{"id":10843,"date":"2023-10-26T03:39:48","date_gmt":"2023-10-26T10:39:48","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=10843"},"modified":"2023-10-26T07:04:52","modified_gmt":"2023-10-26T14:04:52","slug":"divorce-house-settlement-options","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/divorce-house-settlement-options\/","title":{"rendered":"How to Navigate Your Divorce Settlement Options Related to the House"},"content":{"rendered":"

On average, Americans have $274,000 of wealth tied up in their homes<\/a>. So you\u2019d think that couples who once bought a house together would preserve what\u2019s likely their biggest asset with care, no matter how heated things get. But divorced couples are often confused about how to handle the house they once bought together, which can result in serious financial consequences<\/a>.<\/p>\n

\u201cI sell a couple of hundred homes a year that are foreclosed properties for banks and government, and a huge chunk of those are as a result of a divorce,\u201d says Tim Ray<\/a>, a top agent in Kansas City, Missouri<\/a> who regularly helps divorcing couples sell their home. \u201cPeople just throw their hands up because they don\u2019t know how to deal with their situation.\u201d<\/p>\n

Rather than treat your largest financial asset with reckless abandon, review these top considerations for navigating your divorce settlement options related to the house that we\u2019ve compiled with the help of real estate attorneys and legal experts in family law.<\/p>\n\n\n\n\n\n

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Find an Agent Experienced in Divorce Sales<\/h3>\n

A great real estate agent can help you navigate the complexities of selling a home in a divorce and lighten your load. HomeLight\u00a0can connect you with a Certified Divorce Real Estate Expert in your area or a top agent with valuable experience helping couples successfully sell their homes due to divorce.<\/p>\n \n

\n Find Agent<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n
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What is a divorce settlement, and how does property factor in?<\/h2>\n

A divorce settlement<\/a> is a legal document between a divorcing couple that formally outlines the terms of the divorce regarding child custody, alimony, property division, and more. Even in the most civil of divorce proceedings, you\u2019ll need to have a formal divorce settlement prepared.<\/p>\n

While no two divorces are the same, creating a settlement typically follows a standard timeline<\/a>:<\/p>\n

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  1. File a complaint, kick off the divorce proceedings.<\/strong> Either you or your spouse writes up a petition, or complaint, with a lawyer. The petition explains why you want a divorce, as well as how you want to divide assets.<\/li>\n
  2. Complaint is served and answered.<\/strong> The petition is filed in court, as well as formally served to your spouse. Your spouse is required to answer the complaint with a response, which typically includes how your spouse would prefer to divide the assets.<\/li>\n
  3. Exchange of information.<\/strong> You and your spouse exchange information around finances, property, and income.<\/li>\n
  4. Mediation and settlement.<\/strong> Some states legally require divorcing couples to enter mediation discussion. In other states, mediation is voluntary. If you and your spouse can agree on all assets, you\u2019ll share a settlement agreement with the court.<\/li>\n
  5. Approval or trial.<\/strong> If the judge agrees with the settlement agreement, a formal divorce decree is drawn up. If you and your spouse can\u2019t come to an agreement, the divorce will go to trial.<\/li>\n<\/ol>\n

    If you and your spouse (soon to be ex-spouse) own property together, deciding what you do with it in your settlement is one of the bigger and more complex challenges you\u2019ll face. You\u2019ll want to make an informed choice based on your finances, your relationship with your ex, real estate market conditions, and the impact on your children. Most divorced couples will choose between these options:<\/p>\n