If you’re going through a divorce and own a home together, you may be wondering:

What happens to our house during a divorce, and what should we know before deciding whether to sell or keep it?

The home is often one of the largest financial assets in a divorce, but it can also be one of the most emotional. Before deciding whether to sell, keep the home, or divide the equity, it helps to understand the real estate questions involved.

Here are five important things to consider.

1. Should We Sell the House or Should One of Us Keep It?

This is often the first question homeowners ask during a divorce. There isn't a one-size-fits-all answer for every couple. Depending on your circumstances and any agreements or court orders, options may include selling the home, having one spouse keep it, or delaying the sale.

Before deciding, consider more than your emotional attachment to the property. Questions may include:

• What is the home worth?
• How much equity does it have?
• Can one person comfortably afford the home?
• Can the existing mortgage be refinanced or otherwise addressed?
• What would selling costs be?

Understanding the numbers can help you and your professional advisers evaluate the available options.

2. How Do We Find Out What Our Home Is Worth During a Divorce?

An online home estimate can be a starting point, but it may not provide enough information for important financial decisions. 

A real estate professional can prepare a comparative market analysis using recent comparable sales, current competition, the property's condition and location, any improvements, and current market conditions. It is also important to distinguish a Realtor's market analysis from a formal appraisal. 

Depending on the reason for the valuation, an attorney, lender, court, tax professional, or other adviser may recommend a qualified appraiser.

3. How Is Home Equity Determined in a Divorce?

A simple estimate of equity starts with the home's value minus the amounts owed on the property.

But estimated equity is not necessarily the same as the amount available to divide after a sale. Mortgage balances, liens, selling expenses, repairs or credits, and other transaction costs can affect the final proceeds.

How property and proceeds are legally characterized or divided in a California divorce is a legal matter. A family-law attorney can advise you on your particular situation.

From a real estate standpoint, having realistic information about the home's potential selling price and expected selling expenses can help everyone work with more accurate numbers.

4. Can One Spouse Keep the House After Divorce?

Possibly, but deciding that one spouse wants the house is only part of the equation. Important questions include whether that person can afford the mortgage, property taxes, insurance, HOA fees, maintenance, and other ongoing costs.

You may also need to address financing and title issues.

A lender can explain mortgage and qualification options, while your attorney can advise you on ownership, agreements, and legal obligations.

A decision that feels right emotionally should also make financial sense for the future.

5. What Should We Do Before Listing the House for Sale During a Divorce?

Before putting the home on the market, it helps to communicate clearly and have a plan for handling real estate decisions.

Questions to address may include:

• Who will communicate with the Realtor?
• How will decisions on pricing and offers be made?
• Who will prepare the home for sale?
• How will repairs or improvements be approved?
• How will showings work if someone is still living in the home?
• What happens when you receive an offer?

When both parties receive the same real estate information and understand the process, it can help keep the transaction focused on the property and the decisions that must be made.

What Kind of Realtor Should I Use When Selling a Home During Divorce?

A divorce-related home sale can involve additional communication, documentation, timing, and financial considerations.

A Certified Divorce Real Estate Specialist has specialized training in divorce-related real estate transactions. The Realtor's role is not to provide legal advice or decide what either spouse should do. Instead, the role is to provide neutral real estate information and help manage the sale professionally when selling the property is the agreed-upon or legally directed course of action.

Going Through Divorce and Have Questions About Your Home?

You don't need to know today whether selling is the right option.

If you need to understand what your home may be worth, what selling could involve, or what questions to consider before making a real estate decision, I can help you understand the real estate side of your options.

> ASK ELLEN A CONFIDENTIAL REAL ESTATE QUESTION

Ellen Baker

Realtor® I DRE 01774135 I Seniors Real Estate Specialist, SRES® I Certified Real Estate Divorce Specialist

Realty ONE Group Pacific

Call/Text: 858-444-6444 

Serving buyers and sellers since 2006

This article provides general real estate information and is not legal, tax, financial, or lending advice. Divorce and property rights can involve complex legal and financial issues. Consult your attorney, tax professional, lender, and other appropriate professionals regarding your individual circumstances.