How a Divorce Affects Your House, Mortgage & Taxes
Segment 2
How a Divorce Affects Your House, Mortgage & Taxes
Barb, of the many emotional and financial challenges with a divorce, dealing with the real estate part of it can be daunting. What are the things home owners need to know about the house, the mortgage and taxes when facing a Divorce?
#1 – Get some non-emotional trusted advisors around you
If a lawyer is involved some times the divorce decree dictates what happens to the real estate.
In most cases its straight forward, but you need someone to evaluate:
The home’s value
How you hold title
What will happen with the proceeds when it sells
The strategy of what happens next, will you buy another home, will you rent, are you moving away, etc.
#2 The Four Basic Options
You have 4 basic options in the midst of a divorce as it relates to real estate:
Sell the house and divide up the proceeds per the divorce decree
Buy out your spouse
Have your spouse buy you out of the home
Retain ownership
#3 If you have to sell and want to buy another house, check affordability first
The Rise of Market Values Has Leveled Off – Could Be Seasonal – Great Time to Buy
Number of Sales Much Higher Than Previous Years
For every $10,000 in price, at the current low rates, a house payment increases by about $45 per month:
Bank Rate Mortgage Calculator
#4 Be Prepared for Your Destination
Home STILL selling quickly
Seller Off Ramps
You need to be prepared for your next destination:
To Get Your Offer Accepted:
Have Pre-Approval Lined up
Make Your Preferred Closing and Possession Dates Known
Make sure you hire an agent that know how to put protections in place for you…
You are listening to the Real Estate Voice with myself Barb Schlinker of Your Home Sold Guaranteed Realty, if you are interested in selling your and want to call Barb give her a call at 719 301 3900
We are talking Barb about Divorce and How it Could Affect Your House Mortgage and Taxes, Barb, What about the Mortgage and Taxes?
#1 The Mortgage Will get Paid off at closing.
No Need to Refinance
Unless 1 spouse keeping house
#2 How you hold Title:
Both in Title – Both Must Sign
Mortgage Gets Paid Off Regardless
#3 Taxes
Less Than 2 Years: Capital Gains = Yes
More Than 2 Years:
Profit up to $500K TAX FREE
Talk to Your Tax Professional
1) You are listening to the Real Estate Voice with Barb Schlinker of Your Home Sold Guaranteed Realty, if you are thinking of making a move call Barb at 719 301 3900 or visit BarbHasTheBuyers.com or if you want a free report the How A Divorce Affects Your House, Mortgage and Taxes visit: www.BarbHasTheBuyers.com and go to the GREEN BUTTON IN THE UPPER RIGHT CORNER TO DOWNLOAD ANY OF BARB’S FREE Reports
When we come back, we will be discussing: Selling a Rental Home – How to Handle the Issues and Keep Your Sanity
