How Do You Sell a House During a Divorce in Sacramento County?

Selling a house is stressful in a good year. Selling one while a marriage ends adds a harder layer: two owners who may not agree, two attorneys, and a lot of feeling attached to the rooms.

The process can still be calm and fair. At Surroundings, a real estate and lending brokerage, we work with both owners in Sacramento County, share the same information with each of them, and follow what their attorneys and the court decide.

Often, yes, if both owners agree or the court orders it. Many couples sell during the case and hold the proceeds in escrow or a trust account until the court or a written agreement divides them.

Your attorneys decide whether and when that fits your case. Our job is to make the sale run so the numbers are clear to both sides.

Everyone on title signs, in nearly every case. Both spouses usually sign the listing agreement, the purchase contract and the closing documents.

If one spouse will not sign, the other cannot simply list the home alone. That becomes a question for the attorneys and, if needed, the court. For Sacramento County, family law cases are handled at the William R. Ridgeway Family Relations Courthouse, 3341 Power Inn Road.

California Family Code 760 says property acquired by a married person during the marriage while living in California is community property, unless a statute says otherwise. Family Code 2550 then directs the court to divide the community estate equally, unless the spouses agree otherwise in writing or in court.

Real cases are rarely that tidy. A down payment from before the marriage, an inheritance or a refinance can change the picture. That is legal work for your attorneys, and we follow their agreement on how the proceeds are split.

Start with one set of facts both owners see at the same time. We prepare a market analysis from recent sales of comparable homes nearby and send it to both owners, and to both attorneys if they ask. Some couples also order a formal appraisal.

When the price, the repairs and the timing come from shared numbers, there is less to argue about. We put every recommendation in writing so neither owner has to wonder what the other was told.

That is decided by your agreement or a court order, not by the listing. Someone needs to keep paying the mortgage, taxes, insurance and utilities, because a missed payment hurts both owners' credit and both owners' net.

If one spouse has moved out, decide who handles showings, yard care and access before the home goes on the market. A short written plan saves a lot of phone calls.

You may owe nothing, but ask your CPA. IRS Topic 701 describes an exclusion of up to $250,000 of gain per owner, or $500,000 for a joint return, for a home owned and lived in for two of the last five years.

IRS Publication 523 also says that a spouse who moved out may still be treated as using the home while the former spouse lives there under a divorce or separation instrument. And a transfer of a home between spouses as part of a divorce is generally treated as no gain or loss. Your CPA can apply those rules to your dates.

Then the question becomes a buyout. The spouse keeping the home usually pays the other for their share and refinances the mortgage into their own name. A buyout needs a price both owners accept and a loan the keeping spouse qualifies for alone.

Maggie is a mortgage broker, so she can shop buyout refinance options across a network of approved lenders and show whether the numbers work before anyone commits. You are free to use any lender you choose.

Use the same approach as the price: shared facts, in writing. A pre-listing inspection sent to both owners shows what buyers are likely to ask about.

Then agree on which repairs to make and how the cost is split, usually from the sale proceeds at closing. A short written agreement, reviewed by your attorneys, keeps a repair bill from turning into a new argument.

Start with a price both owners can see. Our page on divorce home sales in Sacramento covers the steps, and divorce home sales across the region explains how we work with both owners. You can request a report on what your home is worth to begin.

This is general information, not legal or tax advice. Contact us or call or text Maggie at (916) 549-3131 or email hello@loveyoursurroundings.co, and we will keep both of you informed from the first conversation to the last signature.