Divorce is not always easy. It’s an emotional and stressful roller coaster for everyone involved. Did you know that selling your home during a divorce can potentially save you money on capital gains tax as long as you sell while you’re still legally married?
Yes, that’s correct, you’re eligible for an exclusion up to $500,000 while legally married. Once you divorce that exclusion drops to $250,000.
Read on for more insightful information.
How to Sell Your Home In Los Feliz During a Divorce
One of the most difficult aspects of divorce is the sale of your home. A home holds sentimental value, whether you are going through a divorce or not. Sometimes it’s better to rip the band-aid off and move on right away, and sometimes it’s better to do your best to hold onto it.
Selling a home during a divorce holds one drastic difference than a typical sale… you have to determine who is going to get what before you put the home on the market. Whether it’s the furniture, the electronics, or the money from the sale, the hardest part is going to be figuring out who walks away with what.
Our Los Feliz Sellers Agents suggest that you consult with an attorney immediately. The attorney is the mediator who will assist you through dividing up possessions and equity so that it is fair. Before you contact a Los Feliz Realtor you will need a clear understanding of who is going to walk away with what after the sale.
A Los Feliz Realtor who is familiar with divorces can help you to determine how much your home is worth and assist you with positioning your spot in the market to attract the most buyers to get you top dollar.
Should I Sell My Home Before or After Divorce?
Before your divorce is likely the best scenario for selling your home during a divorce. Moreover, it’s important to meet with a local Los Feliz Realtor and an attorney, and let them know every detail of your situation so they can play out the results with you.
Additionally, you want to walk away from the sale of your home with as much money as possible without leaving anything on the table, and this means you will want to share everything with your team. We’re here to help you.
What Are The Taxes When Selling A House During A Divorce?
Our Los Feliz Listing Agents say that Capital Gains Taxes are worth paying attention to when selling your house in Los Feliz during a divorce – this shouldn’t be overlooked and consult your tax person or CPA if you’re confused.
The reason being that as a legally married couple you are eligible for a $500,000 tax exclusion, while individually you’re only eligible for a $250,000 tax exclusion.
Your tax strategy when selling your home can have drastic financial implications, upwards of tens of thousands of dollars or more in some cases, so it’s crucial you educate yourself with exceptional information on the topic.
Buying A House In Los Feliz During A Divorce
Our Los Feliz Buyers Agents know that purchasing a house is a lot of fun and can take your focus away from a divorce, but buying a house while going through a divorce can be tricky. If it’s an emotional choice you should think about renting for a year, that way you will know more about how your financial situation will play out after the divorce.
It could be that you want to buy a house simply to make yourself feel better, and in some cases to make a former spouse upset, and that is never a good thing.
If you’re certain a divorce is in the cards for you, first take a deep breath. Everything will work out the way it should if you don’t make decisions based on emotions, and the team doesn’t suck at their jobs who you surround yourself with.
Make sure to look up online reviews of real estate professionals and attorneys you interview regardless of the referrals you get from friends and family.