When you bought a vacation home in Kissimmee, you probably imagined you’d enjoy years of fun in the sun with family and friends. You likely never dreamed that a divorce would put an end to those plans.
Divorcing couples have to make tough decisions that impact their financial future. This is especially true when having to sell a vacation home. Couples need to safeguard their investments, and divorce is one of the biggest threats they need to think about when buying and selling their Kissimmee vacation homes.
Important Decisions to Consider before Selling Your Home in a Divorce
Before you list your home on the market, decide what you’re willing to sell the home for and how you’ll cover the costs of repairs or maintenance. You’ll also need to decide who will remain in the home prior to the sale, and who will leave. It’s best for one spouse to remain in the house to prepare for viewing appointments.
Staging a home for buyers can require upfront costs in addition to cleaning services, landscapers, painters, and other expenses that can come up during the selling process. Determine each person’s willingness and ability to take on some of the tasks required to sell the home.
Tax Considerations when Selling a Vacation Home
You’ll need to pay a capital gains tax if you earn a profit on the sale of your vacation home. Homeowners who are U.S. citizens may pay up to 23.8 percent of their gains in taxes. Foreign sellers are subject to a 15 percent withholding rate at closing under the Foreign Investment in Real Property Tax Act (“FIRPTA”).
But some tax exemptions do exist, and waiting to sell your home after your divorce could cost you hundreds of thousands of dollars. Real estate and tax professionals can help you carry out your divorce in a way that takes advantage of exemptions and minimizes your tax liability.
Don’t Let Emotions Get in the Way of Your Home Investment
Selling a home during a divorce can be an emotional roller coaster. Spouses may disagree on the terms of the sale, leading to additional time, money, and other costs needed to finalize the divorce.
All couples benefit from a higher selling price. But emotions cause people to act in ways that impact the sale of their home. An unrelated disagreement can cause one person to abruptly stop the sale of the home. It’s important to work together to get the highest return on your real estate investment. Anything that gets in the way of the sale hurts both parties in a divorce.
Work With an Experienced and Neutral Real Estate Professional
Working with someone who specializes in selling a home during a divorce is the best option for you and your spouse. The divorce process presents a unique set of issues that couples need to be aware of when selling a vacation home.
The right real estate agent can mediate the process, helping couples overcome conflicts and maximize the return on the sale of their Kissimmee vacation homes. Spouses can communicate through the real estate agent, making the process easier and less emotional.
Knowing what to consider when selling your vacation home in a divorce gives you the highest return on your investment while securing your financial future. Team Donovan helps divorcing couples and other home investors buy and sell vacation homes in Kissimmee and the surrounding Central Florida area.
There are ways you can protect your home investment at each step of the buying and selling process to increase its lifetime value. To learn more, contact us and set up a free consultation at (407) 705-2616.
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