Can I sell my house before divorce?
The decision to sell your home during a divorce is common. However, many people have misconceptions about whether you can sell a house before or during the divorce. Some believe you have to sell the house before the divorce is finalized, while others prefer to wait until after the divorce. Legally, you can sell your house before or after divorce.
Sell your house before the divorce
Some financial planners and divorce lawyers recommend that you sell your house before divorce. There are many reasons to sell a house before a divorce, but most of them are financial. When you sell your home before divorce, you know exactly how much the house is worth and can evenly divide property. If you wait until after the divorce, the solution can be complicated and there is a possibility that one party does not act in good faith.
Reach an acceptable agreement on the house
If you decide to divorce before selling the house, write an agreement to remove the house of the agreement of divorce. In some cases, one party can buy out the property of the other spouse, leaving a party with full ownership and the other part with according economical. If you do not have the means to make the purchase, it is possible to structure a deal for you and your spouse the proceeds from the sale of the home are dealt, once it has been sold. Just make sure that you have a deal in writing to dispose of the property .
Tax implications of selling and divorce
When you divorce, selling a house has tax consequences. If you and your husband have owned the house and lived there for at least two of the last five years, are eligible to exclude up to $ 250,000 of the proceeds from the sale of your home. If you are married and file a joint return, you can exclude up to $ 500,000 of capital gains from the sale of the house. Decide what is most advantageous tax situation for you and your spouse, if you sell the house and if they divorce at the same time.
Keep the house for years and then sell
If you decide not to sell the house during the divorce, you or your spouse can live in the house or keep it for several years after the divorce. If a party will retain ownership of the house, you must include it in the terms of the agreement of divorce, either through the purchase of a spouse or through an agreement to split revenue when the home is sold. For tax purposes, if you keep a house as a property jointly with your spouse after a few years and sell it, you can claim an exclusion of only $ 250,000 of the proceeds from the sale of the house.