Depending on value and equity, the marital homestead is generally one of the largest assets to divide between parties in a Minnesota divorce. Amicable parties may consider selling their home before they are divorced. In general, when selling a joint home, the sale proceeds are divided. The mortgage will be paid-off, real estate or closing fees paid, and then the remaining proceeds are divided between the parties. There are many things to consider before selling a home prior to divorce and it is always best to discuss your options with an attorney.
Cooperation
To sell a house prior to divorce, both parties must be in agreement to sell. Throughout the home sale, the parties will need to communicate regarding listing price, showings, and offers. Parties will need to discuss who will pay for possible repairs or the logistics of the sale. If both sides are not on the same page, selling a home prior to being divorced may not be an option.
Finances
The finances of the parties can impact the decision to sell before or after the divorce. If a party is low on cash, selling the house prior to divorce can assist in paying for legal fees and alternative housing. If a party intends to re-invest their portion of sale proceeds into another real estate property, they should consult an attorney about the legal implications of purchasing while still legally married.
Real Estate Market
Divorces take time from negotiations to the court entering a judgment and decree. In fact, once a proposed judgment and decree is filed, it can take 30-90 days for the judge to review and sign it. If the parties intend to list in a real estate market that favors sellers during peak months, they may wish to sell their home during the divorce. This would allow them to make the most of their sale.
Non-Marital Claims
Non-marital claims can be tricky in a divorce. If both parties agree on the non-marital claims, the parties can negotiate and divide the home proceeds accordingly. If parties disagree about the claim, selling the house prior to the entering of the judgment and decree is unlikely. It may require more in-depth financial tracing and the disputed values may need to be resolved in court.
If you are contemplating selling your home before your divorce, consult with an attorney. Our experienced Minnesota divorce attorneys will walk you through your options and help you make the best decision in your unique case. Contact our office at (763) 783-5146 or by submitting a contact inquiry request through our website.