Unfortunately, you can’t time your divorce with the real estate market. When uncoupling becomes the only option, the last thing on your mind is how to navigate selling your marital home.
If you are currently going through the divorce process or contemplating separating from your spouse, you’re likely facing many very difficult decisions, particularly as you think about living arrangements.
Many couples are facing this issue right now. With high interest rates, limited rental availability and high rent – it can be extremely difficult to plan your exit and be able to afford accommodations for yourself, and for many, your children.
For detailed information and advice for selling your property during a divorce, check out Adam’s short book on Navigating Selling Through Separation.
The First Step is Deciding What To Do With Your Marital Home when you Divorce
Should you sell it? Should you buy your partner out? Should they buy you out? Can you afford to stay? Can you afford to sell?
With all of these questions swirling around in your mind, it can feel extremely overwhelming. Stop and take a moment to evaluate your options.
If you’re looking to sell your marital home, you and your spouse will likely split the profit evenly. You can then use this as a down payment on your own property. Consult with a Realtor to see what you could sell your marital home for so that you get an idea of what your budget might be for your own property.
If you decide that you or your spouse would like to remain in the family home, you will have to negotiate buying them out or being bought out yourself. Typically, whomever is leaving will request a “release of covenant” and the remaining partner will have to requalify for the mortgage with their assets. Alternatively, the partner who is staying can buy out the other partner’s portion of the loan and can even use a home equity loan to do so.
Consulting a Real Estate Lawyer and Realtor will be integral at this point.
Unfortunately, with interest rates being what they are right now, for some couples this isn’t possible as the partner wishing to stay no longer qualifies for their mortgage. If this is the case for you, your options are to stay in the home with your ex for the time being or sell the property.
Buying or Renting a New Property When In the Divorce Process
If you sell your property and split the profit equally, you will have your base down payment. Depending on where you’d like to live and what accommodations you need (number of bedrooms, townhouse vs. condo vs. freehold), you’re looking at a range of prices.
You will have to qualify for a new mortgage on your own to make this move.
Keeping in mind that interest rates will impact your buying power right now, this may not be an option for you. In that case, you may need to rent a space for the time being.
Either way, consulting with a Realtor is your first step.
If you’re not ready to take this step yet, consider reading Adam’s book, Navigating Selling Through Separation, as it details the process and your options moving forward.
Selling a home is always emotional. When separating couples are preparing to sell, stress and emotions compound exponentially. As a Realtor who builds long-term client relationships, Adam Mills knows that couples navigating separation need compassion, clarity and results from their real estate team.