Divorce and Real Estate

Unfortunately this day and time divorce is a “fact of everyday life”.  With divorce comes many complex issues.  One of them is the family home.  Generally practical considerations determine who gets the home, the terms of any buyout, or whether the house is sold to a 3rd party.  Some things you need to consider if you are facing this are as follows:

1-Immediately gather a group of competent advisors to advise you;

2-From the get-go, check the title and deed of your home so you know whose name or names belong on any listing agreement so a sale is legal;

3-Make sure as a divorcing seller that you know about the tax rules, enacted in 1997, governing the sale of a principal residence. These rules provide much more flexibility for sellers than prior law. Under the new rules, “if the couple’s house has been a primary residence for both of them for two of the last five years, each automatically receives a $250,000 exclusion.  If one of them hasn’t resided in the house for that period, yet the divorce decree specifies that the other be allowed to remain in the house, the nonresident is also allowed the exclusion.

Got a real estate divorce question?  Shoot me a line and I will try to get you an answer.