Selling a home during a divorce: What you should know

Going through a divorce can be one of the most difficult experiences a person can go through. Even when a divorce is amicable, there are still major decisions to make regarding things like shared finances and belongings, how to care for your family, and what to do with the home you’ve shared. And if you purchased a home together, the uncertainty of what to do with the house can be particularly stressful. Fortunately, you can navigate selling a home during a divorce with the help of a certified divorce real estate expert (CDRE) who understands how the process works.

Amy Herold is a Triangle-based CDRE who specializes in helping those going through a divorce tackle the complexities involved with real estate. Here’s what she says you should know about how to handle it.

Selling a home during a divorce can take a significantly longer time than selling a home does. That’s largely because of the time the divorce proceedings can take. You’ll need to be candid with your attorney about the situation. Sometimes the circumstances determine how it must be handled.

For example, a court order might determine the split the two receive from the proceeds of the house. That means the sale can’t happen until the judge makes that decision.

On another hand, Herold said, one of the parties may agree to purchase the home away from their former partner, which is determined within the divorce.  “A judge cannot — nor can an attorney — just automatically wipe a person’s name off of a loan that they have signed to, even if they are divorced or are getting a divorce,” she said. They will need to go through the proper real estate transactions to change the paperwork.

In simple situations where a couple is amicably splitting and willing to agree on the terms, you may be able to sell faster. Regardless, it’s wise to get advice about the smartest way to handle things to help it go smoother.

Herold says often, people go to a real estate agent they know to try to sell the home quickly. However, that’s not a good strategy. Rather, it’s important to find a person who understands the legal implications involved in a real estate transaction and who understands their place within that transaction.

“The big thing with working with a CDRE is that we are a neutral third party,” she said. “We actually do everything between the homeowners separately. In order for me to be a neutral third party, I have to only focus on what is best for that divorcing couple, and it is the house that they’re selling, the equity that’s within that home, and ensuring that everything goes smoothly with that.”

Her role, she explained, is ensuring that equal representation of both parties in the transaction. A CDRE will meet separately with each individual to discuss the listing, review details, negotiate offers, and close on the home. Because of the legal training involved with CDRE certification, Herold explained she works to understand the court order and give both individuals the specific attention they need to ensure the sale goes well. In short, a CDRE can help remove the emotion and stress involved in the situation.

As you work on selling a home during a divorce, there are numerous considerations you’ll need to make before you finalize the details. Think about how much you’d be willing to sell the home for, and what the lowest amount that you’re willing to accept might be.

It’s important to work through any necessary repairs and to determine how to handle them. You’ll want to talk to your agent about any other details that can help you smoothly take next steps. From staging to prepping the home for open houses, there are things you can do to help the sale go easier.

You’ll also want to make sure you have a plan for next steps once the house sells. Herold suggested waiting on the purchase of a new home until the old house has sold. According to her code of ethics as a CDRE, she said it’s in your best interest to take the time to work through the process.

“Say the wife finds a house. She writes a contract and she’s wanting to close in 30 days,” she said. “Well, if I’m helping that wife as an agent and I know she has 30 days before she needs to close, I am going to be possibly pressuring the husband to take a deal for their existing house to make it so the wife can get her house in 30 days. Now I am not being an impartial third party. If they did not want to wait until their house closed, then I would have to refer them out to another agent to do that.”

Using a CDRE like Herold reduces the pressure and stress involved with selling a home during a divorce. As one of just three CDRE’s in Wake County, she suggests talking to them to understand their expertise and learn why they are the option sellers need to make the entire process easier.