Your home is likely the biggest marital asset you and your spouse own together. As such, it will likely pose the biggest challenge when it comes time to sell it, especially if an impending divorce is the event that triggers your decision.
Of the many logistics of the sale you will have to figure out, one is when to sell. Should you sell the home before you file for divorce or afterward? HomeLight explores the pros and cons of selling a house before divorce.
Benefits of selling before divorce
There are several advantages to selling your home before you file for divorce. For starters, by doing so, you can start the divorce process off with a relatively clean slate, meaning without a mortgage hanging over your head and all the other expenses that come with maintaining a home. You can also let go of the physical and emotional ties that come with a family home, cash in on your home’s equity to start your new life, and help you avoid future capital gains taxes. Most enticingly for most divorcing couples, selling before divorce can help you avoid one of the biggest property division hurdles you would likely face during the process.
Drawbacks of selling before divorce
There are a few pitfalls to selling your home before you finalize your divorce or during the process. For instance, the sale may interfere with your divorce and thereby delay the process. If your spouse is uncooperative, he or she may use the home as a pawn during settlement negotiations. You also run the risk of destabilizing your family even more, as well as of being tempted to accept lowball offers.
If you and your spouse own a home together, you have several things to consider before you follow through with a divorce, such as when to sell. Weigh the pros and cons before you decide to ensure you make the best decision for your finances and future.