Many people navigating divorce find that the easiest way to divide the equity they have in their home is to sell the house and split the proceeds. If you count yourself among those considering selling your Minnesota home due to a divorce, you may have questions about when the right time might be to sell it.
There is no one-size-fits-all answer to this question. Instead, market conditions and other variables helping determine when the right time might be to sell your home. However, selling the home before your divorce becomes final has benefits, and so, too, does selling it afterward.
Benefits of selling the home before the divorce
If you have a considerable amount of equity in your home, it may serve you well to sell it ahead of time so you have a nest egg to use for a down payment or security deposit somewhere else. Selling the home before your divorce finalizes may also make it easier for you to make a fresh start and let go of the past. It may, too, help you avoid capital gains taxes.
Benefits of selling the home after the divorce
If you live in an area where home values are climbing higher and higher, it may benefit you to wait until after your divorce to sell the home. Trying to sell the home before your divorce may also lead to divorce delays that you might be able to avoid by waiting until later.
While there are perks that come with selling your home before or after your divorce, there are also drawbacks associated with each option. The more you understand the advantages and disadvantages that come with each option, the better the chances of you making an informed decision.