Real Estate & Divorce Blog: Divorcing in a Hot Real Estate Market: Sell Now or Wait?

What Defines a Hot Real Estate Market?

A “hot” market is generally characterized by:

• Low inventory of homes for sale

• High buyer demand

• Rapid price increases

• Short time on the market

• Multiple offers on listings

While this may seem like the perfect scenario to sell a home, there are additional considerations when that property is jointly owned by a divorcing couple.

Selling Now: Is It the Right Time?

In many cases, selling during a hot market can result in a higher sale price and a quicker closing. This may provide both parties with a financial boost and a clean break.

Advantages of Selling Now:

• Maximize Equity: You may be able to sell the home for top dollar, increasing the funds available for division.

• Faster Process: Homes in hot markets often sell quickly, which may help expedite the divorce timeline.

• Simplified Asset Division: Selling the home can eliminate arguments over who keeps it or what it’s worth.

Considerations Before Selling:

• Emotional Attachment: Selling the family home can be difficult, especially when children are involved.

• Short-Term Stress: Preparing the home for sale and moving can be overwhelming during a divorce.

• Tax Implications: Capital gains taxes may apply, particularly if the home has significantly appreciated and hasn’t been a primary residence for both parties in the last two years.

Holding the Property: A Strategic Pause

In some situations, holding onto the home temporarily—or long term—may make more sense, depending on financial circumstances or family needs.

Advantages of Holding:

• More Time to Plan: Waiting can give both parties time to finalize financial plans or stabilize post-divorce housing.

• Potential for Rental Income: If one party vacates, the home could generate income as a rental.

• Continued Appreciation: The property may continue to gain value, though this is not guaranteed.

Considerations Before Holding:

• Ongoing Financial Ties: Maintaining joint ownership after divorce can lead to complications if clear agreements aren’t in place.

• Risk of Market Shift: Hot markets don’t last forever. Delaying a sale could mean missing the peak.

• Legal Complexity: Co-owning property post-divorce requires strong legal documentation to avoid future disputes.

Consult with Professionals

When real estate and divorce intersect, it is critical to have the right team in place. This may include:

• A divorce-focused real estate agent

• A family law attorney

• A financial advisor with experience in property division

These professionals can help you assess your options and guide you toward a decision that aligns with both your immediate needs and long-term goals.

Final Thoughts

Selling a home during a divorce is never a simple decision, and a hot market can amplify both the opportunity and the pressure. Whether you choose to sell now or wait, make sure your decision is guided by careful planning, realistic expectations, and sound professional advice.

If you’re unsure which route is best, consider scheduling a consultation with a real estate professional who specializes in divorce situations. Making the right move—at the right time—can help you start the next chapter of your life with greater confidence and clarity.