Masha Rusanov | January 11, 2024
Divorce is never easy, and dividing assets like real estate can be extra challenging. Whether you are considering selling your marital home or investment properties, or one partner plans to buy out the other's interest, there are several critical real estate questions to consider when going through a divorce.
1. What is the current market value of the property?
Before making any decisions about the future of your home, it's crucial to have a clear understanding of its current market value. The price can be determined by hiring a certified price strategy advisor (PSA) or an experienced real estate agent who understands the local market. The PSA will conduct a comparative market analysis using the same algorithm an appraiser would use. An accurate valuation can help you make informed decisions about selling, purchasing, or dividing the property.
2. What are the tax implications of selling or transferring ownership?
Selling a home can have significant tax implications, especially if you have owned the property for a long time and have substantial equity built up. Additionally, transferring ownership of a property between spouses can also have tax implications. We strongly recommend consulting a tax professional to understand the potential tax consequences of any real estate decisions made during your divorce.
3. Who will be responsible for mortgage payments and other expenses?
If both partners are listed on the mortgage, deciding who will make payments during and after the divorce is essential. This can be especially important if one partner plans to keep the property but may need help making payments independently. Other expenses like property taxes, insurance, and maintenance should be considered when making financial decisions about real property.
4. What are the emotional ties to the property?
Finally, consider the emotional ties that each partner may have to the property. If one partner has a strong emotional attachment to the home, they may be willing to pay more to keep it or may not want to sell it at all. Understanding each partner's emotional connection to the property can help facilitate a more amicable decision-making process.
Going through a divorce can be stressful and emotional, but by considering these key real estate questions, you can make informed decisions about the future of your property. Working with a real estate agent, especially a certified PSA, can provide valuable guidance and support.
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