Divorcing: Treat a Home Sale as a Business Decision

A solid way to handle the sale of the home in a divorce is in a businesslike manner. Because the marital home is usually the greatest asset in a marriage, it is also the greatest liability. You must give a lot of serious thought to securing settlement terms that protect both parties, especially the spouse who is departing the home. When you enter into your marital settlement agreement, your lawyer should specify who is financially responsible for the mortgage, the homeowners insurance, utilities, and upkeep of the marital home.

If the spouse occupying the marital home is responsible for listing, showing, and selling the home, the other spouse may be obligated to pay part or all of the mortgage, as well as contribute to the upkeep of the home. If the occupying spouse shows little effort in getting the house sold, the marital agreement should provide a timetable for the sale of the home. It is important for the marital agreement to include provisions outlining the steps to be taken if the house cannot be sold within a specified time or if one spouse fails to meet any financial obligations.

Additional expenses* may include preparing the house for the market by updating, upgrading, repairing or enhancing the home.  There should be clear direction on who will oversee improvements, as well as who will pay for them.

Quick decisions can be damaging, especially when it comes to co-ownership or one spouse occupying the home until it sells. By keeping emotions at bay while making important decisions and focusing on what needs to be done to sell your home, you and your ex-spouse can move on faster.

* Coldwell Banker Realty offers The RealVitalize©  program – an exclusive offering for Coldwell Banker Realty clients, helping with home improvements and repairs to prep a home for sale. This is especially helpful to divorcing couples who may be struggling with pre-sale costs or are not in agreement about who will pay for repairs and preparation costs before a home goes on the market. Coldwell Banker covers your upfront costs and gets paid back when your home sells. There are no hidden fees, interest charges or markups.

**Always consult your legal adviser for contingencies that are specific to your situation.

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