When a couple decides to separate and the house is going to be sold, practical doubt arises: is it appropriate sell the house in divorce, before signing it or after? The answer affects taxes, to the mortgage and, above all, at the price you will end up getting. Let's go in parts.
Sell before divorce: the way that usually wins
Selling by mutual agreement while the marriage is still in effect has clear advantages: you both sign as sellers, The mortgage is canceled in the same notary office and each person takes their share without intermediate steps.. Besides, The regulatory agreement arrives later with the problem already resolved: you just have to distribute money, do not negotiate on a property.
The tax advantage also exists: If the house was your habitual residence, everyone can apply the rollover exemption in personal income tax if you buy a new habitual residence in the following two years, and the older ones 65 years are exempt without conditions. The more time passes between leaving the house and selling it, the greater the risk of losing the status of habitual residence (the law gives margin, but not infinite; Whoever left the home due to divorce retains the benefit if the other spouse continued to live there with the children).
Sell after divorce: when does it make sense
Sometimes there is no other: there is no agreement yet, or the use is attributed to the children and the sale is postponed. It is perfectly viable, but with three warnings: You will continue sharing expenses and mortgage in the meantime; The house inhabited by only one of the parties usually arrives on the market worse presented; and the sale will again require the signature of both, with the relationship as it is at that moment. If the plan is to sell “later”, put a date in the agreement: los “we'll see” turn into years.
And sell my half to the other?
This operation is not a normal sale.: is a condominium extinction, and done correctly it pays much less tax. We dedicate a separate complete guide to you; the key here is only one: the value of half must come from a objective assessment, not an emotional negotiation. Overpay (charge less) for half of your own house is the most common financial mistake in divorces.
The smart calendar
1) Real valuation of the home, together and with the same data. 2) Decision: sale, extinction or waiting agreed upon date. 3) If it is sale: preparation and launch to the market with a defensible price, without transmitting urgency (buyers smell it and use it). 4) Signature and distribution. The entire process can be resolved in a few months if the step 1 it is done well.
At Mayrasa we support separation sales every month: impartial assessment for both parties, identical information for both and complete sales management with complete discretion. If you are at this point, start by knowing how much the house is worth: It's free and clarifies everything else.
Before, after or extinction: compared
To see it at a glance, This is how each path looks according to what usually matters most:
| Aspect | Sell before | Sell later | Condominium extinction |
|---|---|---|---|
| Who signs | Both, still married | Both, already divorced | One buys; the other sells his half |
| Taxation | Rollover Exemption Easier to Maintain | Risk of losing your habitual residence over time | AJD (around the 1,5%) for whoever keeps it |
| Mortgage | Canceled on sale | Canceled on sale, but you pay in between | Requires novation or release of co-debtor |
| Price | Better presented house and without urgency | Often poorly presented and rushed | Depends on the agreed pricing |
The fiscal clock: don't lose the rollover exemption
The biggest tax advantage of selling what was your primary home is the reinvestment exemption, but it has time rules that should be respected:
- Two years to reinvest: if you buy another habitual residence in the two years before or after the sale, the reinvested profit is exempt from personal income tax.
- Who left because of the divorce maintains the status of habitual residence if the other spouse and children continued to live in the house, although he no longer resides there.
- Older than 65 years: The sale of your habitual residence is exempt without the need to reinvest.
- The longer it gets the sale after separation, It is more difficult to maintain that it is still a habitual residence; that's where the calendar costs money.
These are general personal income tax criteria.; The detail depends on your case., so confirm it with an agency before signing.
Calendar errors that cost money
- Leave home and let years pass before selling, losing the reinvestment exemption along the way.
- Accept a “we will sell” no date written in the agreement.
- Sell in a hurry right after the divorce and accept the first low offer.
- Set the value of half “by eye” in the extinction of condominium, without impartial appraisal.
- Do not notify the bank and continue responding 100% of a mortgage paid by the other.
Frequently asked questions
Is it better to sell before or after divorce?
In most cases, before: you both sign as a marriage, The mortgage is paid off in the sale itself and it is easier to maintain the rollover exemption. Selling later makes sense when there is still no agreement or the use is attributed to the children.
How long do I have to reinvest and not pay personal income tax??
Two years to buy a new habitual residence, before or after the sale. Only the part of the profit that you reinvest is exempt; if you reinvest a part, the rest pays taxes.
Do I lose the exemption if I left the house before selling it??
Not necessarily. If you left the house due to the separation and your ex and the children continued to live there, The Treasury admits that for you it continues to be considered a habitual residence for the purposes of the exemption..
Can we agree in the agreement that it be sold within a period?
Yeah, and it is highly recommended. Set a date or milestone (For example, the coming of age of children) prevents the sale from remaining in a “we'll see” that lasts for years and reopens the conflict. With that clear date, prepare and execute the sale it's simple.
An example of why timing matters
Imagine a couple with an apartment in Torrevieja that was their habitual residence. If they sell by mutual agreement before signing the divorce and each reinvests their part in a new habitual residence, The profit may be exempt from personal income tax and the mortgage is canceled at the same notary office.: closed issue. And, instead, one leaves, the sale is postponed “for later” and three or four years pass with the house half inhabited and without an agreement, they may find that it no longer counts as habitual residence, that the profit is taxed in full and that during all that time they have continued paying and arguing for the same property. It's the same floor and the same people: just change the calendar, and with him, thousands of euros.
