Ending a marriage can be a really difficult decision to make. Unfortunately, it comes with other difficult choices that can add even more stress to an already stressful situation, including decisions about what to do with your house and other shared assets.
During that difficult time, the last thing you want to think about is a home sale. However, this decision has many financial implications that are important for you and your future, and that need to be considered. Here, we’ll go through some essential aspects you need to keep in mind if you are thinking about selling your house before or after getting divorced.
Getting divorced in Oregon
Oregon is an “equitable distribution” state. This means that all the marriage’s assets and property (also known as “community property”), will be split equitably. However, this doesn’t necessarily mean that they will be divided exactly equally.
While this division of assets is pretty straightforward when it comes to cash, it becomes more complex when dealing with physical items, such as houses. This means that one partner may end up with more property than the other one if the court decides so. Since a house is usually the most valuable community asset, one person may receive the entire house while the other gets everything else. Needless to say, this isn’t an ideal situation.
Selling your home before getting divorced would mean cash, which can be more easily distributed equally during divorce than a house.
Considerations before selling your house
If you are getting divorced, there are some questions you need to ask yourself (and your soon-to-be ex-partner) before deciding on the right time to sell your house, including:
- Children. Do you have young children? If you and your partner have kids, it’s a priority to ensure that they have a stable home.
- Finances. Will you and your partner be able to pay your mortgage on your own?
- Is the divorce amicable? If it’s not, choosing who will live in the house will be problematic.
Why is it better to sell your house before divorce?
Some advantages of selling your home before divorce are:
- You are bringing cash into your community’s assets pool that can easily be divided.
- You’ll save money because you won’t have to pay as much for a lawyer to mediate the division of property.
- You can deduct $500k from your taxes rather than the maximum of $250k for a single adult.
- Selling your current home will provide funds for purchasing your future home.
- You’ll be able to start your new life in a new place as soon as possible.
How can you sell your home before your divorce?
For most, the first thing that pops into their head when thinking about selling a house is hiring a real estate agent. However, nowadays there are different ways to sell a home:
1. The traditional way
Working with an agent the “old-fashioned way” has several implications. In that scenario, you would need to:
- Repair any issues your home may have before selling.
- Find a reputable real estate agent you can trust.
- Organize your schedule and make sure you’re not in the house when potential buyers come to visit.
- Deal with the stress and uncertainty of selling your home during an already stressful time of your life.
- Wait for several months until you get the right offer — which may cause the divorce to be delayed.
Maybe you’ve heard of Opendoor, Redfin, and Zillow (which no longer buys houses). iBuyers are online real estate investors that use technology to make cash offers quickly.
These procedures, however, may take place without any representatives visiting your home, which means you’d need to trust that the iBuyer is making a reasonable offer for your house.
3. With a real estate investor
A real estate investor can buy your house in a matter of days, making the selling process simple and quick. With Columbia Redevelopment, you can receive an offer for your house in just 2-3 days.
At Columbia Redevelopment:
- We pay in cash, which simplifies the division of property.
- We can buy your house as it is — If your home has any issues, there is no need to fix them. This means you won’t have to spend time or money on home improvements.
- Working with a real estate investor gives you flexibility. You can live in the house for a little longer while you find a new place.
- You’ll save money because you won’t need to pay any fees or commissions. Also, you won’t have to pay a lawyer to decide how to divide your home.
We are here to help you!
The end of a marriage is one of the most distressing situations one can experience. At Columbia Redevelopment, we are here to make things easy for you when you need it the most.
We have lots of experience buying homes in Portland, Vancouver, and Roseburg. We are well known for our honesty and for helping our clients sell their homes in a quick, simple, and transparent way.