The divorce process is merely easy, but the major disputes occur over assets. For most married couples, the biggest shared assets are houses. Those couples going through a divorce often want to know, “what happens to the shared real estate in a divorce?”
Let us explain the process to you. But, first, we need to know which property is considered as the shared marital property.
What is Shared Marital Property?
The eligibility of property to be considered as a shared marital property depends on the date of purchase. If the property is purchased by one of the spouses before getting married, then the property is titled as “Pre-Marital” asset. This property belongs solely to that spouse. However, if the same property served as the living home for the couple after marriage or as a source of marital income, then the property may be considered as a shared marital asset. In such a case, the property will be subject to equal distribution between both spouses.
In some states of the USA, it is possible to buy real estate before marriage and keep its exclusive ownership. It is true even in the absence of an “antenuptial” or “prenuptial” agreement; you can still retain the ownership of the property. The only condition that applies is that if the property is exclusively a benefit of the owner’s spouse and not in concern with the other spouse. If the owner spouse begins sharing the benefits of the property, such as rental income depositing in a joint account, then the exclusive ownership interest may dissolve.
Property which is purchased after marriage by one or both partners, or serving as the house where the couple is living is generally considered as shared-marital property. And it must be split in fair manners. The main concern of distribution is equability irrespective of the fact that who paid what to buy the house.
Now, let us explain what happens to a shared marital property after filing a divorce.
What Happen to Real Estate After Filing a Divorce?
Who gets what one of the biggest challenges for some soon-to-be-divorced couples is. In most cases where the house where the couple is currently living is at stake, the biggest dispute that occurs is who will move out? Neither of the spouses will want to move out if they don’t have any other place to live. In such cases, the best solution is to sell the house and equally distribute the amount. But, it is not as easy as it sounds. Let’s see what happens after filing a divorce.
Who will keep the House?
To be honest, if the couple is divorcing on good terms, the process will be a lot easier and straightaway compared to vice versa situation. Mostly, a couple who are departing their ways after a long fight, usually makes it so ugly to distribute the rights of the real estate. If both the spouses sit together and have a detailed discussion, then no dispute will arise. In most cases, when the distribution is a question, the couple usually ends up selling the real estate and distribute the proceedings among each other equally.
What if the property has no potential buyers in the market? What if the property sits in the market for long? In such cases, the legal consultant advises the couple to sell the property to home buying companies for a fair price, which may be a little less than the market price. It will save them time and headaches of legal proceedings. In such cases, the company act as a middle man itself. It solves the dispute between both spouses.
So doing so will solve a big question that will keep the house as both spouses won’t. But they both will get an equal share of the money by selling the house.
Why Selling the Property Instead of Distributing it?
Let say a couple owns one house only. They both lived in that house since marriage. Irrespective of the fact who invested the money in the house, it is a fact that both spouses don’t own any other property, and one has to move out. Who will make the big sacrifice? It rarely happens that one spouse willingly hands over the ownership of the property to the other one. So, the middle ground is to sell the property directly.
Now, the point is why selling the property directly to a home buying company. Well, there are many reasons for that. A traditional home selling where you hire a realtor and list the house in the market involve legal proceedings like:
- Qualifications from banks
- Mortgage underwriting time
- Property inspection time
And, the worst part is after going through all of this process, you are not 100% sure if the buyer will qualify in the end. That is one of the main reasons why divorcing couples choose to sell the home to a professional home buying company. The process usually takes 7 to 10 days even faster than finding a realtor and listing your house. By doing so, the couple also saves 3 to 10 percent of realtor commission.
What if the Property Needs Renovation? Who will pay the Amount of Renovation? It is another big question that arises while dealing with a divorce. The solution to this problem is again the Home Buying companies. Why? Let’s check out the reason.
No Need for Maintenance or Renovation
Selling a house in a traditional way takes a lot of time, money, and effort. Other than a long list of documentation, you will also need some renovation, staging, and decoration of your home to attract buyers. On the other hand, selling it directly to a home buying company can save your time, money, and efforts. They buy the home as it is. It means you don’t have to fight who pays the cost for repairs or renovations.
At some point, many such companies don’t even require an inspection of the property, which makes it truly AS-IS transaction.
There are some other benefits of selling your house directly to a home buying company while going through the process of divorce. Let’s have a look at these advantages.
Advantages of Selling the Shared Marital Property to Professional Property Buying Companies
The benefits are:
Benefit # 1: Minimal Risk in Transaction
First of all, in the process of selling a property to professional home buyers, you won’t need to go through a complicated process. They keep things straight forward and even shortened the process. You will only need to sign a contract agreement, and the rest work will be done by the company itself. You don’t need to worry about finding buyers, or any other longer process.
In a traditional selling of a property, the buyer has the right to sue you if they feel like you have not provided them the accurate information or made false claims regarding the property. But in the process of selling the house to professional home buyers, you don’t have to worry about that either,
Benefit # 2: No Open Houses, No Staging Needed
When you decide to use a professional home buyer in Los Angeles, California, you will not have to worry about going through a hassle of open houses and staging the house for potential buyers. You don’t have to move your excess stuff in the house to declutter the space. You don’t have to redecorate the kitchen or bathroom. You don’t need to worry about cleaning your house every time a potential buyer makes a call to visit your property. You don’t have to worry about leaving your house spotless.
The best part is you don’t even have to worry about having an argument with a buyer about what furniture you can take or what you can’t.
Benefit # 3: You Will Get Plenty of Time for Moving Out
Professional home buyers are in for the investment in your property. Unlike a traditional buyer who wants to move in as soon as possible, you will get plenty of time to move out. Even at some point, these companies allow you to move out in months. This is one of the biggest advantages of divorcing couples as they need more time to get settled emotionally and financially.
Another important advantage is that you don’t need to clean the house after moving out. You can leave it as it is. You simply pack your bags, move out the furniture you want, and leave the rest for the company to handle.
Divorce is a hectic process that takes up a lot of emotional and financial stability of any person. In such a case, the more easily the division of the property, the better for both the spouses. Instead of making the divorce ugly, it is wiser to keep the process simple and straightaway. And, to do this, the best suggestion is selling the property and equally distributing the proceedings.