How a Divorce Affects Your House, Mortgage & Taxes
Of the many emotional and financial challenges with a divorce, dealing with the real estate part of it can be daunting. What are the things homeowners need to know about the house, the mortgage and taxes when facing a Divorce?
- Get some non-emotional trusted advisors around you. If a lawyer is involved sometimes the divorce decree dictates what happens to the real estate. In most cases its straight forward, but you need someone to evaluate:
- The home’s value
- How you hold title
- What will happen with the proceeds when it sells
- The strategy of what happens next, will you buy another home, will you rent, are you moving away, etc.
- The Four Basic Options. You have 4 basic options in the midst of a divorce as it relates to real estate:
- Sell the house and divide up the proceeds per the divorce decree
- Buy out your spouse
- Have your spouse buy you out of the home
- Retain ownership
- The Mortgage. Will get Paid off at closing. There is no need to refinance one or the other spouse out unless the Divorce Decree mandates it.
- Title. Both in Title must AGREE, and must SIGN.
- Taxes No Different.
- $500,000 Profit – no taxes
- If you have lived in the home for 2 out of the last 5 years as your primary residence.
- Questions on that though I would make sure you talk to your tax professional when you sell.
If you want a FREE REPORT – How to Avoid the Costly Mistakes in the Midst of a Divorce?
Visit www.YourHomeSoldDivorce.com or call 719 301 3900.
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