HOW TO AVOID COSTLY ERRORS RELATING TO THE HOUSE Due to a DIVORCE?
With divorce comes the weight of emotional difficulties and important financial decisions that need to be managed properly. One of the most important is the one relating to the house.
Our real estate team has much experience dealing with such situations. They are discrete and professional and will ensure that both parties in the divorce are well informed and guided throughout the process. We have a team of professionals that can also assist us in the process as needed. We can ease the tension of the difficult situation
It is important to understand the financial impact of each of these scenarios and which one may be best for your situation.
Sell the house and share the profits
Your main interest in this option is to maximize the selling price of the property. We can help you avoid the errors which owners often make in your situation, and which compromise the expected results. While you are trying to put some order in your situation, make sure you set the net profit you expect to earn. After the expenses related to the sale and after establishing how profits will be divided, what will be left? The division of profits might not be equal because the judgement of divorce might have set a different arrangement or the cash deposit was different or because the laws in effect related to family patrimony would influence the process.
Buy the portion of your spouse
If you have the intention of keeping the house, you will have to determine how you will honour your monthly obligations with one income. If you qualified for the mortgage with two incomes, it might be difficult to refinance with only your income.
Sell your portion to your spouse
If you leave, you can start over with some cash in your pocket. However, you have to know that the existing mortgage loan is still in effect and you will remain, with your spouse, because you both signed for the loan, jointly responsible. This responsibility towards the prior loan can prevent you from obtaining a mortgage if you buy another house even if in fact you are not legally the owner of the first house anymore.
Remain an owner
Some divorced couples will postpone the decision of the sale of the house for a certain time even if one of the spouses continues to live in the house. This situation will give you some breathing room and take away some worries, but requires vigilance given tax rules. Keep in mind that at the date of the sale, your situation relating to your income tax return might have changed.
When you decide to sell
If you and your spouse decide to sell the house, make sure you obtain the services of professionals to get the most from this important asset. Your differences must be put aside and you should get involved in the brokerage contract.