Divorce is an emotionally and financially difficult time. When it comes to dividing marital property, such as your home, you have many options to consider: selling the property, buying out your partner, co-owning, or trading it for other assets.
While we can’t give you legal advice, this guide will help you navigate the process of keeping or selling your house during a Florida divorce.
If you want to sell your house quickly and as-is, Florida Cash Home Buyers can help. Contact us today to get a free, no-obligation offer.
Table of Contents
- How Is Property Divided During a Divorce in Florida?
- How to Decide Whether to Sell, Buyout, or Co-Own Your House During a Divorce
- Options for Selling Your House During a Divorce
- Should You Sell Your House Before or After the Divorce is Finalized?
- Tax Implications When Selling a House During Divorce
- What are the Legal Documents Required When Selling or Keeping a House Post-Divorce?
How Is Property Divided During a Divorce in Florida?
Figuring out what happens to your marital home during the divorce process can be tough, and you have several options to weigh: selling the house, one of you buying the other out, continuing to co-own, or letting it go in exchange for other assets.
However, if you and your spouse can’t agree on what to do, a judge will step in to make the call.
Keep in mind that in the state of Florida, the law follows equitable distribution for a divorce settlement, meaning it doesn’t always guarantee a 50/50 split. Certain factors can impact how your assets get divided — more on that next.
Factors for Determining Property Distribution During a Divorce In Florida
While Florida law doesn’t always mean property is divided 50/50, the goal is to divide property equitably. When couples can’t agree, the court will step in to create a court-ordered agreement that determines how your marital assets are divvied up.
Factors that influence this decision on property division include:
- Type of property (marital vs. non-marital): The court separates marital property, which is considered community property and is subject to equitable distribution, from non-marital property, which isn’t. Non-marital property includes assets acquired before marriage or, in some cases, inheritances or gifts to one party.
- Dependent children involved: In a divorce case, courts often prioritize what’s best for kids when considering how to handle the family home, favoring the parent who will be the primary caregiver to maintain stability.
- Contributions from each spouse: Both financial contributions, such as paying the mortgage, and non-financial contributions, such as managing the household, are factored in.
- Each spouse’s economic circumstances: Courts tend to favor whomever has the financial ability to maintain the home post-divorce, including mortgage payments and upkeep.
- Length of marriage: Longer marriages generally lead to more entanglement as far as finances and property, complicating the division process.
Understanding these factors can help you prepare for the property division process and come to a fair agreement, ensuring a smoother transition during a challenging time.
How to Decide Whether to Sell, Buyout, or Co-Own Your House During a Divorce
Divorce is never easy, and deciding what to do with your shared home adds another layer of complexity. Emotional and practical factors, in addition to financial, should guide your decision. The following sections offer a brief description of each of the main routes you can take and why they might be desirable.
Sell the House
If money is tight, selling the house might be your best bet. For example, if neither you nor your spouse can afford the mortgage or maintenance costs on your own, selling can solve that problem. Similarly, if you need cash to pay off joint debts, or even just want to move on and split the proceeds, you might want to sell the property.
If you don’t want to invest in repairs or staging or go through a potentially long process, selling to a cash buyer can expedite the sale of your home as-is.
Buyout Your Spouse
If you want to keep your home, buying out your spouse by paying them half the home’s market value or trading other assets of equal value is another option. Make sure you can afford mortgage payments, property taxes, and upkeep costs on your own. Paying your spouse their share up front simplifies the division process, entitling you to ownership.
If you choose to buy out your spouse, you might want to consider refinancing your mortgage so you can get a lower interest rate, especially if alimony won’t impact your ability to qualify. Keep in mind that refinancing means a new loan, which might not be feasible if your income or credit isn’t in a good place.
If you want to keep the house, you’ll need to ensure that your spouse’s name is removed from the deed and the mortgage. This typically involves having them sign a quitclaim deed and potentially refinancing your loan in your name only.
Again, we can’t provide legal advice, so be sure to seek out a lawyer to help you navigate this difficult process.
Ultimately, before you go this route, think long-term and ensure that you can comfortably take on the financial obligations associated with solo home ownership.
Co-Own the House
Co-owning the house usually works best when it’s being rented out or kept for the stability of your children. It’s important to establish clear agreements on responsibilities and financial contributions — like the mortgage, repairs, and plans for a future sale — to make the arrangement work.
Often, you’ll come to an agreement that lets one spouse stay in the house with the kids until they reach maturity, selling the home after that.
Consult with a financial advisor, divorce attorney, or real estate professional to ensure this choice aligns with your financial needs and long-term life goals.
Options for Selling Your House During a Divorce
If you want to sell the house but your spouse doesn’t want to, you can force the sale by filing a partition claim with the court. But it’s best if you and your spouse come to an amicable agreement on how to move forward.
Either way, consult with a legal professional to understand the specific procedures and potential challenges involved.
Sell to a Cash Home Buyer
If neither of you wants to keep the house, selling it to a cash home buyer like Florida Cash Home Buyers can help you sell fast without the hurdles of realtors or closing costs. You can sell your home as-is without investing in repairs or staging and get cash in hand fast.
We can provide a free, no-obligation cash offer and guide you through the entire process. And because we pride ourselves on full transparency, we’ll also let you know if we don’t think selling is the best option.
The pros of selling to a cash buyer include:
- Quick and hassle-free closing process
- Get cash in your hand quickly
- No financing delays
- Sell your house as-is without making repairs, which can be expensive and time consuming
The cons of selling to a cash buyer include:
- Lower offer than market value because repairs and fees are accounted for in the pricing
- Limited negotiation
List with a Real Estate Agent
Listing your home with a real estate agent can potentially yield a higher sale price and more proceeds. However, this option often involves more time and effort.
You typically have to prepare the home for sale, which means making necessary repairs, decluttering, and staging. Then, the agent will market the property, schedule showings, negotiate offers, and handle the paperwork.
In addition to the costs associated with marketing and closing on your home, you might be involved in the process for longer than you want.
The pros of listing with a real estate agent:
- Potential for a higher sale price
- Professional guidance from agents that can handle the complexities of the sale process, including pricing, negotiations, and paperwork
- Access to more buyers since agents use MLS (Multiple Listing Service) and other marketing tools to reach a wide audience, increasing the chances of a successful sale
The cons of listing with a real estate agent:
- The sale process typically takes months, which can prolong financial and emotional stress during a divorce
- Possible investments in repairs, cleaning, and staging, which may be difficult for divorcing couples to coordinate
- Giving up a significant portion of the sale proceeds (usually 5% to 6%) to agent fees, reducing the net profit for both parties
Should You Sell Your House Before or After the Divorce Is Finalized?
The timing of your home sale can significantly impact your financial situation and future plans. Whether you choose to sell before or after the divorce is finalized is up to you and your spouse — both parties need to agree.
But selling before the divorce comes with certain advantages, like:
- Providing cash to pay for divorce expenses and to help you make the transition
- Getting capital gains tax benefits, which we’ll go over in the next section
- Fully cutting ties with your spouse after the divorce
If you and your spouse can’t agree on the sale of the property, you might need legal intervention or a court order to proceed. Consulting with a financial advisor or family law attorney will help you make the best decision for your specific situation.
Tax Implications When Selling a House During Divorce
Selling or keeping your home during a divorce can have significant tax implications, so it’s essential to understand your options before making a decision.
When selling your home, you may be subject to capital gains taxes, which are taxes you pay on the profit made from the sale. However, the IRS provides a capital gains exclusion of up to $250,000 for single filers or $500,000 for married couples who file jointly, as long as the home has been your primary residence for at least two of the last five years.
Post-divorce, this exclusion typically drops to $250,000 if you’re filing as single, and eligibility may depend on meeting the residency requirement individually.
If you decide to keep the home, you might be able to deduct mortgage interest and property taxes on your tax return. On the other hand, if you transfer ownership of the home to your spouse as part of the divorce, it generally won’t trigger a taxable event because this is considered part of the settlement.
To fully understand the tax implications of your specific situation, be sure to consult a professional tax advisor or financial planner.
What Are the Legal Documents Required When Selling or Keeping a House Post-Divorce?
To ensure a smooth transition of property ownership during a divorce, several legal documents usually come into play:
- Marital settlement agreement: This agreement outlines the specific division of assets, including the home, between the spouses.
- Quitclaim deed: This legal document transfers ownership of the property from one spouse to the other.
- Dissolution of marriage: This official court order finalizes the divorce and legally ends the marriage.
- Refinancing documents (if applicable): If you’re keeping the home, you may need to refinance the mortgage to remove your spouse’s name from the loan.
Ready for a Fresh Start?
Selling your home during a divorce doesn’t have to be a stressful experience. Florida Cash Home Buyers can help you navigate the process and provide a quick and hassle-free solution. Contact us today to get a cash offer and help put this difficult chapter behind you.