Going through a divorce is an ordeal that often impacts the finances of both parties. In some situations, the couple will attempt to settle marital debts by selling assets.
While selling assets presents an easier solution than dividing them, there are some concerns to look out for if you choose to go this route. Here are some tips to keep in mind when selling assets during a divorce.
Confirm the assets
Make sure the market or climate is right for selling assets, or you could experience a loss. By rushing to sell your home, you could lose out on equity if it is not a seller’s market. Consider working out a temporary agreement for keeping certain assets until the timing works out to bring top dollar.
Avoid a heavy loss
There are some situations where a quick sale brings benefits to both parties, but you should avoid selling for too far below the fair market value. It takes work to find the right buyer, and you could think about including a provision in your separation or divorce paperwork about sharing the money after selling the asset. An appraisal can help you know what fair market value is.
Never sell without prior approval
Even if you find the right buyer or can make a quick sale, always get the other spouse’s approval. Sell only what you both agree can go and agree on how to sell it. This can reduce the chance of negative backlash and emotions that will complicate your divorce.
The only marital assets you need to sell are generally those jointly owned. If you can work out the situations easily without selling, it could help you keep your financial interests.