Selling a house during divorce North Carolina

Learn what you need to consider when its time to sell your house during a divorce in North Carolina. Tips on how to handle a court ordered sale, pro’s and con’s of selling before or after divorce, plus much more.

Table of contents

1. Selling a house during divorce North Carolina
2. Equitable distribution during divorce North Carolina
3. How to sell a house during divorce North Carolina
4. Advantages of selling property before divorce settlement North Carolina
5. Cautions of selling house after divorce North Carolina
6. Court ordered sale of house in divorce North Carolina: What are my options?
7. Tips for selling your house during divorce North Carolina
8. Final thoughts: Selling a house during divorce North Carolina

Selling a house during divorce North Carolina

Divorce can often spark intense disagreements, especially concerning the fate of the family home. This residence, once purchased jointly as a married couple, typically stands as a cornerstone of your financial portfolio, carrying substantial emotional weight. The decision-making process surrounding it is intricate: who retains ownership? Will the children maintain residence? How are mortgage payments handled?

In this article we will explore considerations for selling a house during divorce in North Carolina and strategies for scenarios where one spouse objects to selling.

Equitable distribution during divorce North Carolina

First and foremost, it’s important to realize that North Carolina adheres to the principle of “equitable distribution” when dividing marital assets. This principle does not strictly entail a 50/50 split; rather, assets, including businesses and houses, are apportioned in a manner deemed equitable by the court.

However, this law is only applicable when a divorcing couple cannot agree on how to divide their own property. Otherwise, under the equitable distribution statute, marital property must be divided equally between the spouses. In such a scenario, each spouse would receive an equal share of 50% of the marital assets, including the profits from selling a house during divorce.

How to sell a house during divorce North Carolina

When it comes to dividing marital assets, opting to sell the house often proves to be the most logical choice. Following a divorce, maintaining residence in the same house is typically undesirable for both parties. However, the financial burden of retaining the property alongside establishing a new household might be overly burdensome. So what options are available to you when considering what happens with the marital home in a divorce?

Buy out your spouse’s share

One approach involves one spouse purchasing the other’s share. The initial phase of this buy-out process typically involves a professional appraisal. Despite North Carolina’s adherence to equitable distribution laws, understanding the home’s value serves as a starting point for negotiations between spouses.

Several factors play into determining the buy-out price, including the home’s equity and each spouse’s financial contributions towards the purchase and maintenance during the marriage.

The spouse interested in buying out the other must have access to funds not subject to marital property division. Moreover, they must demonstrate the ability to sustain the mortgage on a single income. Refinancing the home may be an option as part of the buy-out process.

Co-ownership after divorce

If both parties wish for their children to continue residing in the home but neither spouse can financially manage a buy-out, they may choose to remain co-owners. In such cases, spouses establish a legal agreement outlining the division of mortgage payments and responsibilities for repairs.

Incentivize the reluctant spouse

A spouse who opposes selling the house, declines a buy-out, and is unwilling to negotiate might respond to financial incentives. In such cases, the spouse seeking to sell may offer additional funds from their portion of the proceeds. Alternatively, they could propose exchanging another asset, such as a vehicle or vacation property.

In a high-asset divorce, spouses have the opportunity to negotiate for the family home. For instance, one spouse may opt to retain a vacation property or preserve their pension. Every asset within the marital property portfolio is open to negotiation. North Carolina statutes mandate an equitable distribution, which doesn’t necessarily mean an identical split, of marital assets and debts.

Sell the house and split the profits

Many divorcing couples conclude that retaining the house isn’t feasible or logical. While typically, one spouse stays in the residence during divorce proceedings, collaboration is crucial for preparing the house for sale. The proceeds from selling the house fall under equitable distribution. Some couples opt to divide the profits equally after settling all debts.

This will additionally furnish the divorcing couple with sufficient cash to settle outstanding debts, compensate real estate agents and divorce attorneys, and facilitate the purchase of new residences.

Advantages of selling property before divorce settlement North Carolina

Selling property before divorce settlement may offer financial benefits. Through the Home Sale Tax Exclusion, married couples selling their home can avoid paying capital gains taxes on profits up to $500,000. For single homeowners, the exclusion limit is $250,000. To qualify for this exclusion, the individual must have resided in the home as their primary residence for at least two of the past five years.

Cautions of selling house after divorce North Carolina

Joint ownership of the family home with a former spouse exposes you to potential legal and financial complications. If the party responsible for mortgage payments falls behind, it can adversely affect both parties’ credit scores.

Furthermore, upon selling the property, the individual who hasn’t used the house as their primary residence for at least two of the last five years may not qualify for the home sale tax exclusion. Consequently, they may face significant capital gains tax implications.

Court ordered sale of house in divorce North Carolina: What are my options?

Sell with a real estate agent

Selling with the assistance of a real estate agent is going to be the most common method of a court ordered sale of house in divorce. Real estate agent have the knowledge, expertise and resources to get top dollar for your home which can be crucial in the course of a divorce settlement. With resources like the MLS at their disposal, real estate agents can get your house the most exposure to buyers and they will help you navigate the nuances of selling a house during divorce. They can also be a good mediator between you and your spouse to facilitate negotiations.

Sell to a cash buyer

Couples seeking a quick sale of their family home should explore options like real estate investors and cash home buyers. These buyers possess the financial means to present rapid cash offers, enabling both spouses to access their equity swiftly and move forward without delay.

Unlike traditional market sales facilitated by real estate agents, selling your house as-is to a cash buyer reduces the duration of expenses such as taxes, insurance, mortgage payments, utilities, and maintenance. Opting to sell a North Carolina house to an investor is a favored choice among divorcing couples due to its convenience.

Tips for selling your house during divorce North Carolina

Sell during peak season

In North Carolina, the peak season to sell a house is during the spring and summer. So if possible, try to align the marketing of your house sometime between April-June in order to close between May-August. This is the most beneficial time for prospective buyers to move according to North Carolina real estate trends.

Choose a real estate agent with divorce expertise

When navigating the sale of property during divorce proceedings, it is imperative to use a realtor with experience selling houses due to divorce. They should possess a deep understanding of the intricacies involved in divorce related property sales and be well-versed in the legal implications inherent in these transactions. An experienced divorce specialist agent can serve as a valuable mediator, facilitating communication between divorcing spouses and providing impartial guidance that prioritizes the best interests of both parties.

Additionally, they should be attuned to the emotional challenges of divorce, offering empathetic support and guidance throughout the selling process. By selecting the right agent, individuals can ensure a smoother and more efficient selling experience, ultimately leading to favorable outcomes for all parties involved in a court ordered sale of house in divorce.

Agree on home sale terms

Prior to listing the property, couples embarking on the sale journey must reach a consensus on several critical aspects. These include determining the listing price, devising an effective marketing strategy, and establishing a convenient showing schedule. Furthermore, if the home necessitates repairs or renovations, couples should engage in discussions regarding the allocation of expenses and the division of any resulting increase in value. Clear guidelines pertaining to communication and decision-making are paramount to forestall conflicts and guarantee a seamless selling process. By collectively addressing these specifics, couples can streamline the home sale process and navigate it with greater efficiency and harmony.

Know what to expect in order to close

Closing the sale of a house during divorce proceedings often entails negotiations and compromises, particularly when evaluating offers from prospective buyers. Couples embarking on this journey must carefully consider their priorities and objectives for the sale, whether it involves maximizing profits, expediting the process, or minimizing stress and conflict. Collaborating closely with both legal counsel and real estate professionals is indispensable in this endeavor. Together, they can meticulously review offers, negotiate terms, and adeptly navigate any legal complexities that may arise, ensuring a successful and harmonious conclusion to the sale.

Know what to expect after closing

Upon the completion of the sale, the proceeds garnered will necessitate division between the spouses in accordance with the stipulations outlined in the divorce settlement or as directed by court rulings. Couples embarking on this phase should anticipate potential tax ramifications and may find it prudent to seek guidance from financial advisors to facilitate a just and equitable distribution of assets. Prior to disbursing the proceeds, it is imperative to settle any outstanding debts or obligations linked to the property, such as mortgages or liens, in order to ensure a seamless and comprehensive resolution.

Final thoughts: Selling a house during divorce North Carolina

There’s no doubt that selling a house during divorce can be draining. It is crucial for couples going through divorce to prioritize their self-care and emotional well-being throughout the process of selling a house during a divorce. Divorce often presents significant challenges and emotional strain, and seeking support from friends, family, or mental health professionals can provide invaluable assistance during this difficult period.

Approaching the sale of a house during a divorce with patience, empathy, and careful planning can help minimize stress and conflict, leading to a fair and equitable resolution. With the guidance of legal and real estate professionals, couples can successfully navigate this challenging process and move forward with their lives.

Do not allow the complexities of selling a house during a divorce to overwhelm you. Our team of experts is here to offer the support and guidance necessary to navigate this challenging process with confidence.

Contact us today to discover more about how we can assist you in efficiently and effectively selling your house during a divorce. Your future awaits – allow us to help facilitate a smooth transition.

These findings apply to all cities and towns in North Carolina, including Raleigh, Durham, Fayetteville, Johnston County, Sanford, Burlington, and surrounding areas.

Author: Jason Hill

I am a seasoned real estate agent and investor with nearly a decade of experience helping families sell their marital house during divorce in North Carolina. As the founder of Freedom Choice Realty & Investments my mission is to deliver simple and hassle free selling solutions to North Carolina homeowners. With the ability to either list your house or buy it as-is we have a unique offering that caters to those looking for ways to sell a house during divorce in North Carolina.