Family Law

Dangers of Purchasing a Home from a Divorcing Couple

By guest-writer

Divorcing couples are often considered to be some of the most motivated sellers when it comes to real estate. But a recent article in the Chicago Tribune warns of the dangers of purchasing from a divorcing couple.

It is important at the outset to point out that the information that the Tribune is reporting on is for a couple that is in the process of a divorce, which can take years. After the divorce is final, then presumably the decision on the house will be more stable.

For the article, the Tribune interviewed Scott Weeda, a Seattle-based real estate agent who focuses on divorce. Weeda was quoted saying that, ?Most of my divorcing clients dislike each other very much, so navigating the transaction can be tricky,? and although, ?in many cases, the joint ownership is the only remaining tie? [that] they sometimes want to cut ASAP? in some cases one spouse may delay the signing to irritate their ex.

Divorce can often bring out the worst in people. When the two spouses are so wrapped up in getting under the other?s skin, the buyer might be the one with the headache.

It might not even be that the couple is intentionally trying to hurt each other.

The couple has broken up, which can be an indicator that they are on different wave lengths for a lot of things – including what to do with their former dwelling.

Sometimes one spouse wants to sell the house to get their assets more liquid and finalize the ties, while the other might want to hold onto the house for a few years for a better market.

As a buyer, there are ways to protect against this. It is possible to add in protective language in your offer. But a more common sense method is to just talk to the couple. Try to figure out, as best you can, just what the intentions are of the two.

Carol Ann Wilson, an expert on divorce and financial planning advocates looking into the background of the couple before proceeding with a divorce. Her best piece of advice is to look at the potential agreement and, ?if the buyers find that both parties haven?t signed off on the selling agreement? buyers should back off. The deal could be easily derailed.?

Dealing with a divorcing couple is a risk. But if you can find the couple that is synced up about liquidating their assets and moving past any ties, you could stand to get a good deal.

Just make sure that the money you save on the purchase price is worth the potential frustration and heartbreak if one spouse decides to veto the sale of your dream house.

Full post as published by The Divorce Blog on January 21, 2011 (boomark / email).