Navigating Selling House During Divorce in Phoenix: Key Considerations
Selling house during divorce in Phoenix isn’t something most couples anticipate when they first buy a home together. However, divorce is more common than you think, so it can be a reality for many people. If you’re currently working through a separation and a subsequent house sale, there can be a lot to organize. When it comes to selling house during divorce in Phoenix, before phoning your local realtor, you’ll want to think about the following things.
1. Selling Quickly vs. Selling for More Money
Selling house during divorce can be emotionally and logistically challenging, especially when relationships end on difficult terms. The last thing many couples want in such a situation is to be stuck living in a marital home with their ex-spouse while they wait several weeks for their house to sell.
Sometimes, it can be worth discussing with your spouse whether they’d prefer to sell quickly or wait for a buyer with the best offer to come along. When you sell to professional buyers, you can receive a fast, fair offer that generally allows you to part ways with cash in hand in a matter of days rather than weeks or months—making selling house during divorce in Phoenix a smoother, more efficient process.
2. Capital Gains Tax
Capital gains tax describes tax on profits earned from the sale of an asset, such as your family home. If you purchased your property at the lower end of the market and decided to sell at its peak, you might be able to make a tidy profit to share between both spouses.
However, if that profit exceeds $500,000, you might be required to pay federal capital gains taxes, which can be up to 20%, depending on your tax bracket.
3. How You’ll Sell
There are at least three standard property sales methods to consider when selling a house during divorce proceedings. One common option is selling through a realtor, which can take several weeks and cost several thousand dollars in commission.
Alternatively, you might choose to sell the house privately by advertising it yourself. This method allows you to retain the commission savings, but it can be time-consuming especially when your schedule is already packed with divorce paperwork.
A third option for selling house during divorce is working with a professional buyer. These buyers typically handle the entire sales process, allowing you and your ex-spouse to focus on dividing belongings and planning your next steps.
Navigating home sales during a divorce can be a complex and emotionally charged process. Here are some additional considerations to help you through this challenging time:
Legal Considerations
Before you start the process of selling your home, it’s essential to understand the legal implications. Consult with a family law attorney to ensure that you are aware of your rights and obligations. They can help you navigate the division of assets and ensure that the sale is handled fairly and legally.
Communication with Your Ex-Spouse
Open and honest communication with your ex-spouse is crucial during this process. Try to keep the lines of communication open and work together to make decisions that are in the best interest of both parties. This can help reduce tension and make the process smoother.
Timing the Sale
Timing can play a significant role in how quickly and for how much you sell your home. Consider the current real estate market conditions and try to time the sale when the market is favorable. This can help you get a better price for your home and reduce the time it takes to sell.
Preparing the Home for Sale
Take the time to prepare your home for sale. This includes making any necessary repairs, cleaning, and staging the home to make it more appealing to potential buyers. A well-presented home can attract more buyers and help you sell faster.
Financial Implications
Selling a home during a divorce can have significant financial implications. Be sure to consider all the costs associated with selling, including real estate agent fees, closing costs, and any potential capital gains taxes. It’s also important to consider how the proceeds from the sale will be divided between you and your ex-spouse.
Emotional Support
Going through a divorce and selling a home can be emotionally draining. Don’t hesitate to seek support from friends, family, or a professional counselor. Having a support system in place can help you cope with the stress and emotions that come with this process.
Alternative Solutions
In some cases, selling the home may not be the best option. Consider alternative solutions such as one spouse buying out the other’s share of the home, or renting the home out until the market improves. These options can provide more flexibility and potentially better financial outcomes.
Understanding the Market
Having a good understanding of the local real estate market can help you make informed decisions. Research recent sales in your area, and consider getting a professional appraisal to determine the current value of your home. This information can help you set a realistic asking price and attract serious buyers.
Working with Professionals
Working with experienced professionals can make the process of selling your home during a divorce much easier. This includes real estate agents, attorneys, and financial advisors. They can provide valuable guidance and support, helping you navigate the complexities of the sale.
Keeping Records
Keep detailed records of all transactions and communications related to the sale of your home. This includes contracts, receipts, and correspondence with your ex-spouse and professionals involved in the sale. Having thorough documentation can help protect your interests and ensure a smooth process.
What You’ll Do Next
A divorce can change your entire way of life. In a matter of days, you can go from living in a comfortable marital home to needing to find somewhere to live by yourself. It doesn’t hurt to think about what you’ll do next as you start the house-selling process.
Some people take their half of the house sale and use it as a deposit on another home, while others choose to rent until they find a new sense of normalcy. There’s no right or wrong answer, but it can be a worthwhile consideration before that ‘for sale’ sign goes up.
Once the sale is complete, it’s important to focus on moving forward with your life. Take the time to find a new place to live that meets your needs and allows you to start fresh. This can be an opportunity to create a new beginning and build a positive future.
By considering these additional factors and working with the right professionals, you can navigate the process of selling your home during a divorce more smoothly. Remember to take care of yourself and seek support when needed. This challenging time can also be an opportunity for growth and new beginnings.
Going through a divorce can be a challenging and stressful life event, particularly when you have to sell your family home. Let OAK Street Properties make the process easier by offering a fast, straightforward, and private sales process. Contact us today to receive your fair cash offer.