It’s no secret that going through a divorce is one of the most mentally taxing experiences a person can go through. Unfortunately, these things happen, but it doesn’t have to be all bad. For example, if you can sell your home for a fair price before filing for a divorce, it may make the divorce proceedings go smoother. Of course many file divorce paperwork before selling, but this can complicate the home-selling process.
If you’ve thought “I need to sell my house fast” because of a divorce, you should be aware of the pros and cons associated with selling before the divorce. These are discussed in the sections below.
Pros Of Selling Your House Before Filing For Divorce
1. Tax Benefits
In many states, if you choose to sell the house before filing for divorce, you can deduct up to $500,000, but this figure drops to $250,000 if you sell after the divorce. However, this only applies if you and your spouse have lived in the property for at least two years.
2. Easier To Reach Fair Selling Terms
Selling your home before the divorce will make sharing the proceeds easier. If you do this before divorce lawyers are brought in, there’s a good shot you both can walk away with a fair amount of cash.
3. Ensures A Steady Transition Into Post-Divorce Life
Selling before a divorce ensures you have some money to start your new life. You can use the proceeds you get to pay debts and find a new place to live.
4. Ensures Peace Of Mind
Even if you despise the thought of your ex-partner right now, there’s no denying you shared special moments. If you sell the house you shared before divorcing, you have a better chance of wiping the slate clean so you can both move on with your lives as soon as possible. And if there are kids involved, you first and foremost have to consider what’s best for them.
Cons Of Selling Your House Before A Divorce
1. No Secure Residence
Finding a new home to live in while going through a divorce can be tough. Moreover, you may not want to establish a temporary residence while finalizing all legal matters. Plus, you’ll need a secure residence if you have kids.
2. Miss Out On Rising Property Prices
Since property values tend to rise, you may come to the decision that it’s better to hold onto the asset. Maybe it’ll fetch a higher price months later when divorce proceedings are underway.
Final Thoughts
Even though it’s clear the pros outnumber the cons, you need to decide for yourself what’s best for your situation. After all, it’s likely your home is your most valuable asset. Therefore, deciding whether or not to sell your house before a divorce can be challenging.
If you’re going through a divorce, Cash 4 Homes can help. We’ll provide an easy selling solution that’ll put cash in your pockets quickly. We buy houses in Southern California in any condition, and we can close in under 4 weeks.