Going through a divorce is one of the most difficult times in life. Despite this, knowing ahead of time that the marriage is over can be an advantage. When it comes to the marital home, you have a couple of options. One spouse can keep it and live in it with the children. Both spouses could choose to remain in the home. Or, you could sell the home and split the proceeds. Here’s why you need to sell it before you get divorced.
Capital gains are the biggest reason you should sell the marital home before you are officially divorced. Why? The capital gains for a married couple are worth $500,000. This is an exception that you take on your annual tax return. You can both take advantage of this while still legally married. If you sell the home after getting divorced, the capital gains exception drops to $250,000.
Do you want the sale of your home to be private? If so, do it before you get divorced. Divorce is a public affair. You won’t be able to keep the information from the sale of your home from getting out to the public if you sell it during the divorce.
Is the market hot right now? If it is, and you know you will be filing for divorce in the near future, take advantage of the market. Don’t wait to sell the home until you file for divorce as the market could turn on a dime.
When you know that the marriage is no longer viable, it’s important to start planning your future as a divorcee. This includes exploring the possibility of selling the marital home before the divorce is finalized.