You’ve decided to sell your home, now what? There are many reasons individuals look to sell their homes. But one of the biggest reasons is divorce. With a divorce, comes the separation of goods, custody battles, and other factors. Whether it’s a clean break or not, there are many factors that can go wrong when selling your home.
As if separation and divorce weren’t stressful enough, couples can really mess things up when selling their matrimonial home during a separation. Chances are the matrimonial home is one of the largest assets the couple has and if not done correctly, one or both parties to the separation can incur serious adverse tax consequences when selling their matrimonial home.
According to the Centers for Disease Control and Prevention, there are 827,261 divorces and separations worldwide every year, and of those thousands of people, chances are you know someone who may have to sell their home during this time. With professionals like Mark from Accounting for Divorce by your side, you can anticipate any shortcomings before they occur to set yourself up for success throughout the selling home process.
A few issues to consider and questions that arise when selling the matrimonial home:
- Does a marriage contract exist stipulating how the matrimonial home is to be divided upon a separation/divorce?
- Is the matrimonial home the only property owned by the separating spouses?
- Is there a second property that perhaps could be the matrimonial home? 4) Has there been a material increase or decrease in the value of the matrimonial home from the date of separation to the date of it being sold?
- What are the Principal Residence Exemption rules; how do they apply in a separation/divorce and do both parties qualify to claim this exemption?
- Who is responsible for the payment of the operating costs of the matrimonial home before its disposition?
No doubt that selling your home during a separation/divorce is a difficult process that brings many questions to be addressed. Our team at Accounting for Divorce is well experienced in the issues that arise during the sale of the matrimonial home and are available to provide advice to you and your family law lawyer, in advance of a sale, to ensure that you have considered all the issues involved and hopefully avoid any unwanted surprises upon the sale. For more information click here
