fbpx
Select Page

Should We Sell Our Home Before or After Our Divorce?

by | May 19, 2020 | marital property, News and Events

If you are considering divorce and you and your spouse own a home together, you’ll need to make some decisions about what to do with the property when you are no longer living together. Often, this means selling the home. New York is an equitable distribution state, meaning that a court will make every attempt to ensure that property is divided between you and your ex-spouse as fairly as possible — which may not always mean equally. If selling your home is on the table, you need to know whether it’s better to sell the home before your divorce is finalized, or after. Here’s what you should know.

Divorce Attorney Consultation

Selling Your Home Prior to Your Divorce

You and your spouse can agree to sell your home before your divorce is finalized. Typically, this means that you will split the proceeds from the sale down the middle, unless one party invested non-marital assets into the home. For example, if your spouse used part or all of an inheritance to purchase the home, they may receive their share of the proceeds, plus any non-marital funds that were used to purchase the home.

Benefits of selling your home before your divorce is finalized include but are not limited to:

  • Higher tax write offs. If you sell the house prior to your divorce, you may be eligible to exclude up to $500,000 in capital gains on the next year’s taxes, compared to only $250,000 if you sell after.
  • Negating the need to find an equivalent exchange. If one party wants to keep the house, they will need to find an equivalent exchange. There may not be enough value in other properties to consider its exchange for a home to be equitable. However, if you sell the house, no equitable exchange is needed, because the proceeds from the sale are simply split between both parties.
  • The emotional relief of being able to move on. If your marital home is a source of emotional strain for you, selling it may be the best option. You’ll receive a sum of money that you can use as a down payment on another home or to rent an apartment or condo if you wish. You won’t be stuck living in a home that continues to cause heartbreak.

Who Gets the House in the Divorce?

If you decide not to sell your home before the divorce, likely one of you will be awarded the home in the divorce settlement. You and your ex-spouse may reach an agreement on who gets the home in exchange for what, or a Long Island divorce judge may make the decision for you if your divorce becomes contested.

Selling Your Home After Divorce

If you were the party that received the home after the divorce was finalized, there are a few benefits you can still incur. Consider these before making a final decision on whether to sell the home before or after dissolving your marriage.

  • Increased property value. The value of property generally increases over time, and if you’ve done any maintenance or renovations, this can make your home worth much more than it was originally before the divorce. You’ll likely to be able to sell it for a higher amount in this case than if you had sold it as-is prior to the divorce.
  • Reduced real estate stress. Selling a home and going through a divorce simultaneously can be difficult. If you and your ex-spouse are able to easily find an equivalent or equitable exchange for the home, going through the real estate process is one less thing to worry about.
  • A place to live. If you don’t have much left after the divorce, you’ll have someplace to live while you work on getting back on your feet and learn how to live independently.

When to Contact an Experienced Divorce Lawyer

Property division in a Long Island divorce can be complicated, especially in high net worth or contested divorces. Contact Hornberger Verbitsky, P.C. to learn more about equitable distribution in New York and when the right time to sell your home may be. Call now for a consultation at 631-923-1910.

 

GET YOUR FREE CONSULTATION TODAY
Call 631-923-1910 or fill in the form below

Robert Hornberger and Christine Verbitsky

Get your complimentary consultation and case evaluation with our experienced attorneys today.

Your attorney will describe the many options available and determine together which is the right solution for you. By the end of this  conversation, we’ll all understand how we can best help you to move forward.

No Cost or Obligation

There is no cost or obligation for this initial consultation. It is simply an opportunity for us to get to know each other, answer your questions and learn if Hornberger Verbitsky, P.C. is right the right law firm for you. Give us a call at 631-923-1910 or fill in the short form below for your free consultation and case evaluation.

All Fields Are Required

Divorce Lawyer Long Island New York
Google Review of divorce longisland
Tara Tocci
Tara Tocci
20:59 17 Sep 21
I called to make an appointment for a consultation to discuss a mediated divorce, the office was fantastic with getting me a prompt appointment. When going in all my questions were asked and I left feeling comfortable in my decision to move forward in using the Hornberger/Verbitsky office. Despite a pandemic going on the office still worked diligently to get my papers filed and my divorce complete in a timely manner. Highly recommend!
cristina romero
cristina romero
20:17 17 Sep 21
Hornberger Verbitsky, P.C were phenomenal in every way. Robert was very genuine, patient and professional. Walking in, I had no idea what to expect but he went above and beyond to explain the entire process thoroughly. He guided and informed me of my rights. Patty was amazing, she answered every question I had no matter how many times I called, she was very understanding. I highly recommend Hornberger Verbitsky, P.C. Even if its just for questions on how to navigate this process.
Successful Divorce Strategies Free eBook
divorce questions answered
Child Support & Spousal Maintenance Tools
Spousal Maintenance Calculator
Child Support Calculator

Pin It on Pinterest