You need to know that when going through a divorce, you have options with the marital home.







One person buys out the other’s share of the house.

One of you may want to retain sole ownership of the marital home without the upheaval of moving out of comfortable surroundings. If either spouse decides to keep the home for themselves, both parties must determine how to handle future mortgage responsibilities and any equity in the property.
A buyout works only if you've got the cash on hand to fund it, or if you can qualify for a new mortgage.
While there is value to staying in the home to provide continuity, it's important to be realistic about what you can actually afford. If you can't cover the mortgage, property taxes, maintenance and other expenses on your own, you may end up in serious financial trouble after your divorce.



Sell the house now and divide up the profits.

You can sell and split the proceeds of the marital properties. You may not owe federal tax on your post-divorce home sale profit if you meet these rules:

• Your profit it doesn't exceed $250,000 (filing single).
• The home was your principal residence for two of the past five years.
• You haven't used the home-sale profit exclusion in the past two years.

Your primary consideration under these circumstances is to maximize your home's selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome.
As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split will be. Note that the dividing marital property, appraisal minus mortgages does NOT necessarily equal equity. This incomplete equation can leave your house over-valued and that can work against you. More real estate due diligence is needed earlier in ones divorce process, and this is where an REALTOR® experienced in divorce will be worth their weight in gold.



Keep the house until the children move out, then sell.

Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. This is common where children are involved. 
Often one parent will remain in the home with the children while the other one moves out of the house during the divorce. 
When the children leave home, the couple sells the home and divides the profit. If you're the one who moved out and you haven't lived in the house in two of the past five years, you may or may not owe taxes on the profit from the home sale.
Fortunately, there's a work-around. If your divorce or separation agreement outlines your future plans to sell the house, the IRS considers that as meeting the two-out-of-five year residence rule.
Keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale. Also, it is a possibility that the other party can decrease the value of the home by failing to maintain it, losing it to foreclosure or having a lien placed on it due to unpaid property taxes.

You don't have to go it alone

You should understand both your legal rights and economic realities before making any decisions. One of your most valuable resource will be a real estate professional that has been trained to understand the unique challenges that govern the dissolution of a marriage.

Bill and Shirley will help you make the most informed real estate decisions. Their knowledge will make a difference as they work to create an easier transaction for both parties and their families.


Shirley Jenkins
303-324-4401 or email Shirley.


Bill Leeper
720-480-6505 or email Bill.


Keller Williams Realty-DTC
6300 South Syracuse Way
Suite 150
Greenwood Village, CO 80111


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