How Your Real Estate is Affected by Divorce
How Your Real Estate is Affected by Divorce
Not every marriage is a match made in heaven, and some end in divorce or separation. But, do not worry, you are not alone with roughly 750,000 other divorces occurring each year. On top of everything, both parties need to address one generally dangerous territory: Real Estate.
When a couple gets divorced, they have to figure out what to do with their assets. Divorces are rarely easy, and even fewer finish with no serious asset conflicts.
Real estate is typically the largest shared asset in most couples, those going through divorce frequently ask: “What happens to real estate after a divorce?”
How to Divide Real Estate in a Divorce
There are three main ways to handle real estate in a divorce:
Splitting the Earnings from the Sale of the House
The simplest way to share the equity in a home is to sell it. After paying off their mortgage debt, taxes, and closing costs, the couple divides the leftover funds. The two exes can easily detach from each other’s life by selling the property.
One Ex-Spouse Keeps the Home
Refinancing the mortgage is the best approach for one spouse to become the sole owner.
In a refinance, the now-divorced homeowner must qualify for the loan using only one source of income. However, if the couple initially qualified for the mortgage based on two salaries, this may be challenging.
Both Share and Keep the House
When it comes to selling a property, there are occasions when the timing is not ideal. Perhaps the soon-to-be-divorced couple owes more on the house than it’s worth. Alternatively, they may be unable to afford separate homes and must continue to live together. The couple usually sells the house at some point, or one ex buys out the other’s stake.
Can Divorce Affect a Signed Real Estate Contract?
A couple’s divorce can complicate an otherwise straightforward real estate deal. Although purchasing a home when legally married but split from your former spouse is possible, additional procedures and considerations are needed.
Your legal separation agreement will be required by your lender first. They will also need a copy of your property settlement agreement if you have one. This order, which must be formalized and signed by a judge, will inform your lender what you both receive and are responsible for throughout the divorce.
In addition, the terms of any child support or alimony agreements are crucial. If you’re able to provide proof of continued monthly payments, you may be able to increase your eligible income
If you are already divorced, your lender will look for the same information, but instead of a separation agreement, they will look for a divorce decree. For more information, it is best to contact a divorce lawyer in Boise as they will have a deep understanding of Idaho’s specific divorce laws.
How to Get Divorce Records for Real Estate
After a divorce procedure, the Court will issue a judgment detailing the distribution of property and assets between the parties and other family problems. An Abstract of Divorce Decree generally gets recorded in the Registry of Deeds for the real estate county because divorce judgments can be rather extensive and not merely describe the partition of the real estate.
From a divorce lawyer in Boise’s perspective, having a divorce order can help resolve many title difficulties.
Can I Pick My Real Estate Agent During Divorce?
While it is acceptable to sell a house without an agent in general, it is not a good idea if you are going through a divorce — the added stress is not warranted.
It is easiest to choose an agent who is neutral (agents who are friends and family can sometimes complicate the situation). The bottom line: you can pick your real estate agent, but make sure they understand the ins-and-outs of real estate and can make the transaction as simple as possible.
How Real Estate Agents help in Divorce Sales
When neither spouse can afford to buy out the other’s interest, divorced spouses must frequently agree to sell the family home. However, selling a house with a divorced spouse might be challenging.
An agent who has a history of working in these situations can be quite helpful. These experts can help couples avoid problems that could jeopardize the sale of their most valuable shared asset. Working hand-in-hand with a divorce lawyer in Boise, you can still get the most of your real estate even during divorce.
Does a Divorce Decree Transfer Real Estate?
The court issues a divorce decree that divides a couple’s marital assets as part of the divorce proceeding.
A divorce decree, in most situations, does not transfer property to or from your ex-spouse; only how the assets should get distributed is specified in the law. You and your ex are responsible for dividing the property according to the divorce decree.
Remember that while different assets get transferred in various ways, all real estate gets transferred by deed. Seek advice from a divorce attorney in Boise for more information.
How to Protect Inherited Real Estate during Divorce
If a loved one gave you an inheritance, you were most likely the recipient, not your spouse. However, if you are not careful with your inheritance, you may be forced to share it with your spouse if you separate or divorce.
If you received an inheritance before marriage, you would receive credit for the portion of the inheritance you possessed at your wedding. The growth of the inheritance may get excluded from your net family property depending on the language of the deceased person’s Will.
If you got your inheritance during the marriage, you could deduct the value of the inheritance from your net family property on the date of separation. That is, you do not share the value of any remaining inheritance on the date of separation.
Ultimately, suppose you truly want to safeguard your real estate holdings. In that case, you should speak with a divorce attorney in Boise who can evaluate the circumstances of your case and provide you with individualized guidance.
Conclusion
One thing should be clear: the process of dividing the real estate between former spouses can be expensive and complicated. As a result, it is prudent to retain the services of a knowledgeable and experienced divorce attorney in Boise, Idaho.
