It is never easy to get a divorce since there are so many emotional and financial issues that need to be handled. The house is probably one of the toughest decisions that a couple has to make during this painful process. With emotions running high, it is very important that you get an expert to answer all your questions about taxes, mortgage, and other important decisions. A professional can help you make logical decisions and prevent you from making emotional decisions.
Perhaps the most difficult and the foremost decision that you would want to make is whether you want to continue staying in the house. This will, of course, depend on whether you would feel comfortable living in the place or if it would bring up painful memories for you. You will have to choose between staying in the same house and moving onto a new place.
These are questions that only you can decide but you cannot deny the fact that your decision will have a financial impact. Can you afford to keep the house or will you need to refinance it? Is selling the present house and buying a new one a better idea and how much money do you have for buying a home?
This article will help make a lot of things clear for you so that you can make a good decision and one that you will not regret later. While dealing with the house during a divorce proceeding, there are basically four options that you have. These are the four options and their financial implications:
• The house can be sold and the money divided between the two partners. Here, it is important that you get as high a selling price as possible. You need to clearly understand how much of the money will you be receiving. Note that there are selling and other expenses that will need to be considered while figuring out the amount received. It is also possible that the split may not be a 50% split. It will actually depend on your divorce settlement, the person who paid the original down payment and the property laws of the state you live in.
• You can buy the house by paying off your spouse or partner. You can keep the house to yourself this way but before making a decision like this make sure that you know that you can afford to take care of the monthly payments. Another factor that will need to be considered is that if both of you took a loan for the house, then you will need to refinance it and this could be a difficult process.
• If your spouse/partner is interested, you can ask your spouse to buy you out also. You may want to leave and make a fresh start in a new place and you will need some money to do this. However, you need to remember one thing, if your mortgage is not refinanced, banks will consider you as a co-signer to the property and you are as liable for the payments. This means that if you want a new mortgage, this liability will make it difficult for you to get it. This is despite the fact that you don't legally own the house.
• You can also continue to own the house jointly with your spouse. This option is quite possible even though only one spouse is living there. You can postpone this financial decision for a while which means that you will have some peace of mind for a while, however, there are tax implications that you will need to consider because these may change from the time that your divorce proceedings are settled to the time that the final sale is actually made.
If both of you have decided to sell the house, you need someone who can guide you in such a way so as to maximize your return. The help of a professional can come in very handy at this time. Always keep in mind that both of you need to be present when the listing contract is being prepared. Both the parties need to sign it and both should be present during the negotiations.
If you want to buy a new home, you can use the money that your spouse pays you while buying it out or from your part of the money coming from the sale proceeds. Make sure that you are very clear about the kind of house that you want to buy for your self. An expert realtor can help you a great deal by finding a house that matches your budget and other requirements.
I specialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.
I have over 25 years experience in the real estate industry. As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele. If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems. I would appreciate the opportunity to earn your business. I am experienced in listing and selling short sales. For information on the short sale process, please visit www.LoudounShortSaleSolutions.com.
My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors, Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors. I am a member of the Top 5 in Real Estate Network.
I have lived in Loudoun County since 1979. I am married with two grown children and two grandchildren. My son in law is my business partner in real estate. I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.
Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William Counties. Our local neighborhoods include Leesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont. Cell 703.727.9885 Office 703.574.3800 www.facebook.com/LoudounCountyConnect www.twitter.com/ExitAshburn www.Linkedin.com/in/HelenaTalbot
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