Can you sell a house before the divorce is final in Connecticut? What is the procedure? What are the benefits and disadvantages of selling a home before or during divorce?
In this article, we will discuss the essential concepts. Connecticut is not a community property state. That means the marital property is not necessarily divided in a 50-50 ratio. However, the court will determine the best course of action. In this article, you will read:
- Is It Best to Sell House Before Divorce?
- Can You Sell a House During a Divorce?
- Can I be forced to sell my house in a divorce?
What Happens to a House During a Divorce?
When you own a property together, and you are planning to go on separate ways, you get three options:
- Sell the House Fast
- Buy the share of your spouse
- Keep the family home
The smartest solution is to sell the house and divide the proceeds. A contested divorce is an expensive option. Property issues can cost you thousands of dollars, and the process is dragged over the years. If both parties want to quit the relationship, then it is best to discuss the matter earlier. If there is a mortgage on the house, then it might be best to sell the home fast and divide the proceeds. Selling the property gives you the option to go on separate ways without worrying about the house.
Having said that, selling a house during divorce in Connecticut is not always a wise decision. You need to consider taxes, financial history, and the future. The solution varies from case to case. If you have been married for a long time and the mortgage is almost paid, then keeping the house might be a wise choice. Save the house as a family asset. Keep it for your kids.
When a mortgage payment is due, and you want to move on with your life, selling the house is a reasonable option.
Learn to Manage the Stress
Going through a divorce is one of the most stressful events of life. Add the task of moving homes, hiring agents, and selling a property. Let’s admit it. It is a lot to handle at once. You need help but maybe not the help of an attorney. Attorney fees make the divorce expensive.
The point is that if you both can agree on the division of the property, you both can save thousands of dollars. You can save money in two ways. You’ll reduce the lawyer fees plus when you both agree to sell the house; you can sell it at a reasonable price. However, you must be willing to settle the matter out of court because contested divorces (involving properties) can cost you $21,800 in Connecticut which is a considerable amount of money.
Why is Court Involvement Necessary?
It is understandable that you have to involve the court. Among divorcing couples, often one person wants to keep the house, and the other one wants to sell the property. Now, removing the name from the ownership documents is easy. One spouse can sign the quit-claim deed, and he/she will give up on his right of homeownership. However, we cannot say the same for mortgage documents. Connecticut is an “all-property” state which further complicates the matter.
Getting rid of the loan is not an easy job. The mortgage approval criteria will also create problems when you are planning to buy a house shortly. Since you both took the mortgage, it is rare that you both alone will get approved for a mortgage. That’s why it is critical that you settle the matter privately. Missing mortgage payments, abandoning the house, or letting the house go into foreclosure will severely damage your credit score and will make it even more difficult to qualify for a mortgage later in life.
In this regard, selling a house before the divorce looks like the right choice. Even if one of you wants to keep the house, you’ll need to refinance the loan. Pay the fees associated with refinancing, and that’s how you can keep the house. The only way one partner can keep the house is to refinance the loan.
Can I be forced to sell the house during a divorce? Yes, with the court involvement. The court will review the matter. If a person wants to keep the house but is not interesting in buying out the share or refinancing, then the other partner can obtain the court approval to sell the home.