Selling a home can be stressful in a market that favors buyers. When you are going through a divorce, it can be even more difficult when the home sale directly affects the ability for spouses to purchase their own separate homes. What are a divorcing couple’s options under these trying circumstances?
Unfortunately, many couples face this problem. Your options are limited and depend on you and your spouse’s ability to cooperate during this transition period of your divorce. Here are some options you might want to consider:
The most cost-effective plan is to continue to reside together in the home until your divorce is finalized and/or the house sells. This will likely only work if your house is large enough for you each to establish your own bedroom space and if you are able to keep open hostility out of your day-to-day living. You should agree on house rules to minimize any conflict that may arise by cohabitating.
When Children Are Involved
If you have minor children, you should also agree on rules for their care and establish some separate parenting time during which each of you can engage in activities with them. Continuing to live together until your home sells is a common arrangement in a buyers’ market.
If both of you have family or friends in town where you can stay on a part-time basis, you may consider rotating in and out of the home during your respective parenting time with the children. This way, only one parent is in the residence at a time and you are not forced to live together, but the children are able to maintain stability by staying in their own home.
When You Just Can’t Live Together
If you absolutely cannot live in the same home, one of you will have to move in with friends or family or rent a residence elsewhere. This may require that you cash in some investments or other assets to fund a second living space as you wait for your home to sell.
Reconsider Your Asking Price
As a last resort, you can reduce the price of your home to a level that will accomplish a quick sale. In order to weigh the economic benefit or detriment of a price reduction, you should calculate the monthly carrying costs to maintain the home, estimate the number of months you might need to stay in the home to obtain your preferred sales price, and assess any reduction in capital gains tax that will result from a sale at a lower price. You should also assess the emotional cost as you wait for the home to sell.
Each Case Is Different
Of course, there are other solutions that might exist based on your specific situation. You should contact professionals in this area to discuss your options including attorneys, realtors, accountants, and tax advisors.
Contact us at Hallier Lawrence for more information on how we can help you with the best options for your divorce.