which provides a simple solution to property division. Some couples are able to use mediation to divide assets, but others are unsuccessful in negotiating equitable terms and must turn to the courts to rule on the division of their real property. Again, this book is in no way a substitute for professional legal advice. Always consult your attorney about the division of real property. Many couples enter into a mortgage based upon the expectation of a two-salary income that generates enough money to cover the monthly mortgage payment, upkeep, utilities, and unexpected repair. It could be that neither spouse is in a financial position to singularly carry the full financial burden, and that neither is in a position to buy out the other. Preventing default on the mortgage is the most common reason divorcing couples choose to sell the family home. Monies budgeted for the upkeep of the home, property taxes, home insurance, home security, and house payments may or may not still be available when couples split. Couples who sell their homes before divorce have the advantage of the capital gains tax exclusion of $500,000. A divorced person selling a home receives 50% of the tax break. There are other tax benefits available when substantial equity growth has occurred over years of owning a home. These are best discussed with your lawyer or tax professional to ensure you make financially sound decisions about when to sell your home.
THE EMOTIONAL SIDE OF SELLING YOUR HOME
If the marital home has been the hub of happiness and family life, it may turn out to be a constant reminder of what it once was and is no longer. The good memories the home represents are now tainted by the unhappiness and pain of divorce. No matter how strong sentimental value might be, often the best option is to sell the house and move on. That way, both spouses receive some
125
Powered by FlippingBook