how they can help connect you to the right lending source(s).
In Summary
During a divorce, having an experienced real estate agent on your side is crucial. They can help both parties navigate the process and move forward smoothly.
A professional, experienced agent can:
- ✅ Prepare the home for sale
- ✅ Handle negotiations and maximize returns
- ✅ Prevent divorce-related disagreements from affecting the sale
- ✅ Act as a neutral third party
- ✅ Keep sensitive information confidential
If you’re going through a property division, I understand the challenges firsthand and have the expertise to ensure fairness for all involved.
