leslie wichman - BEST SELLING OPTIONS IN A DIVORCE

BEST SELLING OPTIONS IN A DIVORCE

leslie wichman

Table Of Contents

Moving On

Be Prepared

Marital Settlement Agreement

The 80/20 Rule

Relating The 80/20 Rule to Home Selling

Creating Curb Appeal

Staging with Purpose

Upgrade with ROI in Mind

The Three D's

10. How to Market Your Home

11. Common Seller Mistakes

12. Avoid Costly Mistakes

13. Finding Buyers

14. Be a Power Negotiator

15. The Dos and Don'ts of Negotiating

16. Bargaining Chips

17. Serious Considerations

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18. Ending Thoughts

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Foreword In my 25 years as a broker with several brokerages, now EXP Realty llc, I can honestly say Leslie is a standout. In addition to her vast knowledge of the local real estate industry, she consistently demonstrates an honesty and integrity not often seen in real estate agents. I’ve watched her go above and beyond to close difficult deals for her clients and spend countless hours in and out of the office promoting her listings and reaching out to clients. She is also heavily involved in the community — in fact, you’d be hard-pressed to find someone more well-connected or respected in Mount Dora. Leslie didn't grow up in this area but decided to stay here when she put down roots when dealing with an aging mother with dementia. In short, she knows the area she’s selling, and that’s something you just can’t teach. If you’re currently on the fence about hiring Leslie or considering any other agents, I highly suggest you stop your search. No one has more experience, or will work harder to sell your home than Leslie Wichman. With her on your side and her team, you simply can’t lose.

Sincerely,

Dawn Williams, Managing Broker EXP Realty LLC Dawn.Williams@exprealty.com

Resources The process of selling a home can be stressful, even if you’re working with a professional real estate agent, like myself. Chances are, you’ll have to hire various professionals throughout the process, either to prepare your home for sale, or to fix any of the numerous issues that can pop up in a home inspection. The last thing you want to do is hire an unreliable contractor who delays — or even ruins — your home sale. I’ve experienced firsthand the work of numerous local contractors and professionals. I know which companies will produce the highest-quality work, and which ones to avoid. Because I want my clients to have the most stress-free and successful real estate experiences possible, I recommend only the best professionals in a variety of specialties — from Home Staging Experts, Home Inspectors, Attorneys (modality/ vocation specific) and insurance Agents etc... I have personally worked with each contractor endorsed in this book, and each one comes with my highest recommendation. You can confidently hire any one of these companies or individuals, knowing you’ll be in great hands. In this section, I’ve provided you with a list of resources, along with a brief explanation of how each one can help you have the ultimate home-selling experience.

Have You Gone “Nose Blind?”

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“What is that smell?”

Is that the first thing you want buyers to say when they walk through the door to your beautiful home? Despite how much you may vacuum — and even scrub — your carpets, there’s a chance you may have gone “nose blind” — to quote Febreze — to all the odors they contain. But that doesn’t mean you need to spend hundreds, or even thousands, tearing up and replacing your carpets. A deep carpet cleaning can restore even the oldest, dingiest carpets. Sure, you can rent a unit from a local hardware store to clean them yourself, but if you really want to eliminate troublesome odors and remove any deep, set-in stains, you really should turn to a professional. Various carpet cleaning companies have been helping my clients make a great first impression for years. Location specific. I look for the best in carpet-cleaning technology to restore your carpets and stomp out any odors you may not even realize you have. You’ll be breathing easy — and so will your buyers — knowing your carpets are in tip-top shape!

Companies recommended on request

Clean is Always in Style You may think that to sell your home, you need to do major kitchen renovations, install hardwood floors, and knock down a bunch of walls. And while those changes aren’t necessarily a bad idea if you want to sell for top dollar, they’re not always worth the return on viii

investment.

But do you know what is? Cleaning .

Cleaning and organizing your home before a sale is the easiest way to ensure it sells quickly — and for the most money possible.

So what should you do to get your home in tip-top shape?

• Deep clean every surface — floors, walls, carpets, countertops, cabinets, appliances, toilets, tubs, etc. • Organize and remove clutter. • Consider investing in a storage unit to store knick knacks, toys, tools, old furniture, unused small kitchen appliances, and piles of paperwork. If this sounds like a lot of work, that’s because it can be. You’re much better off leaving these tasks to professionals. You wouldn't go on a date in dirty clothes, and you shouldn't show your home when it’s not looking its best. I recommend the following professionals to take the handle the stress of deep cleaning and organizing your home.

Companies recommended on request

Professionals cleaners are fully vetted and will make every surface of your home look like new. They are efficient and affordable and can deep clean any area of your home you may have neglected over the years.

Companies recommended on request

You may not realize it, but there are professionals whose entire job is to declutter and organize spaces. Whether you need someone to organize your closet space or simply help you get rid of items around the house you no longer use. Companies recommended on request If you need a storage unit, we can find units that are clean, secure, and come in a variety of sizing options. Your items will stay safe while they wait to move to their new home! Why Curb Appeal Matters They say you can’t judge a book by its cover — but it’s also true that books with worn-out or torn covers tend to stay on the shelf. When you’re trying to sell your home, you know you have to prep and clean the inside to get it ready to show. But did you consider how your home might look from the outside? When potential buyers pull up to your property — or even when they’re checking out photos online — the exterior is the first thing they see. If your landscaping is in disarray, or your exterior paint is peeling, buyers may not even venture inside. So what should you do to get the outside of your home buyer- ready? The National Association of Realtors® offers the following tips to enhance your curb appeal:

• Clean exterior walls and windows • Apply a fresh coat of exterior paint • Keep grass green and trimmed

• Clean and repair your roof

Luckily for you, I have worked with lots of reliable contractors who are experts in creating curb appeal. These professionals can help you increase the value of your home and sell for top dollar, fast!

Companies recommended on request

I can recommend landscapers to take your property to the next level. Whether your yard needs a full overhaul or just some fresh mulch and shrubbery, Landscaping companies can meet your needs.

Companies recommended on request

A fresh coat of paint can transform your home from dull and dingy to bright and welcoming. we recommend companies that use only the highest-quality products to transform your home to its most pristine state.

Companies recommended on request

Whether your roof needs to be completely redone or you just need to replace a few shingles, we will find you the best local professional to handle your roofing project. Dozens of former clients have put their trust in my knowledge to find a reputable roofer, and I’m confident you’ll be pleased with their work.

Electrical Issues Can Ruin Deals

Electrical issues are some of the most costly — and potentially dangerous — issues uncovered in any home inspection.

In fact, the American Society of Home Inspectors counts electrical issues as one of the top deal-killers in the home-buying process. Some of the most frequent electrical issues found include:

• Undergrounded three-prong plugs • Painted outlets • Double tapping of circuit breakers • Reversed polarity • Improperly modified electrical panels • Knob and tube wiring • Aluminum wiring • Federal Pacific breaker panels • No GFCI protection

Unless the extent of your electrical issues is a burned-out lightbulb, all electrical work should be handled by a licensed professional. Besides being too complicated for most homeowners to handle, electrical repairs pose a huge risk of electrocution and fire. I’ve recommended reputable electricians to many of my clients in the past. Not only are they affordable, but they perform top- quality work, ranging from fixing faulty outlets to completely rewiring older homes..

Companies recommended on request

Are Your Floors Buyer-Approved?

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If you’ve watched any HGTV show in the last several years, you know one of the first things home buyers are likely to notice is the type of flooring running through the house. If your flooring is dirty, chipped, worn, outdated — or an unappealing color — chances are, buyers will take notice — and move on to the next house. When buyers see bad floors, they immediately see dollar signs. And no one wants to see extra dollar signs before they even purchase a home.

So what kind of flooring should you get?

Based on data from the National Association of Realtors®, 54% of home buyers were willing to pay more for wood floors. But if you can’t afford wood floors, there are many options for wood- look tiles, vinyls and laminates — some even waterproof — that will more than satisfy picky buyers. We can help you with finding all of your flooring needs, from material selection to quick and professional-quality installation. Call them for an in-home consultation today!

Companies recommended on request

Your Front Door: The Ultimate First Impression

Your front door is the gateway to your home.

A freshly stained or painted door, with shiny new hardware and clean glass, says “Welcome home!” to buyers who come to see your house.

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A front door with peeling paint, rusted hardware and fingerprinted glass might just leave them out in the cold.

First impressions matter, and your front door is the ultimate first impression. Stand outside your house, and if you’re less than satisfied with how your front door looks, change it up! Consider a fresh coat of paint or stain — one of the newest trends in real estate is to make your front door pop with a bold, contrasting color — replace old hardware, and clean any glass surfaces on the door. With something as important as your front door, you may want to put your DIY skills on hold. A professional painter has access to the most durable, weather- resistant materials and will create a pristine finish. I always recommend vetted painters to my clients. Their painters are professional and highly skilled. You won’t have to worry about patchy work or unsightly drips. While you’re having your front door painted, walk through your house and consider the impression your paint colors might have. That bright orange you painted your living room in the early 2000s might have seemed like a cool, bold move back then, but it’s likely to turn off buyers who view your home now. Our known painters would be more than happy to take care of all your painting needs!

Companies recommended on request

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Get a Handyman on Your Side

When you finally accept an offer on your home, you may think the hard work is over.

But unfortunately, that’s not always the case.

Once your buyers order an inspection of your home, chances are, they’re going to come back with a list of demands — or ask for a price reduction based on the list of repairs the inspector says they need. But rather than dropping your price, you can turn to a great handyman to make any last-minute repairs and salvage your deal. When it comes to hiring a reliable handyman, you can’t trust just anyone. As a real estate agent, I’ve worked with dozens of local contractors, and I know exactly who you should call. For repair jobs big and small, I always find contractors that are recommended. Whether you’re looking at a simple repair like a broken door knob — or a major fix like a broken staircase — you can trust we'll to get the job done to your highest satisfaction — and please even the most demanding buyers.

Companies recommended on request

Read This Before You Sign a Contract With a Buyer

Imagine taking your home off the market for 60 days while a prospective buyer tries to buy it. Then, 60 days later, the buyer finds out they can’t get a loan. You just wasted 60 days of xv

marketing time!

Now, imagine that during the 60 days, another buyer wanted to buy your home. But the buyer couldn’t purchase it. Why? Because you signed a contract with the first buyer. By the time you find out the first buyer could not obtain financing, the other buyer has already bought a house! Ouch! You just lost a sale! This is why it’s so important to make sure a buyer is able to obtain financing before you sign a contract. Fortunately, I work with local mortgage lenders who can pre- qualify any prospective buyers. Our many known and trusted lenders will tell you whether they’ll be able to obtain financing. It costs you nothing to have a lender prequalify your buyers. Lenders can help buyers get a loan with the most competitive interest rates available. You can rest easy, knowing they’ll be able to obtain financing. This is a free service.. Buyers are under no obligation to use our known lenders a to get a loan, staying local means we have easy access when questions arise. However, they’ll help buyers get the best loan for their financial needs: • Conventional—A conventional mortgage can lead to a low fixed rate or adjustable rate for your primary home, secondary home, or investment property. • FHA—An FHA mortgage is a great program for buyers. Its advantages are a low down payment without private mortgage insurance. The lender process can be streamlined, with no appraisal and reduced loan documentation to qualified applicants. • VA—A VA Mortgage offers many benefits, including no

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down payment and lower interest rates. • USDA—These are only available in certain areas deemed “rural” by the United States Department of Agriculture. Surprisingly, many properties on the outskirts of a metro area will qualify for these loan programs. The advantages of a USDA Mortgage are lower interest rates and zero down payment. Because our known local lenders is familiar with all of these loan programs, they can pre-qualify your buyers and ensure they obtain financing. That way, you avoid wasting time with buyers that will not qualify for financing. Before you sign a contract with a buyer, make sure you give them a call.

Lender list available on request

Is Your Faucet Leaking?

No one wants to find themselves knee-deep in plumbing issues — both literally and figuratively. And even worse, no seller wants a home inspector to discover those issues when they’re just about to reach the finish line of a great deal. That’s why I always recommend my clients have their plumbing inspected by a professional before they put their homes up for sale. A good plumber gives my clients peace of mind in the home- selling process. My sellers know going into the inspection process that everything will check out and won’t delay — or even destroy — their sale.

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Whether you have a leaky faucet or some strange hissing noise you just can’t place, you can trust we'll find to get to the root of the issue and fix it for good!

Companies recommended on request

Pool Worries, Be Gone!

If you own a pool, you know how much work can go into maintaining it. That stress doubles when you’re preparing to sell your home and want your pool to look like the relaxing oasis buyers imagine it to be. Having a pool can be a major selling feature for the right buyer. But buyers looking for a pool don’t want to see your pool and immediately think, “This is going to be a lot of work.”

Before you sell your home, you should consider the following:

• Is your pool clean? If it’s an above-ground pool, are the parts rusting and liner showing signs of wear and tear? If it’s an in-ground pool, are the cement, tile and grout spotless? • Are there any broken parts or leaks? Does it have broken tiles or cracked cement? • Is it fenced in? You may run into zoning code issues if you don’t have a proper fence installed. • Is it low on water?

If buyers don’t notice these issues themselves, a home inspector

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will be sure to point them out. You’re better off handling any potential issues before you put your home for sale, rather than scrambling to fix them later on. Pool maintenance can be stressful — and costly — if you don’t know what you’re doing. This is one job you’re better off leaving to a professional. For all of your pool maintenance needs, I will find a reputable pool guy for your area. They’ll turn your pool into the dream space every buyer wants to see.

Companies recommended on request

The Roof Over Your Head The old saying goes, “As long as you have a roof over your head, clothes on your back, food on the table, and good friends and family, you have all you need to live a happy life.” But if your roof is leaky, old, or missing a few shingles, buyers won’t be happy making an offer on your home. Roof issues can be a major sticking point for buyers — and will 100% turn up in a home inspection. Likewise, many home buyer programs won’t finance homes with old or broken roofs. If you want to save yourself the hassle of scrambling to make repairs at the last minute, I recommend having your roof checked out by a licensed professional before you put your home up for sale. Whether your roof needs to be completely redone or you just need to replace a few shingles,we work with some of the best local professional to handle your roofing project. Dozens of former clients have put their trust in our recommended companies, and I’m confident you’ll be pleased with their work.

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Companies recommended on request

The Secret to Selling for Top Dollar According to the National Association of Realtors® 2017 Profile of Home Staging, about one-third of buyer’s agents said that staging a home increased the dollar value their clients offered between 1 and 5% compared to other similar homes on the market that were not staged.

So what exactly is staging?

Home staging is the act of preparing a home for sale by arranging furniture and decor that allows potential buyers to picture themselves living in the home. The goal of staging is to make a home appealing to the highest number of potential buyers, causing it to sell more quickly and at a higher price point. As a real estate agent, I have a pretty good understanding of staging concepts. But I really prefer to recommend a professional to give my clients the best chance of selling their homes for top dollar in the least time possible. Getting a home staged has transformed spaces inside my clients’ homes. Using connections for furniture rental companies and years of experience in the art of home staging.

Companies recommended on request

Ensure Your Closing is Smooth and Easy

Here is everything a great title company can do to ensure you have a stress-free, smooth, and easy real estate closing: • Solid Communication. They keep you updated on what’s happening at all times and respond to your inquiries in a timely manner. • No surprises. They work hard to get everything lined up properly early on in the transaction, so there are no surprises later. • Convenient closings. They work hard to close at a time that is convenient to your schedule. If you can’t make it to the closing, they’ll handle it with a convenient “mail- away” closing. • Competitive Rates. They work hard to offer their services at a competitive, affordable price. • Knowledgeable. They understand that real estate is a complicated industry. If you have any questions throughout the process, they’ll answer them for you. Here’s the first step to get started on your stress-free, no-hassle closing.

Find Out Exactly How Much Money You’ll Receive on Your Sale.

Our highly used title companies will put together a free, no- obligation closing cost estimate to show how much money you’ll receive from your home sale. The free estimate will itemize all of your projected closing costs and fees. To request a copy of this free estimate, send an email to me at leslie.wichman@exprealty.com. Or, you can call or text my cell phone at 402-740-7895. I'll gladly give you the name of a fabulous title agent in your area. xxi

Testimonials & Reviews for Leslie Wichman Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me:

Leslie had a tough job, bu tshe did it!

We were tough clients! We were moving to The Villages and didn’t have a lot of time to look at houses, having to deal with our relocation, and all of the other challenges that came along. But, Leslie went above and beyond to help us. Even now, one year after the sale closed, I can still call her for business and service recommendations in the area —she seems to know just about everyone, and is very happy to help.

Leslie is the best agent in Central Florida!

I’ve used Miss Leslie twice so far, and I was impressed both times. I bought my dream home with Miss Leslie's help a year ago. She worked long and hard to find me the perfect home. And just recently sold another property of mine. Everything went quickly and smoothly. Both of my real estate deals were done very quickly and professionally.Leslie is honestly the BEST in the business. I would highly recommend her.

Leslie's perseverance got me the house

My experience with Leslie during the entire home-buying process, from start to finish, has been nothing short of exceptional. I have a unique work structure, and because of this, it was very difficult to find mortgage lenders that would approve me for a home. I was very frustrated and on the verge of giving up, but Leslie insisted that we continue searching. Not only did we find a mortgage lender but also a mortgage that I felt great xxiii

about. Her perseverance is the reason I am now a homeowner. She is professional, punctual, knowledgeable, and very easy to work with. With the highest regard, I will recommend Leslie to all my friends and family.

Very attentive to concerns, details, and negotiations

Leslie helped me find a house by literally picking it out for me. Every house I wanted to go to, I got there and didn’t love it. Leslie was busy taking note of the likes and dislikes I was stating and said “I have a house that you’re going to love”.... AND I DID! I went back 4 or 5 times to show other members of my family, and she accommodated me without complaint. I was a first-time homebuyer, and she walked me through the steps of everything, gave me advice, and constantly followed up to make sure I was doing OK. With her help, I was able to close on the house early, right before I started my new job. I would recommend Leslie to EVERYONE, buying or selling. Leslie made it so easy. She guided us through the entire process. She recommended great people to work with every step of the way. She was available almost 24/7 to answer any questions we may have had. With her high standards, expertise in the industry, and patience, we would recommend her as a Realtor to anyone looking! She was amazing!

Leslie even advised me on how to prepare my house

Miss Leslie was a gem. In addition to being highly knowledgeable about the real estate market, with many years of experience, she is a consummate professional. Leslie was extremely easy to work with, gave me very good advice about preparing my house for sale and was very responsive during the entire process of receiving offers, selling and closing. I would work with her again in a heartbeat. She's that good.

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Leslie is the first agent I would call Leslie and her team were able to rapidly list, show and sell my property. Being an expert in real estate, she was spot on in her pricing of my property and getting this deal completed. Overall, I highly recommend her and her team. If I want to buy real estate, Leslie will be the first person I’d call.

Leslie got us an offer in three days!

Leslie was the consummate professional during our stressful and difficult process. In the midst of juggling a ‘failed’ marketing effort with another agent, she presented a well thought out plan and strategy to sell our home in short order. We needed to move quickly due to a growing family and another baby on the way. She helped alleviate that pressure by securing an acceptable offer with 3 days of listing. We put pressure on her, and she delivered. We couldn’t thank her enough.

Leslie kept us calm throughout the process!

Leslie always made herself available to answer questions. She worked hard to sell our home and find the best fit for our new home. She and her team worked with us through the entire process and kept us calm when we got anxious.

I am 100 percent satisfied!!

Leslie is professional and knowledgeable about everything. She is also always available. I would definitely recommend her to anyone. Very smooth transaction from start to finish. I felt confident with her experience.

Leslie found us our dream home

Leslie was very efficient and helped us find our dream home within a few short months. She was able to negotiate the price

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that we wanted for the house. Overall, I would look for her again to help us look for a house if need be in the future. Thank you so much!

Efficient communication and service

Leslie and her staff were very helpful in selling our condo. They kept me informed frequently by email, sending reports on showings, offers, and feedback from potential buyers. We are very satisfied. Leslie will get your house sold fast! Leslie is great and has the expertise to get your house sold. The communications throughout our sale (from beginning to end) has been outstanding. Leslie understands the stress involved in selling your house, and she updated our family consistently! This made us feel we were in good hands. I have worked with numerous agents, and I highly recommend her to represent you when it comes time to sell your home.

Excellent experience topped with a personal touch

Excellent experience all around, not only knowledgeable but Leslie and her team have a very personal touch I felt like family throughout the entire process. She always took her time; we never felt rushed or like “just a number.” I sold my home and bought with her. We had lots of questions she gladly answered them with no problem and guided us through the entire process, eliminating lots of stress. I truly appreciate that and would recommend her and her team to family and friends.

Sold our home in a week!

Leslie was an absolute dream to work with. Professional, responsive, efficient, and my moral support when in time of need...unfortunately for her. We sold the home within a week.

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What else can you ask for? Grateful, grateful, grateful!!!

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About Leslie Wichman Leslie started in Real Estate as an investor and landlord before transitioning into selling real estate by helping current and past tenants purchase their first homes and getting out of the "paying a landlord's mortgage" and into making their home grow equity for themselves. Even though many people can't afford to purchase a home, those that could, were always grateful for the professional courtesy given. Having been an investor for 12 years, being a Real Estate agent for 8 years (at publication) is more rewarding. This story perfectly sums up the kind of agent Leslie Wichman is, and the type of agent she continuously strives to be for her clients. Leslie was taught at a young age that if you want something in life, you have to work for it. So that’s what she did. And she worked hard. Leslie was raised in a small village in Northwest England with 1 sibling. As a child, Leslie had aspirations of being a Cosmetologist and animal rescuer. Never in a million years did she think she'd emigrate to the USA (1984) then after many years raising children, stumble into the real estate industry, but you can’t always predict where or when you’ll discover what you’re meant to do in life. As the years went by, Leslie worked her way from military wife and homemaker to today being a professional Real Estate agent, never wavering in her resolve to become the best version of herself with each career move. Leslie got into the real estate industry 9 years ago when also going through divorce and set out to help others going through the same situation. As her career advanced, Leslie found her stride working with home buyers and sellers with many specific needs and now

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specializes in several areas, specifically Divorce listings where being an unbiased medium allows for a smoother property sale with understanding the emotions and stress involved.. Leslie has been in the divorce situation personally and understands the dynamics involved. Throughout her career, Leslie has earned numerous accolades, including: • Divorce Specialist • Senior Real Estate Specialist .. helping aging clients with all aspects of real estate from downsizing, Senior Loans (HECM) and probate sales • Transaction Coordinating over $45 million in sales since 2019 Leslie lives in Lake Count FL with her beloved cats. In her free time, she enjoys going to the beach, volunteering at fairs and senior facilities, and spending time listening to music. Leslie aims to provide the highest level of service to her clients and takes pride in helping them achieve their real estate goals.

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Here’s How You Can Get F ou Can Get Free Professional-Quality Pictures to Market Your Home our Home

Most buyers “view” your home for the first time when they see it online. The pictures they see form their “first impression” of your home. As you know, first impressions matter! This is why professional-quality pictures are so important to your sale. If the buyers like your home — based on the pictures they see online — they are more likely to schedule a showing. But, if they don’t like them, they are less likely to schedule a showing — and, that’s a potential buyer you miss out on. Because pictures are so important, I’m offering to take free professional-quality photos of your home. You can use these pictures to market your home for sale by owner. This is 100% free with no obligation — provided you only use them to market your home by owner. Now, I’m sure you’re thinking, “Why would a Realtor offer me this for free? It doesn’t make any sense.” Here’s why. It’s like when you go to the grocery store and someone offers you free samples. They give you the food samples, whether or not you buy more food from them. That’s why I’m giving away the pictures. They are a free sample of what I can do to sell your home. So, if you’d like free professional-quality photos of your home, give me a call at 402-740-7895.

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We’ll schedule a time that works for both of us for me to come and take pictures of your home. I look forward to helping you!

Best Regards,

Leslie Wichman EXP Realty LLC leslie.wichman@exprealty.com 402-740-7895

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CHAPTER 1 Moving On

Divorce is not easy. Even the most amicable separations are plagued with disappointment, lack of communication, and failed expectations. In the best-case scenario, two people who are dissolving their union will work together to resolve their differences productively and part ways, hopefully without drawing blood. Unavoidably, though, during the process, you and your spouse’s emotions will fall prey to a myriad of changes as the marriage, family, and shared assets are legally separated. Adding to the stress is the sale of the family home, which is typically the largest asset in the marriage. This can evoke tremendous emotions: sadness, anger, sentiment, and disappointment, to name a few. The combination of the stresses of the divorce with the sale of the family home requires patience, diligence, and great personal fortitude. With the help of seasoned, experienced professionals — such as attorneys and real estate agents — divorcing couples can successfully move through this challenging phase of their lives and on to their future. The phrase “and this, too, shall pass” sounds like a bad cliche in a moment like this, but it's one worth keeping in mind. No matter how bad “it” gets, it will eventually pass. The divorce will become final. The house will sell. The children will adapt, and life will go on. This is where that personal fortitude will come in handy. Decisions regarding the family home are not only emotional, but mired in legal maneuvers and decisions as well. Divorce laws vary from state to state, so licensed legal counsel is your best source of information on how to protect both parties’ interests.

Many questions arise when trying to sell your home during a divorce. What needs to be done to ensure a quick and profitable sale? Who will choose the Realtor®? When is the best time to list a home? Who bears the financial responsibilities of the sale? You can proactively allay your fears and clear up misconceptions by doing your due diligence and researching what to expect throughout the selling process. Every divorce has a unique set of circumstances. This book is not intended to be a legal guide or to dispense legal advice but to provide you with a source of information regarding the sale of your marital real property. Becoming familiar with some real estate terminology and options will give you a better understanding of your situation and confidence that, indeed, “this too shall pass.” Some states are known as “community property” states and others are defined as “equitable distribution” states. Community property states follow the rule that all assets acquired during the marriage are considered “community property.” There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska is an opt-in community property state that gives parties the option of making their property community property. The remaining 41 states follow the laws of equitable distribution, which means property acquired will be divided between the spouses in a fair and equitable manner. The court determines who receives what based upon a variety of factors, such as the relative earning contributions of the spouses. In community property states, on the other hand, all income and assets earned or acquired during the marriage are considered to be equally owned. This applies to all debts, no matter who created the liability. In a divorce action, these will be divided equally.

In addition, there are mutual court orders that automatically protect marital properties. An automatic temporary restraining order prohibits spouses from selling, transferring, or borrowing against property when a divorce is filed. Again, any orders should be discussed with your attorney, as this protection varies from state to state. The family home is typically a couple’s most valuable joint asset and must often be sold in order to equally distribute its value between the two spouses. Therefore, it is vital for you to understand the relationship and difference between a mortgage deed and a property title. Mortgages are conditional legal agreements made for the purpose of buying a property/home. The lender’s security interest is on record when the title is registered. The mortgagee (lender) may obtain a foreclosure order to take possession if payments of the debt are in default. A property title refers to ownership of that property and the right to use it. A person on the title can transfer ownership to another party but cannot transfer more than he or she owns. Some divorcing couples utilize a quitclaim deed, which transfers ownership from one spouse to another, but it does not transfer financial responsibility. One spouse may transfer title of the home to the other and consider himself or herself free from the financial responsibility of the mortgage payment, but this is not the case. The loan payments are the responsibility of the parties on the mortgage. In order to change the names on the mortgage, one spouse must obtain financing with which to buy out the other. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal adviser. The intent of this book is to provide information regarding the sale of your home within the framework of a divorce; it is not intended to provide legal counsel or advice.

CHAPTER 2 Be Prepared

Step one in successfully handling the disposition of the family home in a divorce is to have a clear understanding of your financial standing. Knowing your precise financial situation throughout the emotional turmoil of divorce will keep you from making snap decisions that could severely impact your financial position. It is crucial to know who bears legal financial responsibility for making the mortgage payments. If both spouses are listed on the mortgage agreement, they are equally obligated to the lender, whether or not their name is listed on the property title. Removing a party from a property title does not relieve the financial obligation of that party. Two signatures on the mortgage means two responsible parties. This also includes the homeowner’s insurance policy. It is important to know who is the beneficiary and if both parties are insured. For the previously stated reasons, it is critical that you collect and immediately provide to your lawyer all information regarding your home insurance, property taxes and liens, mortgage and marital debts, and marital assets. The more prepared you are to face your financial future, the more secure you will be moving forward. Knowing where every dollar has to go will help you make better decisions and avoid adding undue additional stress to the already uncertain future that accompanies divorce. Knowing where you stand financially greatly influences your decision to keep, sell, or buy out the family home. There are many considerations for each option, and they all require a significant amount of due diligence, financial planning, and difficult 6

decisions.

Affordability and objective forethought are the keys to your decision-making process. Poor decisions can affect you and your former spouse, long after the divorce is finalized.

KEEPING THE HOUSE

When divorcing couples have school-age children, they often decide to allow one spouse to remain in the home to avoid disrupting the children’s routine, school attendance, and social relationships. This can be accomplished with written agreements between the spouses. Equitably allocating home expenses and mortgage payments by percentages or mutually agreeing on the delegation of financial responsibility will allow your family to focus on what matters most: the children. A clear-cut, signed agreement drawn up by a mediator will help avoid contention surrounding responsibility for the maintenance, expenses, and future sale of the family home, whether it be to the spouse who remains in residence or an outside buyer. This is why it is important to know your financial position and how much each spouse can contribute. If one spouse fails to make their share of payments, it can negatively affect both parties’ credit ratings and complicate the later sale of the home. If each spouse has provided appropriate evidence that they have sufficient resources to maintain this type of arrangement and is willing to participate in the agreement, this may be the right path. Some couples choose to reside in the home as roommates for different reasons. It might be that neither spouse is able to afford both their share of the home and a new residence, or it could be to decrease the abruptness and difficulty of the children’s transition. If, later, one leaves, that person will have increased financial obligations in finding a new place to live, so give serious

thought before choosing this option.

Be aware, though, that some spouses are tied to the home, not only by their children, but by their own emotional investment. The house represents stability and a happier time and provides shelter from the trauma of divorce. In keeping it, they may feel more in control of their situation. Some may think that keeping the home makes them the “winner,” despite the financial hardship it can bring. It is difficult enough to deal with divorce without later learning that unforeseen or unbudgeted expenses have crept in and taken a big bite of an already tight budget. Be realistic about what is affordable.

SELLING THE HOUSE

For most couples going through a divorce, selling the house is the best solution. Selling a home under any circumstances takes a great deal of time and effort, so the addition of the emotional stress of divorce can make the task overwhelming.

LEGALITIES

The termination of a marriage requires the division of real property. Marital property belongs to both parties, regardless of whose name is on the title, and each party is entitled to their equitable share. Some couples have a legal agreement beforehand, which provides a simple solution to property division. Some couples are able to use mediation to divide assets, but others are unsuccessful in negotiating equitable terms and must turn to the courts to rule on the division of their real property. Again, this book is in no way a substitute for professional legal advice. Always consult your attorney regarding the division of real property. Many couples enter into a mortgage based upon the expectation of a two-salary income that generates enough money to cover the

monthly mortgage payment, upkeep, utilities, and unexpected repairs. It may be that neither spouse is in a financial position to singularly carry the full financial burden, and neither may be in a position to buy out the other. Preventing default on the mortgage is the most common reason divorcing couples choose to sell the family home. Monies budgeted for the upkeep of the home, property taxes, home insurance, home security, and house payments may or may not still be available when couples split. Couples who sell their homes before divorce have the advantage of the capital gains tax exclusion of $500,000. A divorced person selling a home receives 50% of the tax break. There are other tax benefits available when substantial equity growth has occurred over years of owning a home. These are best discussed with your lawyer or tax professional to ensure you make financially sound decisions about when to sell your home.

THE EMOTIONAL SIDE OF SELLING YOUR HOME

If the marital home has been the hub of happiness and family life, it may turn out to be a constant reminder of what once was and is no more. The good memories the home represents are now tainted by the unhappiness and pain of divorce. No matter how strong sentimental value may be, often the best option is to sell the house and move on. That way, both spouses get some money to make a clean break and start fresh. Once you’ve decided to sell, there is a long “to-do” list — a list that is difficult under the best of circumstances and only made more difficult with the added emotion of divorce.

LIABILITY

The liability of keeping a home may be the best reason to sell. There are various ways to keep a house with one spouse remaining and the other departing, but they all carry risks and challenges. An equity buyout occurs when one spouse keeps the asset, and, in exchange, compensates the other for his or her

share of the equity.

THE BUYOUT

If one spouse is in a financial position to remain in the home, it may be easier to buy out the other’s share of the property, which would entail refinancing the home. The real challenges come in working out the details. There could be disagreement about the selling price or the appraisal value. Or, the equitable division of the property may not meet expectations. Other questions that arise include the possibility of giving up marital property rights in exchange for other assets, like investments. The ex-spouse may lose out on future appreciation of the house. It is crucial to know that questions like these will arise when it comes to the division of property in a buyout situation and that you have to be prepared to address them. Refinancing the home in one spouse’s name means not only settling the previous loan but paying the selling spouse their portion of the buyout. As an example, if the principal balance owed is $100,000, and there’s another $100,000 in equity, one- half of the equity ($50,000) would be due the selling spouse, and $100,000 would be required to pay off the principal. The refinanced loan would have to be at least $150,000. If the house value has appreciated, who is entitled to the equity? What if the property is appraised lower than the current loan? All scenarios must be considered before deciding on a buyout. Again, knowing your financial standing before filing for a divorce is paramount.

CO-OWNERSHIP

If you or your spouse want to keep the house and buy out the other, but need time before this can be accomplished, co- ownership is a possibility. However, maintaining a clear channel of communication with the ex-spouse is a major part of co- ownership and one of the most difficult to achieve because it

requires a lot of mutual trust, something that is typically lacking in most divorce scenarios. The goal is to move forward, so any concessions made between the spouses benefit not only both parties but especially the kids. Maintaining a civil, business-like relationship in front of your children will help them maintain stability and keep them from moving away from their home, when they’re already adjusting to a lot of change. If one of the spouses can occupy the home with the children and make the mortgage payments until they can manage a buyout and become the sole owner, it’s a win- win. The drawback to this type of arrangement is the negative consequences if the spouse in residence defaults on mortgage payments. Both parties are still responsible, and missed payments will affect both spouse’s credit scores. Moving forward with a new life can be tricky in a co-ownership agreement because consistent communication is necessary, and that isn’t always (or even usually) easy for divorced couples. House payments, insurance premiums, utilities, and necessary repairs are guaranteed financial obligations. What if the utilities are shut off due to nonpayment? What if the home heating and air-conditioning system terminally fails? What if you moved two hours away and your ex-wife needs you to help with a fallen tree because she can’t afford to pay someone to dispose of it? What if the resident spouse has to move out because s/he cannot afford to stay? What if the resident ex-spouse files bankruptcy and risks losing the house? These are all very real possibilities. Co-ownership must be considered carefully, and a knowledgeable attorney dedicated to protecting your family’s well-being will be your best source for guidance on the complexities that may arise. An agreement can be created to address all the obligations mentioned previously and protect both parties at the same time.

No matter the option you choose, the mortgage must still be paid. Selling is the only alternative if neither of the spouses can afford the home on a single income. A short sale is possible if the home is going into foreclosure. You can come to an agreement with your lender to sell the home for less than is owed. Divorcing couples with good credit may find more favor with their mortgagee to obtain permission for a short sale. Walking away from your home and mortgage is not tolerated by the courts. The lender will add to the complications of your divorce by taking legal action to receive the remaining balance. You can find yourself in court if you or your spouse is uncooperative or is demonstrating an obstructionist attitude, which will cost more time and more money. Many divorcing couples end up using up what equity they had in their marital property on legal and court fees. Refusing to sign papers to sell the home or refusing to help pay for the mortgage will give a judge no other option than to order the home sold on the court’s terms. When a divorce action is filed, an automatic temporary restraining order can be issued to prevent spouses from selling or borrowing against marital property. Discuss this option with your lawyer to make sure your stake in the marital property is protected. Less than one-third of divorces end up in court due to disagreements over property division, but if you’re in that unfortunate one-third, going to trial doubles the cost of the divorce. An average divorce costs $11,000 if settled out of court. That amount will at least double if you have to go to court for resolution, which will take a serious bite out of your home’s equity. Many divorcing couples who want to limit legal fees as much as possible, as well as the time it takes to settle, choose to sell their home. Surveys show that couples who resolved their property

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