Divorce sale

Selling Assets Before Divorce in Nebraska

August 24, 2017 • Owen

Selling assets before divorce is something that many who find themselves in this type of stressful situation may attempt to do. It is a rough time that the couple is going through and there are a lot of mixed emotions.

Selling assets before divorce in Nebraska can just make a bad situation worse.

You are most likely concerned about how the money that you have, your house, and other assets will be divided.

Concerns about how fair the split will be may be tempting you to start selling assets prior to divorce so you can be sure that you are going to get what you feel you are entitled to. Often these types of actions are spurred on by anger and frustration. You may believe that you are entitled to more than your spouse. Based on this you feel you should be selling assets before divorce.

What you may not realize is that this can get you into some serious legal trouble.

Every state has its own specific laws as to how assets are to be distributed in a divorce. If you are determining selling assets before divorce in Nebraska you need to look closely at what the rules are concerning selling assets before divorce. In general, the rules for dividing assets in a divorce will fall into one of two categories.

selling assets before divorce like your house

Selling Assets Before Divorce Is Filed in Community Property States

Those states that are classed as community property states have laws in place that create a 50-50 split of the assets that were accumulated during the marriage. It doesn’t matter which of the parties may have actually purchased them, they are considered to be part of the marital assets.

There are situations where individuals enter into a marriage and bring some assets into the marriage with them.

This could be a specific amount of money such as savings, or perhaps a home or other type of asset.

In this case, these types of assets will not be considered as part of the community property of the marriage. The exception to this is if you decided to co-mingle these assets in your relationship. Then selling assets before divorce is filed that pertain to these ones would have different rules applied to them. In this situation you would need to look at how to sell assets before divorce in Nebraska rules prior to taking any action with them.

It can get a little confusing when it comes to assets owned prior to the marriage and what happens to them during a divorce.

For example, if you have $25,000 in a bank account in your name, when you entered into the marriage and you kept it in your name, then that is your asset.

However, if you took that money and put it into a joint account with your spouse then you have co-mingled that asset and it is part of the marital assets.

Or you may have entered into the marriage with a new vehicle that was in your name, and you kept it that way. This too may not be considered as part of the marital estate.

Each state may look at prior to the marriage assets differently, so if you want to sell assets before divorce, it is important that you know the laws pertaining to this.

Inherited Property

selling assets before divorce house choices

When selling assets before divorce in Nebraska you also may have to think about assets that you inherited.

This could be property that you brought into the marriage from an inheritance. Or, it could be that you inherited the property during your marriage. Assets received from inheritances, or money judgements, or from claims resulting from a personal injury, may not be subject to the 50-50 rule. Again, this will depend on whether these assets were co-mingled.

Equitable Distribution States and Selling Assets Before Divorce

When selling your assets before divorce in Nebraska you need to determine if the laws are based on equitable distribution.

In this case, the splitting of the assets is based on fairness according to the specific circumstances of the marriage.

While the law states each of the parties are entitled to a share it doesn’t mean that each will get half.

Many contributing factors are taken into account when the equitable distribution is being determined. It will take into account what each of the parties has contributed during the course of the marriage as well as how long the marriage was in place.

Usually selling assets before a divorce and dividing assets means the laws of the state are not being adhered to. This can create legal consequences for the party attempting to sell assets before divorce.

Selling assets before the divorce is finalized can be viewed as committing a crime and you can very easily get caught.

cold without your house after selling assets before divorce

What some will attempt to do is hide their assets before actually selling them. This is so they will not be included in the marriage estate.

During the divorce proceeding, there is what is called a ‘Discovery’. This is where both spouses must provide all their information about their assets and financial information to each other. If you are hiding assets or have been active in selling assets before their divorce and you do not disclose this you could be charged with perjury.

While the sale of assets before the divorce may be tempting for many different reasons, it really is not something that you want to participate in because no matter whether you are just contemplating doing so, it will probably get you into some serious legal trouble.

You need to take the time to research the divorce laws of the state and make sure that you rely on the proper resources to assist you with making the right decisions. There is a lot that has to be considered regarding the sale of the home, and no doubt you and your spouse want to get the most for it if you decide to sell. If the value of the home is not going to cover the mortgage outstanding then you may want to find alternatives to selling assets before divorce.

Sell Your House After a Divorce

Selling a house quickly after a divorce can be a stressful situation. If you need to sell your house fast, Red Ladder Property Solutions will give you a cash offer in 24 hours. Just give us a call at 402-578-4003! There are no obligations. We are also available to answer any questions you may have and look forward to talking to you about your options.

What Happens to a Mortgage After Divorce?

August 10, 2017 • Owen

Figuring out what to do with a house that has a mortgage after divorce can be daunting.

This type of question comes at a time when your life is probably in turmoil. This is just one of many questions that you have to find answers for and decisions that you will have to make, among who gets the house after a divorce, and what a divorce buyout is. Chances are you have a lot of questions, and a lot of assets to deal with in your divorce settlement and the matrimonial home is the most significant one.

When it comes to the mortgage it can mean that the division of the equity in it has to be determined.

Then it may mean trying to decide whether the home is to be sold. There may be liabilities regarding the home that have to be dealt with.outside house. what happens to mortgage after divorce?

Responsibilities for the Mortgage

Responsibilities for the mortgage after divorce are not something that most deal with on a regular basis so it is understandable why there would be so many questions that arise pertaining to it.

One of the common questions is whether the house does have to go through a sale so the equity can be divided. There is an alternative to this where one party can buy out the other. If this is the route that is taken, usually the spouse that is going to buy the home will have to go through a mortgage assumption it so they can pay the other spouse their share of the equity.

To find out how to remove a spouse’s name from the divorce, please visit this article.

What has to be decided quickly when it comes to dealing with the mortgage after divorce is who is going to be responsible for paying it.

Who Pays the Mortgage After Divorce?

divorce splitting assets

If the mortgage has been held jointly then legally both spouses are equally responsible for making payments.

If the mortgage is not paid the lender can come after both parties. During the divorce agreement, it should be legally determined who is going to assume the mortgage payment responsibility.

There are times where agreements are made between a couple to just transfer the title to the other partner. This can be done with a quit claim deed.

This means the party signing over their ownership will no longer have any claims to the property.

That does not mean that the spouse giving up their rights to the property is no longer responsible for the mortgage after divorce. To prevent this there has to be a transfer of liability. This can be done by the spouse who is taking ownership by taking on a mortgage assumption or arranging for a loan modification after divorce.

In most cases, the better route to take is to assume the mortgage which will then have the responsibility for paying it moved over to the spouse who is going to keep the house.

This will only work if the spouse applying for the mortgage assumption meets the criteria put in place by the mortgage lender. If this is the case then it may be possible to obtain a home equity loan for refinancing.

What if There is Not Enough Equity in the Home?

divorce house

Not every couple going through a divorce is going to realize a profit from the sale of the home, and that selling it will clear off the mortgage.

There are times where the value of the home is lower than the mortgage. If the buyout partner cannot qualify for a loan modification after divorce or come up with other ways to buy the house it creates a difficult situation.

What could possibly be arranged is putting off the buyout or selling the house. It means an agreement would have to be reached to this effect by the two spouses. If this cannot be done then the next alternative may be a short sale.

A Short Sale To Deal With The Mortgage After Divorce

If a short sale is being contemplated to deal with the mortgage after divorce, there have to be some negotiations made with the mortgage lender.

This means that the house would have to be sold for less than the amount of the mortgage. While the mortgage lender is losing money with a short sale this option helps to relieve a lot of the hassles that the lender would likely have if they were to foreclose and sell the house themselves.

It can also mean that the mortgage after divorce that is subjected to a short sale will still leave both spouses with a liability. The lender may hold them responsible to pay the difference owing on the mortgage after divorce sale.

Overall most feel that this is still a better option than dealing with a foreclosure.

Dealing with the mortgage after divorce issues can be really stressful. It may be that the housing market is just not right to consider a sale of the property.

windows on a house

Although both parties want to bring some closure to the situation it may be far better financially for both to hold onto the house and sell it when the market is right. Making this type of decision is all going to depend on the current financial positions that both spouses will find themselves in after the divorce.

Another reason that many would rather deal with a mortgage after divorce is if there are children involved. There has probably been enough turmoil in the family and it’s a better option not to have to uproot the children from the home they are used to.

There are a lot of decisions to be made and some substantial work ahead of the spouse who is trying to buy out the house.

However, it may be worth it when everything is properly considered. It is also important to rely on the right resources.

Both parties should have their own divorce lawyers to assist them with writing up the agreements, and to ensure both parties are protected when it comes to the mortgage for the family home.

If the house is going to be sole then relying on a reliable and trustworthy realtor is important. If re-financing the mortgage after divorce is viable then finding the proper lenders is going to be a priority. It may be based on the financial situation that holding onto the house in both names for a period of time may be the better solution. It is important that all options be carefully considered.

Sell Your House After a Divorce

If you are trying to sell your Omaha house after a divorce, Red Ladder Property Solutions will give you a cash offer as soon as 24 hours!

To get your cash offer, or to get answers to any questions you have, call us at 402-578-4003. There are no obligations in contacting us!

How to do a Divorce Sale in Nebraska

July 20, 2017 • Owen

Once the decision has been reached that a divorce is eminent, a lot of questions are raised. One of these is, “What happens to the house in a divorce?”

Most often it means that a divorce sale must be carried out.

All of the assets accumulated during the marriage have to be divided.

There will be specific laws as to how this is legally done according to the state you are in. How complicated it will depend on the number of assets and the governing rules. The sale of a home during divorce requires some careful planning and using the right resources.

If you are your spouse are able to come to some amicable arrangements regarding your marital property then the divorce sale should be much easier and quicker.

What happens to the house?divorce sale house

What happens to the house in a divorce is probably the biggest concern as this is usually the biggest asset in a marriage.

First, understanding what the rules of the state that the divorce and divorce sale of the house is taking place in are most important. Some states go by the community property rules. This means, as a rule, all of the assets owned by the couple will be split 50/50.

If the house was purchased together as a couple then the split should be fairly simple. Where it gets complicated is if the house belonged to one of the spouses prior to the marriage.

Depending on the circumstances and the State it may not be considered as part of the community property or the divorce estate.

This is when the divorce sale can become more confusing. It can also get complicated if the house was left as a gift or inheritance to one of the spouses. For these reasons, it is highly important to have proper legal counsel to assist with the division of the assets and to protect the rights of each of the spouses.

Proceeding with the divorce sale

divorce sale refinancing

You will find that you have several options for proceeding with the divorce sale of a home. You have the option of attempting to sell the house yourself. If you decide to do this it means that you are going to have to advertise it and market it as heavily as possible. Some individuals who are going this route will commence with a divorce sale using Craigslist.

There are pros and cons to attempting a divorce sale on your own. There are a lot of legalities when it comes to selling a house. Then on top of this, you will also have to deal with the legalities that come with a divorce sale.

The second option is using a Realtor that is experienced and has the expertise and resources to conduct a divorce sale of a house in a quick manner. You also have the advantage of learning what the housing market for your area is like during this time, which is going to be important.

You will also get a good idea as to what your house is most likely going to sell for. You likely have personal ties to the house and with the personal circumstances you are in at the moment you may tend to over evaluate the house. This could mean that the house will not sell or it would take a very long time to do so.

If possible both spouses should come to an agreement as to what the house should be put on the market for, and this should be compatible as to what the housing market is dictating at the time. If you decide to go through a divorce sale using Craigslist or any other form of advertising you will need this plus a lot of other information to entice potential buyers.

Options on Selling

signing divorce sale paperwork

You may find that once you  get your divorce sale listed that you are approached by investors who are willing to buy your house for cash. If you are wanting to sell quickly this may be an inviting offer. It may be that it is lower than what you wanted but you may need to consider how it works in with the current situation that you are now in. Chances are you and your spouse want to get the assets settled so your divorce can become final.

The divorce sale process is not much different than a regular sale of a house except the timing may be important. Often one party moves out of the home and it can be financially difficult to keep up with the expenses of the house.  There may also be some discussions as to whether one party wants to buy the other out. If this is the case then re-financing of the mortgage would have to take place. In any event, until this asset is sold both are responsible for the mortgage and you don’t want to let this go into arrears.

The party that remains in the home during the divorce sale is going to have the responsibility of making sure the home is show ready for viewings. This may also mean some minor repairs are needed which should be done quickly to encourage a quick sale.

During a divorce sale, the best option is to retain an experienced realtor and perhaps sharing with this expert that this is a divorce sale so they understand the urgency of getting the home sold quickly. It is also important that both parties rely on independent legal counsel for the division of the assets. Neither party wants to take it upon themselves to sell the house or any other asset prior to the divorce without mutual consent as there could be legal repercussions to this. Each spouse needs to know what their rights and obligations are and what the law states about the division of assets.

It is imperative that both spouses come to an agreement that the house is to be sold and at what price. If these factors are not agreed upon it can make it extremely difficult through the sale process when offers come in.

Sell Your House After a Divorce

Red Ladder Property Solutions can make you a cash offer to buy the house as-is. You can get an offer on your house within 24 hours just by contacting us.

Click here to get a cash offer for your Omaha house or give us a call at 402-578-4003. We look forward to talking with you about what options you have.

Sell My House Before or After Divorce in Nebraska?

June 8, 2017 • Owen

The question that gets asked often when people are considering divorce is, “Should I sell my house before or after divorce?”

Whether you should sell a house before or after divorce in Nebraska is going to depend on a lot of variables.

Most often there are so many things to deal with during a divorce that it becomes overwhelming and frustrating. Situations like who gets the house after a divorce, divorce buyouts, and refinancing. One may not think clearly and make decisions based on their emotions which may not be the best decision at the time. There is no doubt that for homeowners that are going through a divorce that the question, “Is it better to sell a house before or after a divorce becomes a reality?”

sell my house after divorce

Is it Better to Sell a House Before or After Divorce?

Regardless of whether you sell a house before or after divorce in Nebraska, you will still want to sell a house at a profit.

Even though you may be in a hurry to get your finances in order as they pertain to the divorce, the timing of the sale is going to be important.

How profitable this will be will depend partially on the housing market at the time, the economy in general, and how long you can wait for the right buyer.

Then there are the other costs that come with selling a house that has to be taken into account. You also have to look at the rules and regulations as they pertain to the state as to how assets are handled in a divorce.

This will play a big factor in helping you to make the decision as to when is the best time to sell.

 Selling My House Before Divorce

should I sell my house before or after divorce?

Making a Profit on the Sale

There can be tax implications that come with the home sale that will have to be decided upon and may also be part of the divorce proceedings.

If you sell at a profit then there may be taxes that have to be paid. Then you may be eligible for a capital gain deduction.

How this is going to affect you will all depend on the decision that is made between you and your spouse for filing your taxes.

If you are selling before your divorce then you both may decide to file the last taxes jointly. If you sell the house after your divorce then you are probably filing separately.

If you need to consider breaking your mortgage read more about the ramifications here.

There can be some tax advantages to filing separately. For example, if you are co-owners of the house you may be eligible for up to $250,000. of capital gains exclusion. This is dependent on your being able to prove the use and ownership tests for the property.

The same advantage may also apply to your spouse who is filing separately. If you decide to file jointly then you both may be able to take advantage of a $500,000 exclusion based on meeting the criteria for this.

Your tax obligations are one of the most important considerations to be made when you are trying to decide whether to sell a house before or after your divorce.

Realizing a Loss On The Sale

alone with the thought to sell my house before or after divorce

It may be that you are not in a good financial position with the ownership of your home. You may be dealing with an underwater mortgage or negative equity.

This is the case when you owe more on your house than what it is currently valued at. If you are going to sell the house at this time you will end up with a loss.

This will be taken into account during the financial division of assets in the divorce and will be a debt that you will both owe to the mortgage lender. The lender has the rights to come after you both to satisfy the debt owed to him

Considering A Short Sale

When deciding to sell a house that has too much owed during a divorce, you may find that you are able to sell the property through a short sale. Negotiations may be made with the mortgage lender to give up his rights to hold you and your spouse responsible for any balance that is left owing after the sale.

Sell My House After Divorce

splitting assets so I can sell my house before or after divorce

If you are able to communicate with your spouse on a reasonable level you both may be able to come to an agreement not to sell the house until the circumstances are more favorable. You may both decide that it would be more beneficial to you financially to sell the house when the housing market is in your favor. Or, until you are able to pay down the mortgage so you don’t have to deal with negative equity.

Some couples who realize that they are both going to be in a tough financial situation because of the divorce are willing to make some concessions. They will both hold onto the title of the home and both remain living in it. One may occupy the basement while the other takes the upper level. While this is a good attempt at trying to find a plausible solution to the financial dilemma it doesn’t usually work out well.

Another option when considering selling a house before or after divorce, when it’s not the right time, is to still keep the title in both names.

However, one will move out of the home while the other remains in it. This still incurs some additional expenses and potential financial hardships for both parties.

While there are several options that relate to not selling the house at the moment it is important that whatever agreement is made is put in writing. Things change after the divorce and decisions that are made prior to or during the divorce proceeding may be ones that don’t seem feasible after the divorce is final.

If the decision to sell has been reached where the house will not be sold until after the divorce, then other factors need to be considered.

It will have to be determined who is going to continue to pay the mortgage. Agreements will have to be made as to who is responsible for the upkeep and maintenance and paying the utilities and expenses.

Ideally, these types of agreements and arrangements should be made under the advice and direction of the respective lawyers for both parties.

So Should I sell My House Before or After Divorce?

paperwork on whether to sell my house before or after divorce

There are pros and cons to both selling a house before a divorce or after a divorce and it takes careful thinking and planning and being logical when making decisions. Relying on the right advice and resources can help you make that decision.

Find out more about whether a house will need to be sold during divorce by reading this article.

Sell Your House After a Divorce

If you need to sell your Omaha house fast, we’ll give you a cash offer as soon as 24 hours! To get your cash offer, or to get answers to any questions you have, call us at 402-578-4003. There are no obligations in contacting us!