Dividing The Proceeds From The Sale Of Your Family Home Upon Divorce
Couples who own a home together and who decide to end their marriage have a few different options when it comes to disposing of that asset. One party, for instance, may wish to keep the property and give the other spouse a larger share of a different asset in exchange. In other cases, the parties may agree to go on as co-owners of the property. One of the most common options for couples, especially those who don’t share children and who are looking for a clean break, however, is to sell the property and split up the proceeds in an equitable fashion. It’s important to note that there are tax implications for going this route, which is why divorcing homeowners are often encouraged to work with an attorney when listing and selling their home during divorce.
Tax Implications of Selling the Marital Home
Florida couples who decide to sell their home upon divorce should know that capital gains taxes will apply to any proceeds received from the sale of that property. How much is owed, however, will depend on whether both spouses contributed to acquiring and maintaining the property when it was purchased, or if only one person was responsible. Typically, each party will end up needing to pay taxes on his or her share of the profits from the sale.
Steps to Selling Your Home During Divorce
Selling real estate during divorce requires careful planning, strategic decision making, and assistance from specialists. The following steps are a good way to kick-off this process:
- Hiring a real estate agent who can coordinate between the parties, manage staging, and maximize the sale price;
- Agreeing on the terms of the sale, including the list price, the timing of the sale (e.g. deciding on a quick sale to ensure quicker asset division or investing in improvements to obtain a higher market value), and how to handle offers and counteroffers;
- Planning for the closing process by establishing a strategy regarding offer terms, final profits, and contingencies;
- Working through the implications of existing mortgages, taxes, and liens with an attorney prior to closing on the sale; and
- Distributing the proceeds of the sale based on the predetermined agreement and settling outstanding debts and financial obligations.
Working with an experienced attorney will make each of these steps much easier for the parties involved, ensuring that all are aware of the stakes and what they stand to gain or lose upon finalizing the sale of their property.
Call or Contact Our Florida Divorce Legal Team Today
Navigating the sale of the family home during divorce can be not only an emotional process, but also a legally complex one. Doing so to everyone’s benefit, however, is possible with careful planning and the right legal support. Experienced Fort Lauderdale property division attorney Sandra Bonfiglio, P.A. is here to help, whether you wish to keep or sell the family home as a part of your divorce. Call or contact us online to get started on your case.
Sources:
forbes.com/advisor/legal/divorce/who-gets-house-divorce/
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
