Flip or Flop: How to Handle the House After Divorce
If you’re unsure of what to do with the house after a divorce, get in touch with Spooner & Associates, P.C.
It seems the stars of the HGTV show “Flip or Flop” are headed for divorce. For those who do not watch the show, a married couple, one a designer and the other with an investment eye, purchase homes and attempt to profit from the improvements. The couple is a “rags to riches” story, and their fans liked that they seemed to be on solid relationship footing. Unfortunately, the relationship appears to be ending and the husband has filed for divorce. In addition, their show and their joint business are now on the rocks.
While most of us are not HGTV stars and are not in the business of buying and selling houses, many divorcing couples own real estate and have their own businesses. These items must be dealt with in a divorce and can be very difficult issues. Even what appears to be simple, as in how to handle the house after divorce, can lead to catastrophic mistakes.
For example, a couple may decide that the wife will remain in the home because she is going to be the primary custodian of the children. This may seem to be an easy decision and easily accomplished. What happens, however, if both husband and wife are on the deed and the mortgage? Will the husband remain on both forever? If so, what happens if he wants to purchase another home and can’t qualify due to the mortgage obligation on the marital home? Or, if the wife is late on the mortgage payments and his credit is ruined? Perhaps language will be put in the agreement that the wife will refinance the house. Will she qualify? What happens if she does not? Maybe the couple decides to sell the house. Who picks the agent? How is the list price determined? What if the person remaining in the house doesn’t really want to sell and keeps the house a mess when potential buyers come by?
These are all things that have to be considered in a divorce when real estate is involved. Even when the couple are in agreement and work together, outside forces can get in the way. Recall the housing bubble of 2008-2009. Many couples had divorce agreements that never contemplated what would happen if the value of their house declined. It was never even considered that the house would not bring a profit at the sale and there were many problems with these divorce decrees.
It is extremely important to have an experienced attorney on your side in this situation. You need an attorney to walk through your options and to protect you from making significant mistakes with your real estate. Don’t “flop” on your divorce. Call Spooner & Associates PC today at (678) 714-1131 for peace of mind.
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