Selling a House During Divorce in Utah – What You Need to Know
Divorce. When we start our journey in love, it’s hard to think about a marriage ending in divorce, yet it happens more often than we like to believe. According to the American Psychological Association, about 40 to 50% of first marriages in the United States end in divorce. So, what happens to things you both own, like houses or properties, when a couple separates? Is it true that you have to divide everything right down the middle?
Utah Divorce and Real Estate Terms You Should Know
To help you better navigate the divorce process, here are a few terms commonly used in Utah divorce and property division cases:
Buyout Agreement: A legal agreement where one spouse pays the other for their share of the home’s equity.
Equitable Distribution: A fair, but not always equal, division of assets and debts.
Temporary Orders: Court orders issued early in a divorce to determine who lives in the home, who pays the bills, and who has custody of children.
Separate Property: Assets acquired before the marriage or received by inheritance or gift, which may not be divided unless commingled.
Marital Property: Most assets acquired during the marriage, subject to division under Utah law.
What is unique about divorce in Utah?
Utah divorce laws are unique in several ways. Utah does not follow community property laws like some other states, instead using an equitable distribution principle for marital assets. This means the court aims for a fair division of property, not necessarily a 50/50 split. Utah also allows for both no-fault and fault-based divorces, with the most common ground for divorce being irreconcilable differences.
Here’s a more detailed look at some unique aspects:
1. Equitable Distribution, not Community Property:
- Utah is not a community property state. Community property laws assume that all assets acquired during the marriage are equally owned by both spouses.
- In Utah, the court determines a fair division of marital property, taking into account factors like the length of the marriage, each spouse’s contributions, and their respective financial situations.
- This means that property may not be divided equally, and separate property brought into the marriage may be considered.
2. Both No-Fault and Fault-Based Divorce:
- Utah offers both no-fault divorces (based on irreconcilable differences) and fault-based divorces (where one spouse is deemed responsible for the end of the marriage).
- A no-fault divorce, often the preferred option, requires no proof of fault, only that the marriage has irreconcilable differences and has broken down.
- Fault-based divorces can be based on grounds like adultery, abandonment, or cruel treatment.
3. Temporary Separation:
- Spouses can choose to file for temporary separation before filing for divorce, which allows them to establish temporary orders regarding things like alimony, property division, and child support while they decide whether to proceed with a divorce.
Long Does Divorce Take in Utah?
In Utah, there’s a mandatory 30-day waiting period after filing for divorce before it can be finalized. However, more complex cases—especially those involving children or property like a house—can take several months to resolve. If you and your spouse agree on all terms (an uncontested divorce), the process is faster. But if you disagree on key issues like who keeps the house, the court may need to intervene, which can extend the timeline.
For homeowners, this waiting period can cause uncertainty—especially if neither spouse can afford to keep the home alone. That’s why some couples choose to sell their home during the divorce and split the proceeds, removing the stress of mortgage payments while the legal process unfolds.
Helpful Utah Divorce Resources
– Utah Courts Divorce Info: https://www.utcourts.gov/en/self-help/divorce.html
– Utah Legal Services: https://www.utahlegalservices.org
– Utah Divorce Statutes: https://le.utah.gov/xcode/Title30/Chapter3/30-3.html
Can You Divorce Without Selling the House?
When going through a divorce, you can choose to keep the house or sell it and share the money equally. The first thing to do is inform your lawyers and the Court about when you bought the house. This key detail can help figure out if the house should be sold and the profits divided fairly, or if it is seen as separate property and not part of the marital assets.
If the Court decides the property is a “separate property” – i.e. purchased before the marriage, gifted or inherited to you as an individual, or purchased with separate assets by you at any time – in both community and equitable distribution states, the spouse has no rights to this property. There may be some exceptions to this, such as in a case where the property was updated in a way that added to the overall value of the house. A lawyer will be able to help you decide whether a property is considered separate or a marital asset.
A court will look at several factors to decide who gets the house, including:
The value of the property.
The financial circumstances of each partner.
The employability of each partner.
Both physical and monetary contributions to the marital home.
The age and physical and mental health of each partner.
The amount of time each partner will have custody of the children.
Who Gets The House in A Divorce?
During a divorce, it’s State law that will govern the division of assets. These laws play a heavy role in how your marital assets are divided. Most states follow the law of equitable distribution. In these cases, during a divorce a judge will divide your property in a way that the Court considers fair. This doesn’t necessarily mean evenly or equally but can be based on a number of factors, including individual contributions to the household (such as child rearing).
There are nine states with community property laws. They are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska has community property laws as well, but only if you opt in to this method. In community property states, all assets obtained during the marriage (i.e. marital property) are divided 50/50 with only a few exceptions.
There are a few options both you and your partner and/or the Courts might choose when it comes to selling (or not selling) your marital home. These include:
One of the spouses buys out the other legal interest and keeps the home
If you and your partner have a home together and live in a community property state, it usually means that all shared items, including your house, are split evenly. But does that mean you must sell your home? Absolutely not! You have the option to create a deal in Court to buy out your partner’s part of the house. This lets you keep the home. Just make sure that you are the only one named on the title within the timeframe the Court sets after the divorce agreement is complete.
One spouse keeps use and occupancy of the home for a specified period; typically when the youngest child turns eighteen, then the house can be sold.
In several states, a parent who has custody of their children may stay in the house until the kids turn eighteen. What the Court decides can affect whether the parent living in the home has to pay the mortgage, bills, insurance, and other costs. They can stay in the house until all the children are adults. After that, the house will be sold, and the money will be shared between both parents.
Co-own the home
Going through a divorce doesn’t have to feel like a battle, both emotionally and financially. Sometimes, sharing ownership of a home can be the best choice for your family’s well-being, whether you live together or apart. If you have kids and want them to stay in the same house, both parents could remain on the mortgage to keep things as stable as possible. For instance, imagine a husband and wife with three kids. The husband works outside the home and is the family’s main income earner, while the wife takes care of the children. Because she focuses on being a homemaker, she might not have the money, work experience, or opportunity to buy out her husband’s share of the house.
There are some benefits of this situation, including stability for the family, but it would require trust by the departing spouse that their previous partner will be able to make their payments on time. Otherwise, both partners would take a ding on their credit record.
The house is sold immediately and any equity is split up
Sometimes, selling your home can be the easiest and clearest choice. You list the house for a price you both agree on, and when it sells, everyone divides the money, either equally or as the Court decides. Depending on how the housing market is doing in your area, this process can go quickly or take a long time. If the housing market is slow, your house needs repairs, or there are problems with the title, a traditional sale might not be the best option. In those situations, selling directly to a homebuyer or investor could be a quicker and simpler way to sell your home and move forward with your life.
Selling Your House During A Divorce?
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Steps to Sell a Home During Divorce
1. Hire A Divorce Lawyer
The first thing you need to figure out is how to divide your assets, which can be done with the help of lawyers or the Court. Going through a divorce can be very stressful and emotional for both people involved. AN attorney can help you determine if the home is marital property and how it fits into your settlement.
2. Agree On Home Sale Specifics
You and your partner need to choose the best way to sell your home. Do you want a quick sale to separate your assets and move forward with your lives, or would you rather take some extra time to renovate the house and make it look great so you can get the highest price possible in today’s market? If you can’t agree through your lawyers, the Court might have to step in to help.
If you decide to spend the money on any necessary repairs and upgrades, you’ll want to come to an agreement on how to split those expenses, as well as how that investment may impact the final split of the profits. Before you spend one more dime, make sure to finalize these agreements with a lawyer so that you’re not left high and dry at close.
But there’s more to think about than just costs and profits. How will you manage the house while it’s on the market? Which agent will you pick? What should the asking price be? Will the house be vacant, or will you or your spouse stay in it until it sells? Who will handle the mortgage payments and other bills, and if no one is living there, who will ensure the house is ready for showings and open houses? If you can, have your lawyers sort these things out before going to court. This can save you time and prevent the sale profits from being used up by legal fees.
3. Know What to Expect in Order to Close the Sale
Now, it’s time for you and your ex-partner to set aside feelings and work together to make some money by reviewing offers from potential buyers. If you only get one or two offers, the choice might be simple. However, in a hot housing market with many offers, you may find yourselves discussing things back and forth with your lawyers and real estate agent about which offer works best for both of you. To make this easier, it’s a good idea to agree on a plan before listing your house for sale. Whether you decide to accept the first offer without any conditions or choose the one that gives you both the highest profit at closing, you need to reach a decision together before the sale can happen.
4. Divide the Proceeds
It’s the final step, and hopefully the simplest! Whether the Courts or your lawyers helped you settle your divorce, you should already understand how the proceeds of the house sale will be divided. If there are any liens or obligations on the house, the escrow company will pay them off before distributing the money so that you can move on with your life.
OR
5. Sell Your House AS-IS to A Cash Buyer
Are you in a tough spot where you and your ex can’t talk? Are you eager to move on from your marriage and start a new chapter? Is the pressure from the divorce weighing you down, making a quick and easy sale of your joint home the best choice for everyone? Selling your home to Flip Nest could be just what you need!
6. Why Utah Couples Choose Flip Nest
Flip Nest buys homes for cash, regardless of their condition or the owner’s financial and marital issues. They focus on quick closings, allowing homeowners to sell their properties much faster than through a regular sale. They buy houses as-is, meaning that even if a home needs repairs or updates, they will still offer cash and close the deal quickly. For couples going through a tough and costly divorce, this could be the best solution for their family. They can sell the house for a fair cash price and complete the sale swiftly, avoiding the need to negotiate through lawyers and a shared realtor.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
Flip Nest is a local house buying company that’s built their business by buying houses for cash, no matter what the condition or the homeowners’ financial situation. We promise competitive cash offers without the hassle of dealing with real estate agents, lawyers, and more. If a direct home sale sounds like the best option for you, let’s chat! Call us day or night at (385) 406-3690. We have a reputation for buying houses with less stress and less fees.
If you own a property that you need to sell fast due to divorce, we have a solution. Contact us today and get a competitive cash offer for that house or rental property. We buy homes, no matter what your individual financial situation or the property’s condition. Even if the house has been neglected for years or suffered damage in the last storm, once you accept our fair cash offer our team of experts will handle all of those expensive repairs and upgrades so you don’t have to! We make selling a house during a divorce as hassle-free as possible.