Selling the house during a divorce.
Sell it, or one of you buys the other out. Either way, here is how Florida handles the house.
How Florida splits the home
Florida courts start from an equal split of marital property (Florida Statutes 61.075). The judge can weigh other things, including keeping the home for a child who lives there.
A buyout is allowed too. The court can order one spouse to pay the other in a lump sum or in installments and keep the house. If a judgment is recorded, it works like a deed, so a court order can move title even when one of you won't sign.
Who has to sign
While you are still married, both spouses have to join in selling a homestead, even the spouse whose name isn't on the title. That comes from Florida's constitution, not from the lender.
After the divorce, a couple who owned as tenants by the entirety become tenants in common (689.15). Both of you still own a share until it's sold or bought out.
Timing
No final judgment can be entered until at least 20 days after the petition is filed (61.19). Past that, the calendar depends on your case and your attorneys.
Many couples list during the divorce so the sale and the settlement line up. Others wait. We work to whichever plan your attorneys set.
Taxes worth knowing
The IRS lets a single owner exclude up to $250,000 of gain on a main home and a married couple filing jointly up to $500,000 (Publication 523). You generally need to have owned and lived in the home two of the last five years. For the full $500,000, both spouses have to meet the living-there test.
Transfers between spouses as part of a divorce are not taxed. If your ex keeps living in the house under the divorce decree, that time can count as your use. Florida also lets each spouse carry a share of the Save Our Homes tax savings to a new homestead.
General information, not legal or tax advice. Talk to your Florida family-law attorney and a tax professional before you decide anything about the house.
How we handle it
One price that both of you can see, based on what is selling around you. We keep both parties and both attorneys informed, and we don't take sides.
Questions we get.
Do both spouses have to agree to sell in Florida?
While you are married and the home is a homestead, both spouses must join the sale. If you can't agree, the court can decide, and a recorded judgment can transfer title.
Can one spouse buy the other out?
Yes. Florida law allows the court to order a lump-sum or installment payment so one spouse keeps the home. Your attorneys and a lender will work out whether it is affordable.
Start with a number you can both trust.
Dana and Randy, RE/MAX Aerospace Realty, will price the home on local sales and share it with both of you.