Should We Sell the House?

In most every divorce, one party or the other, if not both, are faced with difficult decisions, financial difficulties, and challenging times. The decision to sell the family home may be one of those very had decisions. If you have done the math and know it is a good decision but are still struggling with the emotional side of it, these tips may help.

The Numbers Do Not Lie

You, and your soon-to-be-ex, may need the funds to start over and build two households out of one. There will soon be two houses that must be furnished and maintained, but no longer two incomes to share. Despite the emotional ties and the difficulty of letting go, selling the house might be the silver lining for your new start. Making a fresh start in a house full of memories could leave you feeling lonely and empty.

You Have Decided to Sell…What Next?

The next step is to determine the value of the home. Many factors will affect the value of your home including location, condition, size of the home, size of the lot, the neighborhood, etc. A local, experienced real estate agent, with an understanding of the market, will be worth their weight in gold. You will start the process by getting a current appraisal. A realtor can quickly pull comparable values to guide the pricing and help you through the process. It would not be advisable in a divorce situation to attempt to sell your home as a For Sale by Owner.

Getting Ready to Sell

A lot of time and work may be necessary to get your home into tip-top ready-for-sale shape. If you do not have the time, but do have the funds, hire some of the fix-up work done. Plan on a deep cleaning of everything–top to bottom. Remove any junk laying around the yard including dog poop! How about a new coat of paint–inside and out. You’d be surprised how significantly that may increase the value of the home. Maybe consider updating the kitchen…or how about a landscaping face-lift. Whichever party is staying in the house until it is sold must be willing to keep the house clean and show ready.

Sale Price

You and your ex will need to agree on a listing price. Do not wait until you have offers on the table to have this discussion. What is the lowest you both are willing to accept? It would be wise to have these terms agreed to in advance of listing the house.

Show Me the Money

Since Washington State is a community property state, the proceeds of the house will need to be equitably split. That split can be agreed to by the parties or ordered by a judge. Just because the house was jointly owned, does not mean the split will be 50-50. An equitable split may be 60-40, or even 80-20. Every case is different and will depend on the circumstances of the case. Keep in mind other assets may be on the table for trade–in other words, one party may take a 401k, while the other is awarded assets from the sale of the house. Each situation is unique. Given the value of the home, equity, debts, and the situation of the parties, it may be a good idea to consult a tax attorney, especially if there may be capital gains to account for.

Whether you decide to keep the house or not, I am here to help you through the legal steps and support you through the process. Please contact me at: [email protected].

Disclaimer: The information presented here is for general informational purposes and does not constitute legal advice.