Call Today for a FREE Consultation:
630-480-6253

Call Today for a FREE Consultation: 630-480-6253

Defending What Matters Most

  1. Home
  2.  » 
  3. Divorce
  4.  » Why selling your home before you divorce could prove beneficial

Why selling your home before you divorce could prove beneficial

| Apr 7, 2021 | Divorce |

If you are about to divorce, you need to decide what to do with your home. Who gets the family home can become one of the significant points of contention.

 

Your financial situation may mean you have to sell a home you want to keep

 

What if you want to keep your home? You might have spent years making improvements and tending to your garden. You could be great friends with the others in your street. Buying your spouse out may be an option if you have the funds. Or you may be able to trade it against other assets when dividing your property. If you cannot afford to keep the property, selling it may be the only option.

 

Market prices may influence your decision to sell

 

Now might not be the right time to sell your property if prices have dropped. It may make financial sense to wait, but it could complicate matters.

 

Delaying selling keeps you tied to your spouse

 

A clean break is often best thing for both parties when divorcing. If you continue to own a house together, then you still need to deal with each other.

 

There may be tax advantages to selling before you divorce

 

As a married couple, you can get a $500,000 break from capital gains tax when selling your home. Providing it has been your primary residence for two or more years during the last five. If you wait till after you divorce, and one person takes the house then sells it, the tax break will be half as much at $250,000.

 

To find the right solution, you need to set your emotions aside and consider all aspects of the debate.

 

Archives

DCBA
Badge Lead