Selling a House During Divorce in Maryland
Selling a house during a divorce in Maryland can be a complex process, but it doesn’t have to be.
In Maryland, where the divorce rate is approximately 40% according to the CDC, many homeowners will find themselves real estate they need to sell
Understanding the steps involved in selling your home while navigating the legal and emotional aspects of divorce can make the process less overwhelming.
In this blog post, we will guide you through legal implications and the key steps to successfully sell property in Maryland during a divorce.
Disclaimer: This blog post provides general information on Maryland real estate and is not personalized advice. Maryland Estates, LLC, doing business as Creo Home Buyers, and its authors are not liable for the accuracy or use of this information; consult with a trusted real estate professional or attorney for personalized guidance regarding your unique situation.
Table of Contents
Sell a House for Cash During Divorce
Ready to sell your house for cash, in any condition? All of our offers come with no obligation or pressure to accept.
Sell your house fast AS-IS in without paying agent fees, making repairs, or even cleaning. Close on your schedule.
See how much we can offer for your house today!
Reasons You May Need to Sell Your House During a Divorce
There are several reasons why you may need to sell a house during divorce in Maryland:
Mortgage Payments Too High
One of the main reasons owners sell the marital home is due to finances. Financial reasons can also come into play when deciding what do happens to the house during divorce. Legal proceedings can be expensive, and selling the house can provide much-needed funds to cover legal fees and other costs.
In some cases, one spouse may be responsible for the mortgage or other debts associated with the property. Selling the house can help mitigate these risks and provide a fresh start for both parties.
Court Ordered Sale of Marital Home
Legal battles often come with divorce proceedings. These battles can drag on for months or even years, causing uncertainty around the ownership of the property.
If you and your spouse cannot agree on what to do with the marital house after your divorce, you may find yourself ordered to sell it by the court.
Neither Spouse Wants the House
Emotional reasons may also drive the decision to sell a house during a divorce. marital home may hold painful memories for one or both parties, making it difficult to move on. When neither party wants the house after the divorce is finalized, many choose to sell the martial home.
What Can Happen to the House in a Divorce
When going through a divorce, there are several things that can happen to the house.
Split Large Assets Among Spouses
One option is to split large assets in the divorce, including the primary home and any other real property, as part of the settlement.
For instance, one spouse may get the primary family residence and investment stocks, while the other agrees to take the vacation home and luxury car.
Splitting the assets can be a less complicated way to divide martial property. However, dividing assets can be a complicated process and will usually require the assistance of a divorce attorney.
Co-Own House with Ex-Spouse
Another option is for both parties to co-own the house. Sharing the house is only recommended if you find yourself in an amicable divorce. Even then, keeping the family home can lead to ongoing conflicts and disputes.
If you find yourself owing more on your house than it is currently worth, you may want to keep the home and share it with your ex-spouse. You can choose to rent the house and sell later or split your time living in the property after your divorce is finalized. Then revisit the decision to sell the house later on once you owe less than the value of the house.
Buy Out the Other Spouse
If one spouse would like to keep the house, they may choose to buy out the other spouse’s share of the house. This can be done by refinancing the mortgage or other funds to pay off your ex-spouse.
Sell House and Divide Profits
If neither party wants to keep the house or if it is not financially possible, selling the house may be the best option. This can provide a clean break and allow both parties to move on after selling the house.
The remainder of this blog post will focus on how to sell a house in Maryland during a divorce and split the proceeds.
Ways to Sell a House During Divorce in Maryland
There are several ways to sell a house during a divorce in Maryland.
Sell the Marital House FSBO
One option that some choose is the sale of a house by owner (FSBO). Many sellers are looking to sell this way so they can save on agent fees but it requires more time and effort from the both parties. Marketing the property and negotiating offers will be the responsibility of the sellers and can add a lot of additional stress.
Hire Real Estate Agent
One option is to hire an agent who specializes in selling properties during divorce proceedings. They can help with pricing, marketing, and negotiating offers.
Sell to House-Buying Company
Selling to a house-buying company can be a convenient option when going through a divorce in Maryland. These companies specialize in purchasing properties quickly and with minimal hassle, which can help you and your spouse expedite the sale process and move forward with your lives.
Sell with Owner Financing
Owner financing can be especially useful in a challenging real estate market. By offering seller financing option, you can attract buyers who may struggle to secure a traditional mortgage, potentially leading to a quicker sale.
The downside to selling with owner financing, is you will not be “done” with the house, as you will still serve as the bank or lender for the propertyg. This can lead to additional complications with an ex-spouse when property issues arise.
Sell for Cash AS-IS
Selling to an investor can be a great way to get cash fast during a divorce when time and resources are limited.
If you have a house to sell needing repairs, consider requesting a cash offer from a Maryland home investor who buys houses in any condition. Directly selling to a local cash buyer AS-IS can be a great way to avoid costly repairs.
How to Sell a House in Maryland During Divorce
When it’s time to sell the Maryland home during a divorce, there are several steps to follow.
1. Open Communication Between Spouses
First and foremost, it’s crucial to maintain open and honest communication with your soon-to-be-ex-spouse. Being on the same page can help streamline the process and reduce conflict.
Discuss your mutual goals and priorities when selling the house. Determine who will be responsible for handling the home sale costs and managing the property selling process.
2. Consult with Agents and Attorneys
Divorce proceedings can be legally complex, and the sale of your home may have implications for property division.
- Consult with an attorney in Maryland to understand your legal rights and obligations regarding the sale of the house. Your attorney can provide guidance on how the sale will affect your settlement and help you make informed decisions.
- Selecting the right agent is crucial. Look for an experienced agent with a strong track record in your local market. Your realtor can guide you through the selling process, market your home effectively, and handle showings and negotiations on your behalf.
Identify whether the marital property is considered community property or separate property.
3. Determine the House’s Value
When it’s time to sell the Maryland home during a divorce, there are several steps to follow.
Before listing your home, you’ll want to find out how much it’s worth. Fortunately, there are few ways to do this.
- If you are hiring a listing agent, they will provide you with insight to what your home would sell for AS-IS or after completing improvements. Hire a reliable realtor specializing in selling properties for divorcing couples.
- You can also hire a certified appraiser who can provide an accurate estimate of your house’s current fair market value. This will cost several hundred dollars at least, so carefully consider if you need an official appraisal in order to sell.
- You can also take a look at the prices that houses in your neighborhood that are similar to yours have sold for recently. See if home sellers in your neighborhood made repairs or improvements before they sold and how long the houses sat on the market.
This information will help you determine if you can sell the house AS-IS for a fair cash price or if you will need to decide how to cover the costs of renovations in order to increase the potential selling price.
4. Decide on Selling Terms
Work with your ex-spouse to decide on the selling terms, including the listing price and an acceptable sales price, how you will handle offers and negotiations, and the timeline for the sale.
Being clear about these terms from the beginning can prevent misunderstandings and disputes down the road.
5. Prepare the House for Sale
To maximize the home’s appeal to potential buyers, invest time and effort in preparing it for sale. This may include decluttering, cleaning, making necessary repairs, and enhancing curb appeal. Staging the home can also help potential buyers envision themselves living there.
6. List and Market the Home Sale
Once you’ve chosen an agent, they will list your property on the Multiple Listing Service (MLS) and market it through various channels, including online listings, open houses, and traditional advertising. Your realtor will also help you create a marketing strategy tailored to your specific property and target audience.
You can also choose to sell your house yourself (FSBO). However, due to the stress, cost, and time involved with a divorce many people opt not to sell their own house. Or you can sell the property directly to cash buyers or local Maryland home investors and avoid the hassles of listing and marketing during a divorce.
7. Obtain Home Sale Offers
When home offers start coming in, work with your realtor to evaluate each one carefully. You may need to consult with your attorney to determine how the home sale will impact the division of assets.
Negotiate with potential buyers to secure the best possible deal for the marital home and makes sense for you and your spouse. Both parties of the divorce will need to come to an agreement on the terms and conditions of the home sale offer in Maryland.
8. Close and Split Home Sale Proceeds
Work with your ex-spouse to decide on the selling terms, including the listing price and an acceptable sales price, how you will handle offers and negotiations, and the timeline for the sale.
Once you’ve accepted an offer to sell the property, the closing process begins. During this phase, your attorney will ensure that all legal requirements are met, and the necessary documents are prepared and signed.
Be prepared for inspections and appraisals, and address any issues that may arise. Work with your attorneys and agent to complete all necessary paperwork for the sale of your home.
Once everything is in order, attend the closing to finally sell the house and split the proceeds according to the divorce settlement or agreement. This can involve paying off any outstanding debts, such as the mortgage, and splitting the remaining proceeds.
The division of profit from a house sale during a divorce depends on various factors, including the ownership structure, applicable laws in your state, and the settlement agreement. Typically, the profit is divided equitably between both parties, following the principles of equitable distribution.
When Should I Sell My House in a Divorce?
Whether you choose to sell the house before, during, or after the divorce is finalized depends on various factors.
As of October 1, 2023, in the state of Maryland you are able to file for divorce after 6-months of living separate lives while still remaining in the home.
It’s advisable to consult with your attorney and financial advisor to determine the best time to sell your Maryland house based on your situation and any applicable laws.
Sell House Before Divorcing
Selling your house before getting divorced has some perks. It can make splitting the money from the sale easier, and you won’t have to deal with the stress of living together during the divorce. Plus, it might speed things up, so you can move on faster.
But, there are downsides too. Selling at the right time can be tricky, and you might not get as much cash for the house. Juggling the sale while handling the divorce can be a bit of a headache, and finding temporary places to live for both of you can be costly.
Sell Marital House During Divorce
Selling your marital house during the divorce process can have its benefits. It provides a clear way to divide the property and assets, reducing potential disputes.
This approach may also ensure a fair and equitable distribution of proceeds. This is especially true if you have already enlisted the help of an attorney during your divorce.
However, there are drawbacks to consider. Timing the sale can be challenging, potentially leading to a less favorable selling price. Selling during a divorce can be emotionally taxing, and disagreements may arise regarding the sale terms.
Sell House After Divorce
Opting to sell the house after the divorce has its advantages. It allows both parties more time to make informed decisions about the property, potentially resulting in a better sale price. Plus, the emotional stress of selling a shared home before the marriage is legally over can be avoided.
Yet, there are some downsides to selling once your divorce has been finalized, such as tax implications. When married, you can exclude up to $500,000 in capital gains from your income when selling your primary home. However, if one spouse moves out before the sale, this rule might not apply, potentially leading to higher taxes.
Consulting with tax professionals during the process is a wise move to avoid any surprises.
Tips to Sell a Home During Divorce in Maryland
Here are some tips on selling when you are going through a divorce and need to sell a Maryland home.
1. Hire an experienced agent: Work with a realtor who specializes in selling properties during divorces and understands the unique challenges and considerations involved.
2. Communicate openly with your ex-spouse: Maintain open and honest communication with your ex-spouse throughout the selling process to ensure both parties are on the same page.
3. Establish clear terms: Agree on clear terms and conditions for the sale, including how the proceeds will be divided, to avoid any potential conflicts. Consult with your attorney to ensure the sale aligns with the divorce settlement.
Sell Your House for Cash During a Divorce Maryland
Going through a house sale during divorce may seem challenging, but with the right strategy, it’s entirely feasible.
To make this process smoother, consult with an attorney to safeguard your legal interests and collaborate closely with a skilled selling agent who understands the local market.
As you explore your options, consider reaching out to Creo Home Buyers for a cash offer – their expertise in quick and hassle-free transactions can provide the financial relief and closure you need during this challenging time.
By taking these steps and maintaining cooperation with your ex-spouse, you can successfully sell your house during a divorce in Maryland and take the next steps in your journey.
Sell a House for Cash During Divorce
Ready to sell your house for cash, in any condition? All of our offers come with no obligation or pressure to accept.
Sell your house fast AS-IS in without paying agent fees, making repairs, or even cleaning. Close on your schedule.
See how much we can offer for your house today!
FAQ About Selling the Family Home During a Divorce in MD
What happens if one spouse wants to sell the home, but the other doesn’t?
If one spouse wants to sell the home, but the other doesn’t, it can create complications. In such cases, it’s important to work with your attorney to negotiate and come to an agreement. If an agreement cannot be reached, the court may intervene and make a decision regarding the sale of the house in Maryland.
What is equitable distribution of marital property?
Equitable distribution is a legal principle followed by most states during the division of marital property in a divorce. It means that property is divided fairly and equitably in Maryland, taking into consideration factors such as the length of the marriage, financial contributions of each spouse, and future needs of both parties.
Are there any tax implications when selling a home during a divorce?
Yes, there can be tax implications when selling a home during a divorce in Maryland. For example, you may need to consider capital gains tax if the property has appreciated in value. It is advisable to consult with a tax professional or financial advisor to understand the potential tax implications and any available exemptions or deductions.