Shelton "Lingo" Smith - BEST SELLING OPTIONS IN A DIVORCE

BEST SELLING OPTIONS IN A DIVORCE

Shelton "Lingo" Smith

Table Of Contents

Moving On

Be Prepared

Marital Settlement Agreement

The 80/20 Rule

Relating The 80/20 Rule To Home Selling

Creating Curb Appeal

Staging With Purpose

Upgrade With ROI In Mind

The Three D's

10. How To Market Your Home

11. Common Seller Mistakes

12. Avoid Costly Mistakes

13. Finding Buyers

14. Be A Power Negotiator

15. The Dos And Don'ts Of Negotiating

16. Bargaining Chips

17. Serious Considerations

18. Ending Thoughts

Selling Your Home our Home Because of Divorce?

I'm sorry to hear about your divorce and the hardship you may be going through at this time. I know it's difficult and stressful for all parties involved. Many home sellers in your situation have trusted me to help them get the most money for their homes. Here is how I can help make the process easier: • I help you look at all your options for selling or keeping your home so you can make the best decision to protect your best interests. • If you need help selling the home, please read this book. I created it specifically for people in your situation. It has lots of great tips to help you through the process. • If you'd like to know what your home is worth, I can put together a FREE Comparable Market Analysis for you. If there is anything I can help you with or you have questions, please feel free to contact me anytime. I look forward to hearing from you. FREE PREMIUM VENDOR LIST INCLUDED in t ED in the back of the book!

Shelton "Lingo" Smith EXP Realty Lingoexp1@gmail.com 407-602-5056

iii

About Shelton "Lingo on "Lingo" Smith Shelton "Lingo" Smith preferred to be called just Lingo because of the powerful meaning associated with the name. Love, Inspire, Nurture, Grow, Overcome. Something Lingo strongly believes in and demonstrates every day in his life. As a native of South Carolina, now calling Orlando, Florida home Lingo is a veteran dedicated to helping others lead inspired lives through volunteer work and real estate. Before entering real estate as a Real Estate Advisor, Lingo served in the United States Army and attended Full Sail University and aviation school at Epic Flight Academy. Although stationed at Fort Bragg, he served in 9 countries during my military career. The experience of serving the country and living abroad shaped him into who he is today. Lingo was taught at a young age that if you want something, you must work for it. So that's what he did. And he worked hard. Lingo was raised in Columbia, South Carolina, with one older sister. As a child, Lingo had aspirations of being a world-famous rapper. He never thought he'd stumble into the real estate industry in a million years, but you can only sometimes predict where or when you'll discover what you're meant to do in life. Lingo entered the real estate industry three years ago when the market was heating up with historically low APRs and everyone wanting to sell and buy. He knew this would be a brief time in the market, so he focused on what mattered the most during this period, building relationships and providing value to people because that matters the most, changing lives for the better, not just closing a quick and easy transaction. As his career advanced, Lingo found his stride working with Airbnb, new construction, veterans, and divorce clients. He's an expert in creative marketing, negotiations, and developing

beneficial strategies to complete a real estate deal.

Outside of real estate, his passions include photography, music, fitness, and a healthy lifestyle. Lingo aims to provide his clients with a high level of service and takes great pride in helping them achieve their real estate goals.

My Client Testimonials & R estimonials & Reviews Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me:

Elizabeth Colon Rivera

Went through this process with Shelton as our Real Estate Agent made the difference. He supported and provided us with confidence to keep going. Shelton was always making sure that our best interests were secure and preserved. I recommended him 100%+ to be your agent through a homeownership process!!! Thank you Shelton for everything!!!

Positive: Professionalism, Quality, Responsiveness, Value

Ann Cristalie Lacap

Buying a property in a place that is hundred miles away from your home is difficult, but Shelton is there to assist us in every step of the way, one text or call, you will get a response immediately which we are looking for a reliable realtor. Communication is the key! Thanks Shelton for assisting us, we are almost there and we can’t wait to visit to see our investment!

Carlos Morilla

Shelton was an amazing realtor and I saw him do amazing work for me and my family. Highly recommend him.

Geise Lacerda Adeniji

Shelton (Lingo) is knowledgeable, attentive and very professional. He exceeded our expectations!

Iggy Johnson

Shelton is truly determined to give his clients the best they deserve and the best experience possible. He’s knowledgeable and professional all while being fun and caring. I’m sure he’ll never disappoint.

Positive: Professionalism, Quality, Responsiveness

Harold Delcham

Shelton brings quick and accurate solutions to issues that can come up and really focuses more on client experience from start to finish. Makes the process smooth and the right winning and positive attitude. Keep it up!

Positive: Quality

Michael Brown

Shelton did more than I ask when it came to my search for a home. He always came with a positive attitude and was transparent with me every step of the way. For anyone that’s in need of a realtor Shelton is the one that will get job done without you breaking a sweat.

Positive: Professionalism, Quality, Responsiveness, Value

Thomas Hughes

Lingo is a great realtor who works to find exactly the right home for you. He is incredibly quick to respond to questions and concerns when you call. He also has an incredibly well rounded network of well priced, highly professionals for almost any scenario you might need from inspectors, to stagers, to lending, moving, and even post closing professional services.

vii

without giving exhaustive details, lingo handled both a listing and a purchase for me that took some turns that could have been horrible. my compliments to Lingo in how he handled the situation and brought.both deals to close . great job Lingo

Positive: Professionalism, Responsiveness

Alyssa Gabriela

One of the hardest working, most humble, dedicated and tell it how it is Real Estate Agents out there. If you’re looking for someone to give their all to you and your family Lingo is the one. He single handedly and seamlessly changed my life. 100/10 Recommend!!! ️️️️️

Khedra Joseph

It's very rare to meet someone in this industry who can maintain the balance of not being too serious that its just a business transaction and someone who really takes you on an adventure. Mr Smith was down to earth we were extremely comfortable and the experience was a really personal and enjoyable one. Mr Smith in my opinion is a top tier realtor and it was a pleasure meeting and doing business with him! I was so excited with the entire experience, his demeanor made him very easy to trust and relate to and he was very honest and helpful! It was more than a commission to him and I was definitely satisfied with the service and consultation he provided! Super happy for him and he comes with a 10/10 recommendation from me! :)

Positive: Professionalism, Quality, Responsiveness, Value

J.Harris The Producer

I would recommend Mr. Smith to any of my family or friends.

viii

He is very knowledgeable in his field and also very friendly professional and informational. He has a positive attitude and willing to go over and Beyond to make sure the customer satisfied. I appreciate his sense of urgency and attention to detail. Customer satisfaction it's obviously a priority to him. I felt he was someone with integrity and someone I could trust For making such a major like decision.

Positive: Professionalism, Quality, Responsiveness

Zarek Johnson

Lingo is a very open minded individual. Which allows him to help people in multiple ways no matter what problem you put in front of him.

JArthur Grubbs

Lingo is a hard worker and a great person overall! He dedicates himself entirely to his clients and puts them first! Always great working with him!

Positive: Professionalism

Nota Contento

Lingo really knew his stuff, I appreciate the patience!

Brandy Hill

Shelton has the drive, tenacity and positive energy to get deals done

Positive: Professionalism, Responsiveness

Omar Sanchez

Best realtor out there, very professional guided me through the whole process very well plus he made the process fun and exciting!

Tyshont Jenkins

Determined. And deeply invested into what he does. Don’t second guess it

Positive: Professionalism

Tony Watts

Amazing representation of Traditional American business.

Mrs. Yazmeen

Thank you for all your help!

Jimmy La-Mer

Positive: Professionalism, Responsiveness, Value

Alicia Johnson

Positive: Professionalism, Quality, Responsiveness

YCJ

Positive: Professionalism

Pam Johnson

Positive: Professionalism

Barbara Smith

Positive: Professionalism, Quality, Responsiveness

FREE PREMIUM VENDOR LIST!

I've experienced firsthand the work of numerous local contractors and professionals. I know which companies will produce the highest-quality work and which ones to avoid. Because I want my clients to have the most stress-free and successful real estate experiences possible, I recommend only the best professionals in various specialties — from home- staging experts to general contractors and electricians. I have personally worked with or verified each contractor endorsed in this book, and each one comes with my highest recommendation. Knowing you'll be in great hands, you can confidently hire any of these companies or individuals. In this section, I've provided you with a list of resources and their contact information so that you can have the ultimate home-selling experience. Loan officers • Ted Bogart- Future Home Loans | (407) 810-5670 • Aurthur- Home 1st Lending | (954) 701-6041 | Arthur@myhome1st.com • Erin- Supreme Mortgage | (410) 419-3321 | Erin.morris@supremelending.com • Harold- Movement Morgage | (267) 973-9966 | Harold.Delcham@movement.com • Tammy- Waterstone Mortgage | (407) 256-6203 | Tpowers@waterstonemortgage.com

Home Inspectors

xii

Closer Look Inspections | (407) 799-8376 or (407) 319-4608 Truview Inspections | (888) 246-3023 Inspectagator | (407) 319-4608

Home Appraisers

Sunbelt Appraisals | (407) 574-7091 Orlando Real Estate | (407) 716-2541

Homeowners Insurance

Amica- (800) 662-6422 Erie Home Insurance- (800) 367-3743 Chubb Home Insurance- 1-800-682-4822

Title Companies for Real Estate Transactions

Celebration Title Group- (407) 801-9776 Magnolia Closing Co of Florida- (321) 376-4818

Solar

WindMar Solar (407) 308-0099 SunVena Solar (407) 553-9584 Andrew Floyd- Apex Energy | 407-456-2184

Pool Care & Supply

All Pool Aquatics Group- (407) 295-4540 All American Pool-N-Patio Inc.- (407) 898-8722

Pool Installation

Paradise Pools By Design- (407) 777-7665 Presidential Pools & Spas- (407) 612-6168

xiii

Lawn Care

Virtuous Lawn Care- (321) 999-7105 LawnStarter Orlando- (833) 493-5070

Landscaping

Rolling Green Landscape Solutions- (407) 394-8515 Guardian Of Orlando Landscaping, Irrigation, & Maintenance- (321) 972-6950

Handyman

7 Pro-Services- (407) 598-7084 Orlando Handyman- (321) 437-1496 Sabah, “my handyman”- (904) 673-6672 Carte Blanche Handyman Services LLC- (407) 227-4044

HVAC Technicians

Cool Today- (407) 598-7678 Frank Gay Services- (407) 499-6284 Our Place Air & Home Repair- (407) 499-6268

Roofing

Tiger Roofing- (407) 337-0713 Certified Best Roofing- (407) 633-7209 Andrew Floyd- Apex Roofing & Restoration | 407-456-2184

Plumbing

Plumbing Today- (407) 633-5914 Frank Gay Plumbing- (407) 499-6671 Ark Plumbing Service- (352) 320-1814

xiv

Interior Designer | Stagers

Angela Neel Interiors- (407) 740-8989 Phil Kean Design Group- (407) 599-3922 Home Staging Pros LLC- (866) 599-5133 Marc-Michaels Interior Design- (407) 629-2124

General Contractor

Next Dimension Construction & Roofing- (352) 320-1337 Time Machine Contracting & Restoration- (407) 260-0704 McCree General Contractors & Architects- (407) 898-4821

House Cleaning

321 Maids- (407) 633-4494 Merry Maids of Orlando- (321) 617-5091 Annie Cleaning Services, LLC- (321) 263-9551

Carpet Cleaners

Sparkclean Solutions, LLC- (407) 633-4164 Zerorez- (407) 499-6191 or (407) 554-4430 “Dan Dan” The Carpet Man- (407) 792-0412

Accountants (CPA) & Wealth Managers

Ivy Fivey, “my personal CPA & bookkeeper”- (305) 389-3804 | iFivey@onestopconsultingshop.com Humberto “Highly recommended CPA wealth advisor” (386) 490-0681| hpj@consultingpf.com Phil Smart Wealth- “wealth manager, Estate planning, financial advisor” (386) 793-1505

Baby Sitters Kidz haven babysitting co LLC- (206) 618-0145

Google Search and go to the site- Care.com/babysitters

Home Security

SimpliSafe: Best basic DIY system Ring Alarm Pro: Best overall DIY system

Wyze Home Monitoring: Best budget DIY system Comcast Xfinity Home: Best professional system Vivint Smart Home: Best professional system with smart home automation

Real Estate Attorneys

Jeffrey D. Ostlie, P.A.- (407) 330-5255 Justin Clark & Associates (407) 499-6688 Andrew Doyle- (954) 632-2095 | andrew@sd-firm.com

Auto Body Shop Repairs

Precision Auto Body- (407) 384-0048 Willie's Paint & Body Shop- (407) 895-8850 M.T. Collision Center of Orlando, LLC., an Auto Body Paint and Repair Shop- (407) 284-8441

Concrete, Cement & Pavers

Big Pavers- (407) 928-1217 Red 12 Outdoor Designs- (321) 317-7423 Orlando Driveway and Paver- (407) 963-0679

Top New Construction Builders in Florida • New development communities “land pre-selected.” • Pulte Homes • Taylor Morrison • D.R. Horton

xvi

• Lennar Homes • Viera Builders

• Craft homes • M/I Homes • Ashton Woods • • Custom “land found by buyer.” • BEST OVERALL: Southern Homes • BEST CUSTOM HOMES: Ross Built Custom Homes • SUSTAINABLE PICK: E2 Homes • BEST FOR FIRST-TIME BUYERS: KB Home • BEST FOR MODULAR HOMES: Clayton Homes Caterers & Party Planners

Foodie Catering (407) 704-6908 Table Top Catering (407) 710-8671 Pearson’s Catering- (407) 259-8404 Chiropractors The Joint Chiropractic- (407) 289-1055

Kaizen Chiropractic Solutions- (407) 613-5800 Lake Nona Family Chiropractic- (407) 658-7700

Computer Care & Network Servicers

Lion Tech- (407) 842-8822 Tim Can Fix It- (407) 867-2083 Webcom IT Solutions (407) 873-1579 Cyber Command - Business IT and DevOps Services- (407) 587-0089

Dentists

Elite Dentistry- (Orlando) (321) 415-7767

xvii

Park Smiles Dentistry (Winter Park)- (407) 645-4645 Modern Smiles Dentistry (Lake Nona)- (407) 985-4401

Dermatologists

Advanced Dermatology- (407) 745-1966 Orlando Dermatology Center- (407) 538-3855 Pure Skin Dermatology & Aesthetics- (407) 900-2580

Fencing Companies

Florida Quality Fence- (407) 730-6800 Superior Fence & Rail- (407) 232-7009 SUNNY STATE FENCE LLC.- (407) 776-8313

Flooring Companies

Campbell’s Flooring Inc.- (321) 228-1227 A.B. Floors & Restoration- (407) 513-4787 Express Affordable Flooring LLC- (407) 633-4525

Furniture Stores

Rooms To Go- multiple in Orlando IKEA- 4092 Eastgate Dr, Orlando, FL 32839 Havertys Furniture- Outlet 4545 E Colonial Dr Ethan Allen- 4049 Conroy Rd, Orlando, FL 32839 Scan Design- 4045 S Kirkman Rd, Orlando, FL 32811 CITY Furniture- 4779 Vineland Rd, Orlando, FL 32811 Leaders Furniture of Orlando- 2222 E Colonial Dr, Orlando, FL 32803 American Freight Furniture, Mattress, Appliance- 2193 Viscount Row, Orlando, FL 32809

Garage Door & Repair

xviii

Armstrong Garage Door- (407) 422-7117 Excellent Garage Door Inc.- (407) 485-1787 Quality Garage Door Services Orlando- (407) 895-0022

Music (DJ for party & event services)

Dj Vic “my personal Dj”- (407)446-6532 Go to www.pressplayent.com specifically for selecting a Dj for weddings

Gyms & Fitness Trainers

Schneider- SoFit Personal Training “my trainer” | (321) 948-4728 Atlas Performance Training LLC- (321) 300-6867

Orangetheory Fitness- (407) 995-6220 Transform Your Body- (321) 800-6038 HIIT FIT GROUP- (407) 577-9995 Anytime Fitness- multiple locations

Crunch- multiple locations Esporta- multiple locations

Hair Stylists

Call me for recommendations.

Home Warranty Companies • American Home Shield: Our pick for overall value most customizable • Liberty Home Guard: Most customer-friendly • Select Home Warranty: Most budget-friendly • America’s First Choice Home Club: Most coverage options • First American Home Warranty: Best appliance coverage • Cinch Home Services: Best Workmanship xix

• Old Republic Home Protection: My personal home warranty choice Movers (local & national) Hello Movers LLC- (813) 524-3929 All My Sons Moving Orlando- (352) 320-1678 Teleport Moving and Storage- (407) 633-4364 College Hunks Hauling Junk and Moving Orlando, FL- (407) 633-4342

Painter

Sueep Painting- (424) 625-5605 Connelly Painting- (407) 499-6968 Five Seasons Painting- (321) 290-9888 PAINT CORPS of Kissimmee- (407) 499-7773

Pest Control Companies

Dave's Pest Control- (407) 633-4789 Fenix Pest Control, Inc.- (407) 519-2444 Orkin Pest & Termite Control- (407) 633-4571 Rowland Pest Management, Inc.- (407) 337-0720

Surveyors

Title Survey Services, Inc.- (321) 263-9933 Epic Surveying & Mapping, LLC- (321) 804-5687 Ireland & Associates Surveying Inc- (407) 678-3366

Property Management-

American Dream Homes, Inc- (407) 382-8100 Mila Realty Orlando Property Management- (407) 569-8899 Ashley Herring- Verandah Properties (Lake Nona) | (407) 620-0675 xx

Veterinarian

SODO Veterinary Hospital- (407) 841-3407 Animal Medical Clinic of Orlando- (407) 898-6261 Animal Veterinary Hospital of Orlando (407) 855-7387 Senior Living Communities (Convalescent Homes & Assisted Living)

Somerby Lake Nona- (321) 236-6977 Gentry Park Orlando- (407) 505-6684

Locksmiths

The Affordable Locksmith- (321) 804-3527

Videographers & Photographers-

Gio- Central Media “my videographer” (206) 687-0081 Jay G- Films 2 Reels “My videographer” (334) 707-3066 Micah Paull- Consecrated films “My Photographers” (978) 751-4427

Rain Gutter Installation & Repair

Orlando Seamless Gutters- (407) 637-7332 Southern Image Gutters, Inc.- (407) 535-0529 Gutter Masters of Central Florida Inc- (407) 451-9644

Electricians

All Electric- (407) 598-7672 Ace Solves It All - Electric | (407) 550-5777 Frank Gay Services- Electrical | (407) 633-4084

xxi

Pressure Cleaning

The Pressure Guys- (407) 633-5301 The Pressure Specialist- (407) 598-6962 TRT Pressure Washing & Window Cleaning- (407) 604-8303

Tax Exchange (1031 Tax Exchange Consultants/ Accommodators)

1031 Exchange Replacements Property Experts- (888) 944-6289 IPX1031 - Investment Property Exchange Services, Inc.- (904) 826-7140 Wedding Planners Runway Events- (321) 236-0757 Elite Celebrations Florida Llc.- (786) 329-2599 Olive and Moss Co. Event Planning & Interior Design Orlando- (954) 716-3496

xxii

CHAPTER 1 Moving On

Divorce is not easy. Even the most amicable separations are plagued with disappointment, lack of communication, and failed expectations. In the best case scenario, two people who are dissolving their union will work together to resolve their differences productively and part ways, hopefully without drawing blood. Unavoidably, though, during the process, you and your spouse’s emotions will fall prey to a myriad of changes as the marriage, family, and shared assets are legally separated. Adding to the stress is the sale of the family home, which is typically the largest asset of the marriage. This can evoke tremendous emotion: sadness, anger, sentiment, and disappointment, to name a few. The combination of the stresses of the divorce with the sale of the family home requires patience, diligence, and great personal fortitude. With the help of seasoned, experienced professionals — such as attorneys and real estate agents — divorcing couples can successfully move through this challenging phase of their lives and on to their future. The phrase “and this, too, shall pass” sounds like a bad cliche in a moment like this, but it's one worth keeping in mind. No matter how bad “it” gets, it will eventually pass. The divorce will become final. The house will sell. The children will adapt, and life will go on. This is where that personal fortitude will come in handy. Decisions regarding the family home are not only emotional, but mired in legal maneuvers and decisions as well. Divorce laws vary from state to state, so licensed legal counsel is your best source of information on how to protect both parties’ interests.

Many questions arise when trying to sell your home during a divorce. What needs to be done to ensure a quick and profitable sale? Who will choose the Realtor®? When is the best time to list a home? Who bears the financial responsibilities of the sale? You can proactively allay your fears and clear up misconceptions by doing your due diligence and researching what to expect throughout the selling process. Every divorce has a unique set of circumstances. This book is not intended to be a legal guide or to dispense legal advice but to provide you with a source of information regarding the sale of your marital real property. Becoming familiar with some real estate terminology and options will give you a better understanding of your situation and confidence that, indeed, “this too shall pass.” Some states are known as “community property” states and others are defined as “equitable distribution” states. Community property states follow the rule that all assets acquired during the marriage are considered “community property.” There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska is an opt-in community property state that gives parties the option of making their property community property. The remaining 41 states follow the laws of equitable distribution, which means property acquired will be divided between the spouses in a fair and equitable manner. The court determines who receives what based upon a variety of factors, such as the relative earning contributions of the spouses. In community property states, on the other hand, all income and assets earned or acquired during the marriage are considered to be equally owned. This applies to all debts, no matter who created the liability. In a divorce action, these will be divided equally.

In addition, there are mutual court orders that automatically protect marital properties. An automatic temporary restraining order prohibits spouses from selling, transferring, or borrowing against property when a divorce is filed. Again, any orders should be discussed with your attorney, as this protection varies from state to state. The family home is typically a couple’s most valuable joint asset and must often be sold in order to equally distribute its value between the two spouses. Therefore, it is vital for you to understand the relationship and difference between a mortgage deed and a property title. Mortgages are conditional legal agreements made for the purpose of buying a property/home. The lender’s security interest is on record when the title is registered. The mortgagee (lender) may obtain a foreclosure order to take possession if payments of the debt are in default. A property title refers to ownership of that property and the right to use it. A person on the title can transfer ownership to another party but cannot transfer more than he or she owns. Some divorcing couples utilize a quitclaim deed, which transfers ownership from one spouse to another, but it does not transfer financial responsibility. One spouse may transfer title of the home to the other and consider himself or herself free from the financial responsibility of the mortgage payment, but this is not the case. The loan payments are the responsibility of the parties on the mortgage. In order to change the names on the mortgage, one spouse must obtain financing with which to buy out the other. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal adviser. The intent of this book is to provide information regarding the sale of your home within the framework of a divorce; it is not intended to provide legal counsel or advice.

CHAPTER 2 Be Prepared

Step one in successfully handling the disposition of the family home in a divorce is to have a clear understanding of your financial standing. Knowing your precise financial situation throughout the emotional turmoil of divorce will keep you from making snap decisions that could severely impact your financial position. It is crucial to know who bears legal financial responsibility for making the mortgage payments. If both spouses are listed on the mortgage agreement, they are equally obligated to the lender, whether or not their name is listed on the property title. Removing a party from a property title does not relieve the financial obligation of that party. Two signatures on the mortgage means two responsible parties. This also includes the homeowner’s insurance policy. It is important to know who is the beneficiary and if both parties are insured. For the previously stated reasons, it is critical that you collect and immediately provide to your lawyer all information regarding your home insurance, property taxes and liens, mortgage and marital debts, and marital assets. The more prepared you are to face your financial future, the more secure you will be moving forward. Knowing where every dollar has to go will help you make better decisions and avoid adding undue additional stress to the already uncertain future that accompanies divorce. Knowing where you stand financially greatly influences your decision to keep, sell, or buy out the family home. There are many considerations for each option, and they all require a significant amount of due diligence, financial planning, and difficult 4

decisions.

Affordability and objective forethought are the keys to your decision-making process. Poor decisions can affect you and your former spouse, long after the divorce is finalized.

KEEPING THE HOUSE

When divorcing couples have school-age children, they often decide to allow one spouse to remain in the home to avoid disrupting the children’s routine, school attendance, and social relationships. This can be accomplished with written agreements between the spouses. Equitably allocating home expenses and mortgage payments by percentages or mutually agreeing on the delegation of financial responsibility will allow your family to focus on what matters most: the children. A clear-cut, signed agreement drawn up by a mediator will help avoid contention surrounding responsibility for the maintenance, expenses, and future sale of the family home, whether it be to the spouse who remains in residence or an outside buyer. This is why it is important to know your financial position and how much each spouse can contribute. If one spouse fails to make their share of payments, it can negatively affect both parties’ credit ratings and complicate the later sale of the home. If each spouse has provided appropriate evidence that they have sufficient resources to maintain this type of arrangement and is willing to participate in the agreement, this may be the right path. Some couples choose to reside in the home as roommates for different reasons. It might be that neither spouse is able to afford both their share of the home and a new residence, or it could be to decrease the abruptness and difficulty of the children’s transition. If, later, one leaves, that person will have increased financial obligations in finding a new place to live, so give serious

thought before choosing this option.

Be aware, though, that some spouses are tied to the home, not only by their children but by their own emotional investment. The house represents stability and a happier time and provides shelter from the trauma of divorce. In keeping it, they may feel more in control of their situation. Some may think that keeping the home makes them the “winner,” despite the financial hardship it can bring. It is difficult enough to deal with divorce without later learning that unforeseen or unbudgeted expenses have crept in and taken a big bite of an already tight budget. Be realistic about what is affordable.

SELLING THE HOUSE

For most couples going through a divorce, selling the house is the best solution. Selling a home under any circumstances takes a great deal of time and effort, so the addition of the emotional stress of divorce can make the task overwhelming.

LEGALITIES

The termination of a marriage requires the division of real property. Marital property belongs to both parties, regardless of whose name is on the title, and each party is entitled to their equitable share. Some couples have a legal agreement beforehand, 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 regarding 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 may be that neither spouse is in a financial position to singularly carry the full financial burden, and neither may be 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 once was and is no more. The good memories the home represents are now tainted by the unhappiness and pain of divorce. No matter how strong sentimental value may be, often the best option is to sell the house and move on. That way, both spouses get some money to make a clean break and start fresh. Once you’ve decided to sell, there is a long “to-do” list — a list that is difficult under the best of circumstances and only made more difficult with the added emotion of divorce.

LIABILITY

The liability of keeping a home may be the best reason to sell. There are various ways to keep a house with one spouse remaining and the other departing, but they all carry risks and challenges. An equity buyout occurs when one spouse keeps the asset, and, in exchange, compensates the other for his or her

share of the equity.

THE BUYOUT

If one spouse is in a financial position to remain in the home, it may be easier to buy out the other’s share of the property, which would entail refinancing the home. The real challenges come in working out the details. There could be disagreement about the selling price or the appraisal value. Or, the equitable division of the property may not meet expectations. Other questions that arise include the possibility of giving up marital property rights in exchange for other assets, like investments. The ex-spouse may lose out on future appreciation of the house. It is crucial to know that questions like these will arise when it comes to the division of property in a buyout situation and that you have to be prepared to address them. Refinancing the home in one spouse’s name means not only settling the previous loan but paying the selling spouse their portion of the buyout. As an example, if the principal balance owed is $100,000, and there’s another $100,000 in equity, one- half of the equity ($50,000) would be due the selling spouse, and $100,000 would be required to pay off the principal. The refinanced loan would have to be at least $150,000. If the house value has appreciated, who is entitled to the equity? What if the property is appraised lower than the current loan? All scenarios must be considered before deciding on a buyout. Again, knowing your financial standing before filing for a divorce is paramount.

CO-OWNERSHIP

If you or your spouse want to keep the house and buy out the other, but need time before this can be accomplished, co- ownership is a possibility. However, maintaining a clear channel of communication with the ex-spouse is a major part of co- ownership and one of the most difficult to achieve because it

requires a lot of mutual trust, something that is typically lacking in most divorce scenarios. The goal is to move forward, so any concessions made between the spouses benefit not only both parties but especially the kids. Maintaining a civil, business-like relationship in front of your children will help them maintain stability and keep them from moving away from their home, when they’re already adjusting to a lot of change. If one of the spouses can occupy the home with the children and make the mortgage payments until they can manage a buyout and become the sole owner, it’s a win- win. The drawback to this type of arrangement is the negative consequences if the spouse in residence defaults on mortgage payments. Both parties are still responsible, and missed payments will affect both spouse’s credit scores. Moving forward with a new life can be tricky in a co-ownership agreement because consistent communication is necessary, and that isn’t always (or even usually) easy for divorced couples. House payments, insurance premiums, utilities, and necessary repairs are guaranteed financial obligations. What if the utilities are shut off due to nonpayment? What if the home heating and air-conditioning system terminally fails? What if you moved two hours away and your ex-wife needs you to help with a fallen tree because she can’t afford to pay someone to dispose of it? What if the resident spouse has to move out because s/he cannot afford to stay? What if the resident ex-spouse files bankruptcy and risks losing the house? These are all very real possibilities. Co-ownership must be considered carefully, and a knowledgeable attorney dedicated to protecting your family’s well-being will be your best source for guidance on the complexities that may arise. An agreement can be created to address all the obligations mentioned previously and protect both parties at the same time.

No matter the option you choose, the mortgage must still be paid. Selling is the only alternative if neither of the spouses can afford the home on a single income. A short sale is possible if the home is going into foreclosure. You can come to an agreement with your lender to sell the home for less than is owed. Divorcing couples with good credit may find more favor with their mortgagee to obtain permission for a short sale. Walking away from your home and mortgage is not tolerated by the courts. The lender will add to the complications of your divorce by taking legal action to receive the remaining balance. You can find yourself in court if you or your spouse is uncooperative or is demonstrating an obstructionist attitude, which will cost more time and more money. Many divorcing couples end up using up what equity they had in their marital property on legal and court fees. Refusing to sign papers to sell the home or refusing to help pay for the mortgage will give a judge no other option than to order the home sold on the court’s terms. When a divorce action is filed, an automatic temporary restraining order can be issued to prevent spouses from selling or borrowing against marital property. Discuss this option with your lawyer to make sure your stake in the marital property is protected. Less than one-third of divorces end up in court due to disagreements over property division, but if you’re in that unfortunate one-third, going to trial doubles the cost of the divorce. An average divorce costs $11,000 if settled out of court. That amount will at least double if you have to go to court for resolution, which will take a serious bite out of your home’s equity. Many divorcing couples who want to limit legal fees as much as possible, as well as the time it takes to settle, choose to sell their home. Surveys show that couples who resolved their property

issues without court intervention completed the divorce in under a year. Those who could not agree and went to trial had to wait an average of 15 to 16 months. Some states require divorces to be resolved within a year, but dockets are full in most states, which causes long wait times for a divorce trial. While you’re waiting for the trial date, the mortgage still has to be paid, as well as utilities, insurance, and property taxes. The rest of this book will expand upon the benefits of marital agreements that help sell the home, the importance of having realistic expectations regarding the value of your home, and how choosing a Realtor® who has experience working with divorcing couples may be your greatest asset in the sale of your home.

CHAPTER 3 Marital Settlement Agreement eement

One of the most productive methods for couples to move forward with a divorce and on with their lives is to disconnect emotionally and handle the sale of the home in a businesslike manner. Because the marital home is usually the greatest asset in a marriage, it is also the greatest liability. You must give a lot of serious thought to securing settlement terms that protect both parties, especially the spouse who is departing the home. When you enter into your marital settlement agreement, your lawyer should specify who is financially responsible for the mortgage, the homeowners insurance, utilities, and upkeep of the marital home. If the spouse occupying the marital home is responsible for listing, showing, and selling the home, the other spouse may be obligated to pay part or all of the mortgage, as well as contribute to the upkeep of the home. If the occupying spouse shows little effort in getting the house sold, the marital agreement should provide a timetable for the sale of the home. It is important for the marital agreement to include provisions outlining the steps to be taken if the house cannot be sold within a specified time or if one spouse fails to meet any financial obligations. Consult your legal adviser for contingencies that are specific to your situation. Additional expenses may include repainting, landscaping, or replacing appliances or carpeting. There should be clear direction on how to handle the unexpected while in the process of selling the home — for example, if a home inspection reveals a cracked foundation or termite infestation. Ex-spouses sometimes agree to a fixed amount of time to share expenses prior to the sale of the home. Quick decisions can be damaging, 12

especially when it comes to co-ownership or one spouse occupying the home until it sells. By keeping emotions at bay while making important decisions and focusing on what needs to be done to sell your home, you and your ex-spouse can move on faster.

REASONABLE AND REALIS LE AND REALISTIC EXPECTATIONS

Since the home is one of the most valuable marital assets, dividing the property between a couple in the throes of divorce can be a major source of contention. If you have other properties, such as a vacation home or investment properties, those will also have to be assessed and assigned a monetary value. In order to divide equitably, or equally, as the case may be, you will need to know the precise value of your property. When it comes to the marital home, there are several common valuation methods available to determine the value. These are used in property settlements and may differ from what you perceive as your home’s worth.

COMPARATIVE MARKE TIVE MARKET ANALYSIS

Your real estate agent will provide you with a comparative market analysis, or CMA. This is an in-depth review of your home’s worth in the current market, based on the recent sale prices of comparable homes. Any differences, such as the size of the lot or value-added items like a swimming pool, are taken into consideration and the value adjusted accordingly.

BROKER PRICE OPINION

The broker price opinion (BPO) is another type of estimate, produced by a real estate agent in response to a request from a mortgage lender.

A few years ago, when real estate sales around the country were at their peak, lenders found it difficult to handle the staggering number of transactions. The BPO concept was born. It is less elaborate, and thus less costly, than an appraisal, but more involved than a CMA. There are two kinds of BPOs: drive-by and interior. If the agent has access to the interior of your home, you will obtain a more in-depth and accurate evaluation. No matter your circumstances, you’ll obviously want top dollar from the sale of your home. Therefore, it is crucial to get a reliable evaluation generated by a Realtor®, who will stand by his/her appraisal throughout the sale process.

THE COST APPROACH

The cost approach is based upon what it would cost to reproduce your home new, minus depreciation and obsolescence. Would any person buy the property for a cost greater than the value of the land and a structure with equal appeal?

PROFESSIONAL APPRAISAL

A professional appraisal for the valuation of marital property is required when a court is dividing the couple’s assets. Some states require a judge to independently determine the fair market value. There are some circumstances in which a judge may consider information provided by a spouse. You should understand that when a valuation is determined, it may not include latent cost-related issues. If there are plumbing problems under the foundation or the structure has been compromised by a termite infestation, these situations will affect the sale price. It is advisable to have a home inspection conducted in an all-encompassing examination of the condition of the home. It will be invaluable in discovering the universal condition of the home.

The inspection will cover electrical wiring, plumbing, roofing, insulation, as well as structural features and could uncover issues invisible on the surface. This will give you a realistic idea of what to expect when you sell your home. Most buyers require home inspections to eliminate any questions regarding your home’s integrity. Typically, a buyer will order and pay for a home inspection. However, doing this yourself in advance offers two advantages: 1. Both spouses are made aware of any underlying problems with the home, and arrangements can be made to split the cost of repairs. 2. Buyers who are interested in the home will have an additional layer of security in knowing the integrity of the home, without having to put out the money themselves for the inspection. It may cost you a few hundred dollars upfront, but buyers appreciate having this information available, and that goes a long way toward building a relationship of trust and willingness to do business.

FINDING THE RI G THE RIGHT REAL GHT REALTOR®

Choosing the right listing agent is important. As obvious as this might seem, selecting the best real estate agent for you can be difficult. Most people personally know a real estate agent, but don’t jump headlong into working with friends who 1) may not be experienced at working with couples in the midst of divorce or 2) may not be impartial to both spouses. There are Realtors® who focus specifically on helping people who are going through a divorce. They are known as Real Estate Divorce Specialists. These agents have been thoroughly trained

in legal and tax aspects of divorce. If the house is handled improperly during the divorce, the result could be that one or both spouses end up ineligible to qualify for a mortgage for many years. A real estate professional experienced in the divorce niche can provide clients with step-by-step guidance to protect themselves legally and financially. What defines a “good” real estate agent? That often depends on your particular circumstances. For someone selling a home during a divorce, it means finding someone with experience dealing with divorcing couples and who is an expert negotiator — not only between seller and buyer, but between seller and seller, who are not always on the same page or even on speaking terms with each other. Some Realtors® prefer not to take on listings with divorcing couples because the process is often more complex and labor-intensive than a standard real estate transaction. Not every real estate agent is equipped to handle the complexity of property issues that come with the division. Most of all, you have to like your agent. You might be spending a lot of time with him or her over the next few months. This has to be a person who is calm, cool, and collected, is sensitive to the circumstances, and can move your home, no matter the current market. He or she must relate well with both spouses and cannot show any bias or judgment. You want someone whom you feel listens to your priorities, is patient with the situation, and can be trusted to deal fairly and communicate fully with both parties. The best Realtor® is one who will work effectively with both parties, despite conflicts of interest and strong emotions coming from both sides. An experienced Realtor® won’t run at the first sign of an emotional outburst, shy away from awkward meetings between soon-to-be exes, or hold exclusive meetings with one party over the other and will instead provide a neutral ground for interactions. Be sure your Realtor® keeps the details of your divorce out of sales conversations, since some buyers equate

divorce with “desperate to sell” and will attempt to leverage that information in negotiations to get a lower price. You don’t have to seek out a certified Real Estate Divorce Specialist, but when you look for a Realtor®, don’t be shy about asking questions about their experience working with divorcing couples. You must be able to wholeheartedly trust your Realtor®. Listen to how they talk about previous clients. This is usually an accurate indicator of how you will be treated. Look for discretion and empathy. Most Realtors® work with buyers and sellers who don’t know each other, not with divorcing couples who may or may not be adversarial with one another. The best Realtor® for you will be impartial and understand the complex nature of divorce. Make sure you pick a good listener. No two divorces are alike, and your Realtor® should be able to help sell your home without taking sides. Some Realtors® are trained in mediation. Since you and your spouse will both be involved in the selling process, look for an exceptional communicator who knows how to keep everyone on the same wavelength. Suitable agents are focused on being objective and are unaffected by emotional outbursts from either party. Not only do you want a Realtor® with divorce experience who is a good listener/communicator, you also want one who is genuinely concerned about your situation. They should show an interest in helping both parties experience a quick and strong rebound in their finances. They should also be knowledgeable about the local market, in order to price your home correctly from the start.

Here are some traits to look for when hiring an agent.

• Listing price to sale price ratio — What is their success rate for sales?

• Current — Is the agent up-to-date with the latest housing trends so he/she can serve you effectively? • Connected — Does the agent belong to a network with the necessary contacts to assist in every phase of the sales? This network should include home inspectors, quality service-people, other brokers, and county officials. • Knowledgeable — Is the agent familiar with the current market and able to price your home strategically? Does s/ he know the unique features of your neighborhood to distinguish your home from the competition? Does s/he know what to highlight in your area to attract buyers? • Organized — An agent must pay close attention to your specific needs, communicate well, and be quick to follow leads. • Personable — An agent who is sincerely interested in helping you will go the extra mile with a smile. They must be able to sell themselves to you, as well as sell your home to a buyer. • Passionate — Some agents treat their job like a hobby or just a way to earn extra income. Find an agent who is passionate about what they do and loves their job. • Tenacious — Successful agents possess a strong work ethic. They are efficient and take advantage of time-saving tools that help sell your home. • Honest — Professional real estate agents build their reputation on high standards of business practices. • Self-motivated — Real estate agents are commission-only business people. Successful agents work hard because what benefits their clients benefits them. • Creative — Sometimes it takes creativity to properly showcase a home, develop engaging content, and

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119