No matter how amicable the divorce, the reality of dividing and liquidating assets – especially large ones like homes – is never easy. Help your clients in this trying time, with real estate selling tips that help them better understand their options.
Typical options for divorcing sellers include…
- Sell and share
Selling the home and sharing the proceeds often offers an agreeable solution, provided the agent involved is in-the-know, not just on the real value of the home, but the goals of the clients (i.e. out fast at a lesser price, or willing to wait for true market).
- Spouse buyout
If one spouse wants to remain in the home, a common solution is for the remaining spouse to refinance the home to pay off the current mortgage, giving the spouse an agreed upon amount.
- Spouse stays to raise kids until predetermined date
Letting one spouse to remain until the kids complete high school may work for some, however capital gains tax issues can make this situation tricky and tough on the departing spouse. Consult the divorce attorney about the possibility of a clause in the divorce agreement for the vacating spouse to keep the home as a “primary residence for tax purposes.”
- Other extenuating circumstances…
- Rental properties
Couples who own rental properties should strategize different scenarios with a tax advisor and attorney to protect their financial health.
- Vacation homes
Vacation homes can also be complicated due to capital gains. Professional help is also advised here to avoid complications.
- Rental properties
Uncle Sam’s hand
Regardless of the option sellers choose following divorce, it’s always advisable to consult with a tax advisor, lawyer, or accountant prior to taking the final step. This ensures sellers understand the complete tax implications of their choice, which cannot be avoided.
Glass looking half full? Brighten up someone’s day with the help of real estate selling tips from PropertiesOnline.