Selling your house during divorce in Lubbock can be emotionally draining. During this challenging time, emotions often run high. Sometimes, the frustration might lead to thoughts of property damage. However, with time, emotions settle, and we return to making rational decisions that benefit everyone involved.
Divorce proceedings typically push us toward practical solutions faster than our emotions might be ready for. It’s crucial to maintain your property’s condition to maximize its value. Damaging the home might provide momentary satisfaction but could result in financial consequences if your ex-spouse claims property damage, potentially reducing your settlement portion.
Agreeing to Sell and Split
A common approach to dividing property in divorce, especially homes, is selling the house and splitting the equity equally. This solution works particularly well when children aren’t involved, as it eliminates ongoing mortgage obligations and can expedite the divorce process. At Electrum Properties, we understand that a quick cash sale can provide the freedom both parties need to move forward. However, in slow housing markets, traditional sales might prolong an already difficult process.
Consider consulting with a realtor for an honest assessment of your Lubbock home. Determine which improvements might yield the best return on investment. Negotiate realtor commissions to maximize your net profits, and request a thorough market analysis to establish realistic expectations for the sale.
Preparing the House for Sale in Lubbock
Both parties should collaborate to prepare the house for viewings. Remember, you both benefit from maximizing the sale price. Declutter the space, maintain the lawn, and create an inviting atmosphere that potential buyers can envision themselves in. Completing those long-delayed home maintenance tasks can significantly impact your property’s value.
Your spouse might wonder why these improvements weren’t made sooner, but ultimately, you’ll both benefit from the increased sale value. Sometimes, these situations create unexpected win-win scenarios.
The Next House
If you’re selling your marital home and planning to purchase another property, coordinate carefully with your realtor to ensure proper timing. Divorces and home sales can both face unexpected delays. Avoid committing to a new mortgage before your divorce and current home sale are finalized to prevent financial complications.
Be transparent with lenders and begin the financing process early. While preparation is important, avoid locking in rates until you’re truly ready to proceed. Multiple credit inquiries for loan approvals can negatively impact your credit score.
One Spouse Keeps The Pad
While buyouts are more common when children are involved (to maintain stability), this approach works in any divorce when both parties agree. In this scenario, one spouse purchases the other’s interest in the property. The departing spouse relinquishes their property rights through a quit claim deed, while the remaining spouse assumes the mortgage and compensates them for their equity share.
To buy out your spouse’s portion of the mortgage, contact your lender to explain the divorce situation and request a loan assumption. Lenders will typically evaluate your individual financial standing to ensure you can afford the payments independently. Be prepared to document all income sources, including any spousal support you’ll receive.
If the lender doesn’t approve the loan assumption, you’ll need to apply for refinancing. If current interest rates are lower than your existing rate, refinancing might actually be financially advantageous. Remember that this requires a new loan application, so you’ll need to meet all income requirements and debt obligations to qualify.