Selling a house during a divorce in Maryland is often a complex process, but it doesn’t have to be.

The divorce rate in Maryland is approximately 40% according to the CDC. With that, it’s likely many homeowners will find themselves needing to sell a marital home.

Navigating the legal and emotional aspects of divorce are stressful enough on their own to say the least.

In this blog post, we guide you through the process of selling a property in Maryland during a divorce. Going over all the legal implications and key steps to make your sale a success.

We want to help you understand the steps involved in selling the marital home. Hopefully this will make the selling process less overwhelming.

Maryland couple selling house during divorce

Disclaimer: This blog post and website provides general information on Maryland real estate. 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 guidance regarding your unique selling situation.

Reasons You May Need to Sell Your House During a Divorce

reasons to sell house during divorce Maryland

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. These financial reasons can take many forms. One reason is legal proceedings when divorcing can be time consuming and expensive. Selling the house can provide much-needed funds to cover these legal fees and other costs.

In some cases, one spouse may have financial responsibilities tied to the home. Things like 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

divorce court can force property sale in Maryland

Divorce proceedings often come with legal battles that can drag on for many months or even years. This can cause significant uncertainty around the ownership of the property.

If you and your spouse cannot agree on what to do with the house after your marriage ends 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 in Maryland due to divorce. The marital home may hold painful memories for one or both parties, making it difficult to move on, which is a significant factor to consider in the event of a divorce. When neither party wants the house after the divorce, many choose to sell the home and split the proceeds.

Skip Traditional Selling Hassles and Sell FAST AS-IS 100% Free!

What Can Happen to the House in a Divorce

what happens to house divorce Maryland

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 the large assets acquired during your marriage. This includes the primary home and any other real estate property as part of the divorce settlement.

Splitting assets could take many different forms. For instance one spouse gets the primary house and stocks, the other takes the vacation home and luxury car. Though, in most cases where children are not involved, you and your ex-spouse will decide to sell the house you lived in together.

Split large value assets when divorcing Maryland

Most of the time, splitting the assets is a less complicated way to divide martial property than selling everything off. On the other hand, dividing assets can still be a complicated process. Going through it alone is not easy and will usually require the help 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 in years to come.

If you find yourself owing more on your house then it is currently worth, you may want to keep the home until you are able to pay down the mortgage. However, if you continue to co-own the property, you will be sharing it with your ex-spouse until you buy them out or sell it.

You can choose to rent the house and sell later or split your time living in the property after your divorce. Revisiting the decision to sell the house later on once you owe less than the market value of the home.

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 property. This can be done by refinancing the mortgage or using other funds to pay off your ex-spouse. 

Sell House and Divide Profits

divide proceeds between spouses after selling Maryland home

Selling the house may be the best option for those going through a divorce in Maryland. Especially if neither party wants to keep the house or if it is not financially possible. Selling the property and splitting the proceeds can provide a clean break and allow both parties to move on after it’s sold.

The rest 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

couple deciding to sell the 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 chose is to sell the house “For Sale By Owner” or FSBO. Many sellers look at FSBO in Maryland as a way to save on agent fees and we can certainly understand the appeal of that. But selling FSBO requires more time and effort from the parties involved so you need to be prepared. Marketing and negotiating offers will be your job as the sellers rather than that of a real estate agent and can add tensions to an already stressful process.

Hire Real Estate Agent

One option many Maryland property owners choose is to hire an agent who specializes in selling properties during divorce. An agent can help you sell your home by assisting with pricing, marketing, negotiating offers, and the entire closing process.

Sell to House-Buying Company

Selling to a Maryland house-buying company can be a good option when you want to sell fast AS-IS when going through a divorce. Professional property buying companies specialize in purchasing real estate quickly and with minimal hassle. This can help you and your spouse expedite the home sale process and move forward with your lives more quickly than selling the traditional way.

Sell with Owner Financing

Owner financing can be especially useful in a challenging real estate market. By offering seller financing, you can attract a larger group of buyers. Particularly buyers who may struggle to secure a traditional mortgage but are more than capable of making a monthly housing payment. Selling with seller financing will definitely help lead to a quicker home sale.

The downside to selling with owner financing is you will not be “done” with the house, a significant consideration when sellers are looking to move on with their lives after dividing a Maryland house in a divorce. You and/or your ex-spouse will still be involved since you will need to serve as the bank or lender for the property. Selling with owner or seller financing can lead to more 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.

Do you have a house to sell needing repairs? Consider requesting a cash offer from a Maryland home investor. Investors are typically interested in buying houses in any condition. Directly selling to a local cash buyer AS-IS can be a great way to avoid costly repairs.

Skip Traditional Selling Hassles and Sell FAST AS-IS 100% Free!

How to Sell a House in Maryland During Divorce

How to sell a house during divorce in Maryland

When it’s time to sell the Maryland home during a divorce, there are several steps to follow:

1. Open Communication Between Spouses

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. Who will be responsible for handling the home sale costs? Who is managing the property selling process? Hashing this out upfront will help once things get moving.

2. Consult with Agents and Attorneys

Divorce proceedings are not just emotional and stressful but can be legally complex. The sale of your home may have implications for property division.

  • Consult with an attorney in Maryland to understand your legal rights and obligations. Your attorney can provide information on how the sale will affect your settlement. They can also help you make informed and unbiased decisions.
  • Selecting the right agent, familiar with divorce laws and selling a house during a divorce in Maryland, is crucial. Look for an experienced agent with a strong track record in your local market. Your realtor can guide you through the practical aspects for the sale of your house, helping to take the emotion out of it. They can market your home effectively, handle showings, and negotiate on your behalf.

Identify whether the marital property is considered community property or separate property.

3. Determine the House’s Value

How to get cash for house after marriage ends

Before listing your home, you’ll want to find out how much it’s worth. Fortunately, there are a few ways to do this.

  • A listing agent can provide you with insight on what your home would sell for AS-IS or after improvements. Hire a reliable realtor specializing in selling properties for divorcing couples.
  • A certified appraiser can provide an estimate of your house’s current fair market value. This will cost at least several hundred dollars. So carefully consider if you need an official appraisal in order to sell for what is considered marital property.
  • You can also take a look at houses in your neighborhood that are similar to yours that have sold recently. Did home sellers in your neighborhood make repairs or improvements before they sold? How long did the houses sit on the market?

This information will help you determine how best to proceed. Can you sell the house AS-IS for cash or do you need renovations to increase the potential selling price?

4. Decide on Selling Terms

Decide on divorce home selling terms

When it’s time to sell the Maryland home during a divorce, you’ll work with your ex-spouse to decide on the selling terms. This includes who will determine and manage the asking price, marketing, negotiations, and closing timeline. 

If you choose to hire an agent, they can assist with most of these aspects of your home sale. Being clear 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 can include decluttering, cleaning, making necessary repairs, and enhancing curb appeal. Staging the home or using virtual staging 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). It’s important to market the home using online listings, open houses, and traditional advertising. Your realtor will also help you create a tailored marketing strategy. This strategy will be specific to your property and target audience.

You can also choose to sell your house yourself (FSBO). If selling FSBO, you can use a flat-rate listing service or discount broker to get your home listed on the MLS, saving you on commissions. However, due to the stress, cost, and time involved with a divorce many people opt not to sell their own house.

If you want to skip listing and marketing, you can sell the house directly to cash home buyers in Maryland. Selling to cash home investors from a house-buying company is the one of the best ways to avoid the hassle of listing and marketing during a divorce.

7. Obtain Home Sale Offers

When home offers start coming in, work with your realtor or ex-spouse to evaluate each one carefully. You may need to consult with your attorney to determine how the sale will impact the division of assets.

Negotiate with potential buyers for the best possible deal for your marital home. Make sure the deal 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 offer in Maryland before signing.

8. Close and Split Home Sale Proceeds

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. The divorce attorney or settlement agent will also make sure the necessary property selling documents are prepared and signed. 

consult divorce attorney when selling house Maryland

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 or pre-sign closing documents in advance to officially sell the home. The proceeds from the sale of the house will be split according to the divorce settlement or agreement. This can involve paying off any outstanding debts 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.

Skip Traditional Selling Hassles and Sell FAST AS-IS 100% Free!

When Should I Sell My House in a Divorce?

Best time to sell property when facing divorce

Whether you choose to sell the house before, during, or after the divorce is finalized varies. 

As of October 1, 2023, in Maryland you are able to file for divorce after 6-months of living separate lives. You could find that you both are still living in the martial home during that time if you haven’t found another place to move to.

Consult with your attorney and financial advisor to determine when to sell. They will give you guidance based on your situation and current applicable laws.

Below are the process and cons of when divorcees decide to sell their house in Maryland.

Sell House Before Divorcing

Selling your house before getting divorced has some perks. It can make splitting the money from the sale easier. You also 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 to selling before a divorce is finalized. Selling at the “right time” can be tricky when you feel forced to sell, and you might not get as much cash for the house. Not to mention finding temporary places to live for both of you can be costly and time consuming as well. All of this could add delays and prolong your divorce if you decide you must sell beforehand.

Sell Marital House During Divorce

Selling your marital house during the divorce once the paperwork is filed is the most common option. There are many benefits to selling for cash during divorce. The main pro being a reduction of potential disputes so you can sell the house and divide the proceeds more easily.

However, there are drawbacks to consider. Timing the sale can also be challenging and lead to a less favorable selling price. Selling during a divorce can be emotionally and financially taxing, especially if repairs are needed.

Sell House After Divorce

Opting to sell the house after the divorce has its advantages, especially in a community property state or an equitable distribution state, which can impact how assets like a Maryland house are divided. It allows both parties more time to make informed decisions about the property. This can potentially result in a better sale price. Plus, you can avoid the stress of selling a shared home before the marriage is legally over.

There are some downsides to selling once your divorce has been finalized. One of those being the tax implications. When married, you can exclude up to $500,000 in capital gains from your income when selling your primary home. But if one spouse moves out before the sale, this might not apply and potentially lead to higher taxes.

Consulting with tax professionals is a wise move to avoid any surprises and help you determine the best time to sell your house financially when divorcing in Maryland.

Tips to Sell a Home During Divorce in Maryland

Property selling tips during Maryland divorce

Below are some tips on selling your house during a Maryland divorce.

1. Hire an experienced agent: Work with a realtor who specializes in selling Maryland properties during divorces. A knowledgeable agent will understand the unique challenges and considerations involved.

2. Communicate openly with your ex-spouse: Maintain open and honest communication with your ex-spouse throughout the entire selling process. This is really the only way to ensure both parties are on the same page and you can have as smooth of a sale as possible.

3. Establish clear terms: Agree on clear terms and conditions for the sale, including how the proceeds will be divided. That way you can avoid any potential conflicts or misunderstandings. 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 and it can be. But with the right strategy, it’s entirely feasible. 

To make this process smoother you should consult with an attorney. This is the simplest way to safeguard your legal interests.

Also, 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. Our expertise is in quick and hassle-free home sale transactions. We can provide the financial relief and closure you need during this challenging time.

Request a FREE CASH Offer!

Golden Seal of Excellent Rating on Google for Creo Home Buyers

Creo Home Buyers buys houses AS-IS for cash in Maryland, Northern Virginia, and Washington DC. Simply fill in the form to get a fair all cash offer for your property in the DMV.

Get Your FAIR Offer!

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 divorce attorneys, well-versed in family law, to negotiate on your behalf and come to an agreement regarding the Maryland house. If an agreement cannot be reached, the court may need intervene and make a decision for you.

What is equitable distribution of marital property?

Equitable distribution is a legal principle followed by most states. The principle guides the division of marital property during a divorce. It means that property is divided fairly and equitably in Maryland. Factors include 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. Consult with a tax professional or financial advisor to understand how your home sale will impact your taxes. They can let you know about any available exemptions or deductions as well.

Similar Posts