My Blog

We all know someone who has been through it. It affects every aspect of our lives, our family, our children, our friends, and our jobs. It can be emotionally and financially devastating.

People that are divorcing must work out the intricate details of their divorce such as alimony or palimony, child support, and visitation rights. The divorce attorneys are there to focus on these details of the divorce but not necessarily on the largest community asset that the couple owns: THE HOUSE.

If you are getting a divorce, chances are you are speaking to an attorney. If you own a house, you should also consult with a Realtor and a mortgage professional.

As a Real Estate professional, when consulting with couples that are divorcing and thinking about selling their home, I will bring up details must be handled in a professional and caring manner. I have helped many couples get through it.

So many details need to be worked out with both divorcing parties before the home is put on the market. Will they both agree to the list price? Who will pay for the preparation of the property like clean-up and staging? Who will be living in the house? What are the showing arrangements? Will it be marketed vacant? Who will be responsible for the up-keep during the marketing period for water, PG&E and the gardener?

Sometimes I am called out to give an evaluation of the home to determine if there is any equity in the property for a spousal ‘buyout’. Firstly, I mention that if one them wants to be bought out by re-financing, they need to consult with a mortgage professional. I do point out that the remaining spouse must be able to shoulder the new increased mortgage payment. Both parties need to be aware that in today’s lending environment, bank appraisers closely scrutinize many aspects when evaluating a home for re-finance. How the home looks is important. If the home looks tired , in disrepair, or abandoned, the value may not come in high enough for a re-finance/spousal buy-out.

Some clients just ‘quitclaim’ their ownership to the home as part of the divorce settlement. Think carefully before you agree to do this. Talk to your attorney about the possible side effects of agreeing to a quitclaim . Can you image the ramifications to the credit score of the spouse, if the spouse that got the house pays the mortgage late a few times or not at all?

I hope in your divorce, civility and common sense prevails. I am available for a free consultation.