Divorce Real Estate Guide
Maximize Net Proceeds with a Bulletproof Plan
Navigating the sale of a marital home or secondary home amid divorce requires planning and preparations. In my experience, the below recommendations help facilitate a more successful sale. Please note this is not legal advice and you should always consult your attorney about these matters.
1. Decision-Making Authority: Clearly delineate in the divorce decree the authority for key decisions related to the sale, such as whether decisions are made jointly (50/50) or assigned to one party. This prevents delays and disputes during listing, negotiations, or closing.
2. Non-Cooperation Contingencies: Include provisions addressing scenarios where the petitioner or respondent fails to cooperate with the sale process. Specify remedies, such as court-appointed oversight, third-party mediation, or default decision-making authority to maintain momentum.
3. Mandatory Sale in Case of Mortgage Default: Incorporate a clause mandating that the property be listed for sale within a timely manner upon any missed mortgage payment. This safeguards against foreclosure and preserves equity for division. It is also helpful to look into any forbearance options you may have with your mortgage servicer in the event of non payment.
4. Cost Allocation: Explicitly outline responsibility for all associated expenses, including:
• Necessary repairs and preparations for sale
• Real estate commissions and closing costs
• Ongoing carrying costs (e.g., mortgage, taxes, insurance, utilities) Assign these either proportionally, to one party, or from sale proceeds prior to division, as agreed in the decree.
By addressing these elements upfront in the divorce agreement, parties can minimize conflict, reduce any further legal complications, and maximize net proceeds from the sale. Consulting with a qualified family law attorney and experienced real estate professional is strongly recommended to tailor these provisions to your specific circumstances.
