How a Divorce Affects Your House, Mortgage & Taxes

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?

 

  1. 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.

  1. 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

 

  1. 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.

  1. Title. Both in Title must AGREE, and must SIGN.

 

 

  1. 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 REPORTHow to Avoid the Costly Mistakes in the Midst of a Divorce? 

Visit www.YourHomeSoldDivorce.com or call 719 301 3900.

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Barb Schlinker, Listing Agent

5 STAR REVIEWS
719-301-1802