What You Should Know if You Own a Home
In a perfect world, we’d plan ahead for all those “just in case” issues that might happen if we decide to divorce. But many of us get caught up in the minutia of planning a perfect wedding and a lifetime with the one we love. Often important issues go undiscussed prior to the marriage. Now you and your spouse are divorcing and need to decide how to split the equity in that lovely home you bought years ago. In addition, if one of you wants to buy the house all the issues that go with selling need to be considered.
Realtors and experts in the housing area say that the exceptional housing market, though still pretty great at rate of 30.7%, is transitioning downward. Cancelled deals under contract in June were at 15%. Some people are waiting to sell, and many people are taking their time about buying.
You may wish you had taken that real estate class in college!
Now is the time to look seriously at the market, follow its ups and downs and together determine what’s right for both spouses. Don’t rely on the previous market to make your decision. The housing market changes rapidly. The intense housing market seen in the past couple of years caused high demand and it was often beneficial for divorcing couples to sell their home and share the equity. With a volatile market, couples may have to think differently.
Decreased Market Demand can be an Advantage
When there is intense market demand, the spouse buying the property incurs the most risk (a premium price for the house and the risk of a volatile market) but often the most benefit as well. When market prices head downward, the spouse that is vacating the property may also benefit. The decrease in housing demand, more inventory available and price decreases, will maximize an equity buyout and aid in getting the highest value possible for the sale of the home
When the housing market was rising, divorcing home owners were in a positive home selling situation. Buyers were paying the high prices. Now with housing demands decreasing, there is still room for optimism. If couples can avoid overpaying on their property in the settlement, there’s a good chance they both can find affordable housing.
Consult Professionals
If you need help making decisions, it’s a good idea to work with real estate and lending professionals who know the market and can help guide both spouses through the process. The spouse leaving the property will want to see the highest value for the home to maximize their equity, and a decline in the housing market impacts their settlement. The spouse who is maintaining the home wants the lowest value possible to minimize their payout.
There’s always a chance that neither spouse wants to buy the house. Then spouses must enlist a realtor who finds buyers who always want the best deal. Since the realtor needs to be paid for their service, this situation is the most expensive and often the most contentious.
Avoid the Problems
A Fair Way Mediation will help you safely and successfully navigate the myriad issues encountered in divorce including equitable division of property issues. Agreement on how to split marital assets and debts can become overwhelming and frustrating to many couples. Our goal is always a positive outcome for spouses and families. We believe most people would rather have a problem free divorce that satisfies both spouses rather than a contentious one that leaves everyone unhappy.
For over 30 years, A Fair Way Mediation has been helping couples with relationship issues to negotiate a positive resolution to their issues. Our mediation experience includes success with domestic partnerships, traditional marriages, same sex marriages, military marriages, and alternative relationships. Our mediators are skilled in the technologies of virtual mediation and will guide you carefully through the process. Mediation works equally well for non-criminal disputes such as landlord tenant, family, and HOA issues. We have successfully mediated issues throughout Palm Springs, Riverside County and San Diego.
Our offerings include Zoom, Skype, video chat and in-person sessions. Mediation is a voluntary process and both parties in the relationship must be willing to try mediation. Our free 30-minute consultation with both parties involved, will help you decide if you want to try mediation. For a free evaluation, call us at 760-227-5090 or 619-702-9174, or complete an online request at www.afairway.com. Offices in Coachella Valley and San Diego.
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