The breakdown of any marriage is a very stressful event for both the parties involved, no matter how amicable the split is! That said, once all the emotional aspects of the divorce have been overcome, it is time to get to the nitty-gritty of splitting up everything the couple owns.
Mobile homes Texas have been quite popular as they are not only affordable but they can also be moved from one place to another. Owning a mobile house can be fun if you love adventure but when it comes to divorce proceedings, things can get a little sticky.
Here we share a few ways you can successfully navigate your way through a divorce and sell your mobile home simultaneously, without any trouble.
Ownership of the Mobile Home Matters
A divorce can go either way. It can turn into an ugly fight or it can be handled amicably and in a civilized way. When it comes to the division of assets, the sooner it is done the better.
If the intention is to sell the mobile home, the key step is to establish the ownership of the mobile home. This, however, varies from state to state. In some states, the person who has solely bought the mobile home is the owner. In some states, a non-owning partner may benefit from the sale of the home if he/ she had been actively participating in the regular upkeep of the home.
Some states follow the community property laws according to which the assets, including the home/ mobile home, are legally considered to be jointly held by both the partners.
Timing is Everything!
As ugly and heart-breaking as a divorce can be, timing is of utmost importance when it comes to selling off your assets. The most important acquisition and investment in a married couple’s life is their house.
Although selling off a traditional house does not take a lot of time during a divorce, a mobile home is a different story altogether. It takes a longer time for a mobile home to be sold off which may end up costing you a lot.
There are three options that can be considered and they are outlined below.
- Selling the house, before the divorce is finalized is a smart move as it can help both parties financially by providing monetary benefits. If the couple has been living in the mobile house for a few months, then there is a possibility that both of them can be excluded from the capital gains taxes.The sale and subsequent splitting up of the proceeds can even help the separated couple to pay off their respective debts.
- Some couples opt to sell their mobile homes during the divorce. Selling the mobile home during the divorce is one of the best ways to minimize tax liability as a result of the sale as the couple may file jointly for taxes.Furthermore, selling the mobile home during the divorce also helps in paying the pile of bills that accumulate as a result of the divorce.
- In a different setting, a few couples opt to sell their mobile home after the divorce. Since in most of the cases, a mobile home is a joint investment, the person living in the home after the divorce usually buys out from the ex, making it a clean sale.
Capital Gains Taxes
Although the resale value of a mobile home is generally less, in some cases if the mobile homes texas have been well-kept and maintained, chances are that the resale value may be higher.
This raises the question of tax liability on the gains that are accumulated between the original value and the resale value. Exclusions of up to $500,000 may be offered to the couple who file for taxes jointly and before the divorce is finalized. However, if they choose to do it after the divorce has been finalized, exclusions of up to $250,000 may be offered individually to the ex-partners, depending on their qualifications.
Repair Work is a Must!
As mentioned earlier on, timing is of utmost importance if you want to sell your mobile home hassle-free during a divorce. Getting prepared for it is half the battle! If the intention is to sell the mobile home, once the ownership has been mutually decided, then it is imperative that it is presented to the potential buyers in the best of a condition.
All repair work should be taken care of properly and if there are a couple of things that the individual or couple does not intend to fix, then it is their responsibility to inform the potential buyers. The more the repair work is delayed, the expensive it will get!
Selling a Mobile Home During a Divorce Doesn’t Have to Be Messy!