The process of selling a house during divorce can be daunting because of property sharing. When you’re going through a divorce, what happens to the house that both parties live in? What about furniture and other possessions? These are important considerations when deciding what to do with your home during a divorce. In this blog post, we’ll walk you through what does happen to your property during a family law case study and what you should be doing before selling your home during a divorce.
Freezing of Assets Before the Divorce is Issued
When you file for divorce, the first thing that will happen is what’s called a Temporary Restraining Order (TRO). This order will freeze all assets and property until the final divorce decree is handed down by the court. This means that neither party can sell, transfer, or hide any assets during the divorce case. In addition, this TRO will freeze any pending or future litigation actions that could affect the property.
In addition, a TRO does not preclude either party from trying to sell the property. This is part of the settlement negotiations between each spouse’s divorce attorney in many cases. The TRO simply freezes all assets until both parties reach a final agreement.
Division and Sell Of Property
Once a final agreement has been reached, or if no settlement can be reached, the parties will begin the process of transferring property. Typically this means putting any jointly owned assets in both parties’ names alone and then trading half of everything that is individually owned. This might include bank accounts or real estate. Once this is completed, the court will issue the divorce decree.
When couples decide to sell their property, what happens to a house during a divorce is that the sale will be completed through a court-supervised process. This ensures that both parties receive their fair share of the proceeds from the sale. Typically, the divorcing couple will list the house with a real estate agent, and the agent will market the home to potential buyers.
Once an offer is accepted, the sale will go through steps to make sure that both parties receive their fair share. The agent will prepare a sales contract and submit it to the court for review. If the court approves the sale, the agent will open an escrow account and deposit the money from the sale into that account. Once the escrow account is funded, the agent will distribute the money to both parties. This means that both parties can finance their new homes or pay off debts without fear of affecting the other party’s share of the proceeds.
Typically, the party whose name is not on the title to the property will receive more money from the sale than what they would have received if they had released their interest in the house during a divorce. This is because the party who retains their interest in the property typically has to pay capital gains taxes on any appreciation in the home’s value since they are not selling it outright.
Conclusion
If you are selling your house during a divorce, make sure to get all of the steps in writing according to some family law case studies. It’s also crucial that the proceeds from the sale are evenly distributed between both parties’ names until an agreement can be reached or a court order is handed down. Always start selling the properties after a divorce has been issued by the court.