Real Estate Mistakes You Should Not Make in a Divorce

By
Education & Training with Rel Real Estate

When going through a divorce, in most cases, couples go through painful and stressful situations. They are forced to make decisions that affect them later in life. Since this is a lifetime event, no matter how painful it would be, there is a need to maintain sanity and ensure that all is well before signing off the decree.

This is because, upon any sign-off, there is no turning back. As such, when processing divorce papers, it is vital to have a sitting and deliberate on the way forward before the divorce papers are submitted to the court for filing.

When it comes to dividing the assets during the divorce settlement, it becomes a hard decision to make, and especially when it comes to deciding on the way forward regarding a co-owned house. Selling the home and dividing the income may be an answer to your real estate problems, but then, one thing that the couples should take into account is the attachment that the kids had in the home. Think of the effects that this would have regarding the children and look for other alternatives.

However, out of the painful emotions, there are several mistakes that one should not make in a Divorce;

1. Making verbal agreements with the spouse

In many cases, people forget that they are dealing with a lifetime changer event that if a mistake is made, it’s hard to rectify it. In the marriage separation process, never make any verbal deal with the spouse. Ensure that everything has been documented and signed by both parties. This will act as a point of reference when the Attorney is doing the paperwork. Otherwise, if one is dealing with a corrupt spouse, you may find that the information you agreed by word of mouth has been changed to his or her advantage.

2. Failure to know what counts as the marital property

During the divorce process, one spouse may decide to walk out of their house pending the decree from the courts. According to Investopedia, if you buy a house before the divorce decree has been made, the new house can be considered as marital property, and the case can be won to the advantage of the other spouse.

With this in mind, it’s important to avoid entering into substantial investments to prevent further loss. In any case, the process does not take a long time, and one should be patient a little bit and proceed to buy after the decree is made.

3. Affordability.

At one time, when there were love and agreements in the family status, the house was a treasure to both couples; they enjoyed having it together with the kids. All this was because they could afford to pay for the mortgage with both their incomes, but as soon as they opt to separate, the costs involved in managing the house will be pegged on the person who wins the case, who will pay for the mortgage after divorce.

At times, it is not easy to manage the house in your own, and it would be advisable for the couples to sell it off and share the proceeds. This will ease the Attorney's work to fight in the courts for the partner wishing to retain the house, and the costs for court attendance will be reduced.

4. Failure to change the Title deed’s name

This is another mistake that couples make. One thing one should know is that even after separating and the name of the house does not change, all the responsibilities are pegged on you as the owner of the house also thought you left. It’s essential, therefore to change all the documents name if you are not the person who was not given the authority to retain the house.

Imagine being demanded to pay a mortgage for a house that you no longer consider yours; it will only remind the person of the painful experiences during the divorce, which was not necessary.

5. Planning to sell the house in the future

When the divorce plans are still on course, it’s critical that the couple decides to sell off the house and avoid other long term obligations that would also be accompanied by additional costs.

Couples may think that selling the house at a later date would give an allowance for the children to grow and leave the house at their pleasure.

However, even if the house is sold sometime in the future date, the status quo remains by dividing the proceeds remains. One should think about the future value investment factor and weigh out the amount of money to lose in the event the house is sold now and the cost implications in the future.

6. Selling the real estate immediately

When it comes to selling the house immediately because of pain and anger, you may not have sufficient time to advertise because of the rush involved, and as such, you may not understand the market, and it may be underpriced by the realtors who are out to make a profit on you. It’s critical, therefore to have some patience and work towards getting a fair share after the sale has been made. In any case, you need some finances to support you in starting a new life once again.

7. Try Nesting

According to CompleteCase, this is an option where the couples that are processing their divorce are allowed to co-share the house mainly to try and manage the sanity of their children. The house remains in full possession of the ex-couples, and the children will be staying in there. Their parents will divide amongst themselves on the person who will be staying for some time with the kids, say for a week, then steps out and gives the other spouse a chance to come and stay with the children for another one week.

This method will end up consuming so much time and costs. At times the ex-couples may meet in the houses and exchange bitter words in the presence of their children, which do not end up well.

This arrangement may not be long lasting despite the significant attempts that people would think of. The baby sitters would also remain confused, and the couple would end up to employing one every other week. This does not move on well when it comes to the raising of the child, having strangers every other day with new rules and regulations would drastically affect the kid’s development.

8. Buying out the other person

In some cases, people agree to buy out the other person. An agreement over this issue is not enough, which is the biggest mistake that couples make. Before proceeding to buy out, ensure that a proper appraisal regarding the value of the property is done in the right manner to ensure that the other partner is fully satisfied on the process of buying it off.

Another issue is that as you plan to buy out, do not assume that you will be paid later which is another outfall that is experienced by the divorcing buyer, and finds that you will never get paid for it. Ensure that the spouse who is buying the house has enough money to buy it off. This will eliminate future battles which may again end up in courts and add more costs to what has already been incurred.

9. Signing over half of the house

There is a great effect of a person releasing a house he used to call home, and as such, many find it hard to accept that the house has finally been handed over to the other couple if the decree dictates that it be handed over.

The spouse who wins the house should ensure that as soon as the decree is made; the ownership documents are changed and signed with immediate effect. This is to avoid court battles which may come in later in the possession of the house is still under the spouse who lost in during the divorce proceedings. This is one mistake that divorcing couples make, and they end up giving leeway to return to the courts for appeals.

Conclusion

All these mistakes revolve around financial information, which if not taken care of, will lead to stress and anger during the divorce. To open ways for healing after the separation, ensure that all the security information is fully secured and all the procedures are followed.

Never trust a spouse who is angered and has filed for divorce. He/ She would want to waste your life and leave you at zero. It’s imperative then to take care of every step before making the decision.

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