BreakThru Realty

How Do I Sell a Jointly Owned Home After a Divorce?

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

The Short Answer

Both owners have to agree to the sale, the price and the terms, or a court has to order it, and the marital settlement agreement or the final judgment usually says which. Once that authority is clear, the sale runs like any other, with one difference: everything, from the listing price to the offer you accept and the split of the proceeds, has to be documented so that neither side can question it later. A neutral agent and a written pricing analysis protect both of you.

Who Has to Agree

A home titled in both names needs both signatures on the listing agreement, the contract and the deed, unless a court order gives one party authority to sign or a settlement agreement sets out how the sale proceeds. If one spouse will not cooperate, your attorney can ask the court for an order; without that, a broker cannot list the home. Read the settlement agreement or the judgment with your attorney before you call anyone, because it often sets the timing, the minimum price or how the proceeds are divided.

Sell Now, or One Spouse Keeps the Home

The alternatives to a sale are a buyout, where one spouse refinances and pays the other their share, or a deferred sale, where one spouse stays until a date in the agreement, often when children finish school. Each needs a value both sides accept, which is why a written valuation from the closed sales is the starting point whether or not the home is sold now. Consult a mortgage lender about the refinance if a buyout is on the table.

Pricing That Both Sides Can Check

The price should come from the comparable closed sales, in writing, so that neither spouse can say the home was sold too cheaply or priced to fail. Both parties receive the same valuation, the same market updates and the same offers. BreakThru prepares the pricing analysis for both parties and their attorneys as a matter of course.

Running the Sale

Agree in writing who is living in the home and who pays the mortgage, taxes, insurance and repairs until closing, how showings will be scheduled, and who decides on offers if the two of you disagree, often by a threshold price in the agreement. A neutral agent who communicates with both parties equally, and with their attorneys, keeps the sale from becoming another dispute.

The Proceeds at Closing

The closing agent pays off the mortgage and the costs of sale and divides the net proceeds as the settlement agreement or court order directs, which may not be an equal split. Any liens, judgments or unpaid association dues are paid first. Your attorney confirms the split with the closing agent before the closing date; a tax adviser can advise on the capital gains exclusion, which has its own rules for divorcing owners.

Court-Ordered Sales

When the court orders the sale, the order may set the broker, the listing price, how offers are approved and how the proceeds are held. The sale follows the order exactly, with reports to the attorneys and, where required, to the court. We work from the order and keep both parties and their counsel informed at each step.

Talk It Through With a Broker

Every sale is its own set of numbers. Request a free valuation built from the closed sales that match your home, or read the market figures for your county on BreakThru Realty Research.

How do I sell a home after a divorce: Questions

How do I sell a jointly owned property after a divorce?
Both owners have to agree to the sale, the price and the terms, or a court has to order it, and the marital settlement agreement or the final judgment usually says which. Once that authority is clear, the sale runs like any other, with one difference: everything, from the listing price to the offer you accept and the split of the proceeds, has to be documented so that neither side can question it later. A neutral agent and a written pricing analysis protect both of you.
Can one spouse sell the house without the other?
Not if both are on the title, unless a court order or a settlement agreement gives one party the authority. An attorney can ask the court for an order when one spouse will not cooperate.
Who pays the mortgage while the house is for sale?
Whatever the settlement agreement or a temporary court order says. Put it in writing before you list, with who pays repairs and who lives in the home.
How are the proceeds divided?
As the agreement or the judgment directs, after the mortgage, liens and selling costs are paid. The closing agent disburses to each party; your attorney confirms the figures first.

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