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How to Sell Property During a Divorce

How to Sell Property During a Divorce

Selling Property During a Divorce

Divorce is a challenging process on both an emotional and financial level. Unfortunately, the split of a couple’s assets is the one item that cannot be avoided during a time like this. While some couples may go through this without any issues, many find it impossible to distribute their assets on their own.

Priorities should be given to the kind of property the couple is dividing. When a marriage or partnership dissolves, it is common for a number of different types of property to need to be divided. Among the several property types are:

  • Real estate, such as a vacation home or the family’s primary residence
  • Superannuation or retirement savings
  • Investments
  • money on hand or at a bank
  • Personal effects
  • Cars, motorbikes, boats etc

For the sake of this article, we’ll concentrate on the division of real estate, which includes primary dwellings and/or second homes. There are a few options available if the couple owns the asset jointly when selecting how to sell it. A couple can decide between:

  • Sell the house altogether and divide the proceeds of the sale’s costs.
  • One spouse or partner may propose to purchase the other’s half of the property and take sole ownership.
  • Agree to continue being co-owners of the property and rent it out, utilising the rental income to cover the mortgage and other related expenses. If the couple rents the house for more than it costs to keep it up, they can divide any surplus income between them in line with a written agreement.

The following actions must be taken by the divorcing couple in order to sell real estate:

  • Determine the property’s true value.
  • Check to see if the house may be sold for enough money to pay off the outstanding mortgage.
  • Determine how the profit will be split between the two owners if the property can be sold for more than it will cost to pay down the mortgage.

The third step may be the only one in which actual problems may develop and become challenging to resolve. Several considerations will be taken into account at this point when determining how to divide the cash asset from the sale of the home. Among these elements are:

  • both parties’ financial contributions towards the home’s initial purchase
  • Did one party own the house before the marriage?
  • What were each party’s non-monetary contributions?
  • The parties’ long-term requirements
  • The potential earnings of each party
  • Unpaid debts from the marriage that would need to be settled with proceeds from the sale of the house

It is always preferable if the pair can reach an informal agreement on these matters. The couple may, however, feel that putting the agreement in writing will help safeguard their financial arrangement. The couple’s next course of action is to ask the court for a consent order if they are unable to reach an informal or formal financial agreement on their own. The areas of agreement and dispute between the couple might be presented to the judge for review and decision-making in court. This alternative, meanwhile, is pricy and time-consuming. Therefore, it is always preferable if the couple can reach a written or informal financial arrangement independently.

When the property is finally sold, the proceeds will be distributed in line with the pre-established arrangement, and the couple can then proceed.

While selling real estate and splitting assets during a divorce can be challenging, with careful planning and the aid of specialists with experience in these areas, the process can be made considerably simpler.

How to get a court order to have your ex sell your house

You can obtain a court order to force the sale of the home if your ex-spouse won’t sell it. If you choose this course of action, a judge may order the sale of a house as part of a property settlement. A real estate agent will be chosen to sell the home for that figure as part of the order, which also includes having the property independently evaluated. If the court issues the order, it will often be given to the party who is not impeding the sale and will include a deadline for when the house must be sold.

While selling real estate and splitting assets during a divorce can be challenging, with careful planning and the aid of specialists with experience in these areas, the process can be made considerably simpler.

Please get in touch with one of our family lawyers at Mediations Australia if you need help with this or any other legal matter.

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