So, should you then sell your house in Scottsdale before or after divorce? Which option is better?
To make the right choice, you need to evaluate the pros and cons of each option. Below are some of the advantages of selling your home in Scottsdale before the divorce;
You can use the home equity to plan for your future
When you sell your house in Scottsdale before divorce, you can maximize the home equity and you can use the proceeds of the sale to plan your next move. Although you are entitled to half of the home’s value (although it can differ depending on the property type), you will get some money that can help you plan for your future.
You can use the proceeds to make a down payment for your new home, relocate to a new city or rent another house even before the divorce is finalized.
It will help you clear the past and memories faster
If you are both planning to move out and start a new life, selling your home before the divorce is the best option. When you continue getting tied to common property, you will continue getting tied to your ex. When you hold your home until the divorce is concluded, you will continue retaining memories of your ex and you will have a very hard time getting rid of the past and memories which can take a toll on your psychological status.
You can avoid paying capital gains tax
When you sell your house in Scottsdale before divorce, the IRS provides capital gains tax exemptions to married couples. Therefore, you can exclude up to $500,000 of your home equity from capital gain taxes when you both agree to sell the home before the divorce. The proceeds from capital gains tax exemptions can help ease your financial burden once everyone goes their way.
What are the drawbacks of selling your house in Scottsdale after divorce?
Delayed selling ties you to your ex
If you decide to sell your house in Scottsdale after divorce, you will still be tied to the mortgage together with your ex even if you are no longer a couple. When you are co-owners of a house in Scottsdale but separated, you will have to coordinate on mortgage payments, settling utility bills, and regular maintenance. Such arrangements can impact your savings, taxes, and debt to income ratio which can have a significant impact on you if you decide to buy another property.
If you finally agree with your ex to sell your house in Scottsdale, I would highly advise you to sell your house directly to Liz & Marie. You are guaranteed a fast home closing, fair offer, and utmost confidentiality.