Selling Your Home After a Divorce: What You Need to Know

Going through a divorce is already tough, and adding the task of selling a home on top of it can feel overwhelming. Whether it’s a mutual decision or one person needs to move on, selling a home after a divorce comes with its own set of challenges.

But no worries, it's entirely possible to sell your home fast in Texas even under these difficult circumstances. 

Here’s what you need to know about selling your home after a divorce, with some helpful tips to make the process smoother.

1. Decide what to do with the house

The first big decision is whether to sell the home, and this is usually agreed upon during the divorce settlement. If both parties are on the same page, great! If not, this step can become tricky.

Generally, there are three main options:

• One spouse keeps the house and buys out the other’s share.
• The house is sold, and the profits are split.
• One spouse lives in the house temporarily (often if there are children involved), with plans to sell later.

If selling is the chosen option, then you’re both likely ready to move on and start fresh, which can be a positive thing. 

2. Get on the same page

Selling a home after divorce means you’ll need to work together, at least until the home is sold. That’s easier said than done, but it’s essential for getting the best outcome. Keep communication open, even if it’s tough. Agreeing on the listing price, the realtor, and how to handle offers is important.

Tip: If emotions are high (which is totally normal), it might be helpful to work with a real estate agent who can act as a neutral third party. They can help facilitate decisions and make the process feel less personal. After all, you’re both aiming for the same thing: to sell the home fast and move on.

3. Manage the profits

Once the home is sold, there’s the question of how to divide the profits. This is usually outlined in the divorce settlement, but things like the mortgage payoff, closing costs, and agent fees all need to be factored in. After those expenses, the remaining profits are typically split according to your agreement.

Pro Tip: It’s a good idea to work with a financial advisor or a real estate agency to help you plan what to do with your share of the money after the sale. Whether it’s finding a new place to live, paying off debt, or saving for the future, a little advice can go a long way.

4. Prepare the home for sale

Like any home sale, you’ll want to make sure the house is looking its best. Declutter, deep clean, and consider making minor repairs or improvements to boost curb appeal. If one spouse has already moved out, staging the home can help make it feel more inviting to potential buyers.

Buyers want to see a house they can picture themselves living in, not a reminder of someone else’s life. (Though that sounds a little bit dramatic, it's true)

5. Consider taxes

Divorce brings up plenty of financial questions, and selling a home is no different. If you’ve lived in the home for at least two of the last five years, you may be eligible for a capital gains tax exclusion.

As a couple, you could exclude up to $500,000 in profits from being taxed. But after the divorce, each individual may be able to exclude up to $250,000. It’s best to consult a tax professional to make sure you’re making the best financial decisions.

You may also visit this Simple Guide to Houston’s Property Taxes for Sellers.

Final thoughts

Remember, the goal is to sell your home fast in Texas so you can both move forward with your lives. Focus on teamwork, clear communication, and relying on professionals to help smooth the process. This way, you can turn a difficult situation into an opportunity for a fresh start.