Selling a Home During Divorce in San Diego

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John Collins is twenty year resident of the San Diego coastal community, and a successful residential real estate agent and Realtor® since 2013. He specializes in the sale and purchase of San Diego real estate including luxury homes, condos, townhomes, investment properties, and first time buyers. John Collins is licensed with the State of California, CalRE# 01948818 and holds professional designations in real estate negotiation, real estate luxury home marketing, and handling distressed properties.

John Collins runs Collins Coastal, and is affiliated with Coldwell Banker realty. He is a highly rated San Diego Real Estate Agent. See His Google Business Profile And Reviews Here.

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YouTube Video Transcript:

Hey everybody, John Collins, real estate agent in San Diego. Joined today by Rosario Burgos Santoyo and Gretel Smith of Burgos Santoyo & Smith. They are family lawyers, and we are going to be talking about real estate and divorce today, which is of course a very sad situation, but one in which it makes a lot of sense that they kind of go together.

Thanks so much, guys, for joining me today. I appreciate it.

Gretel Smith: Thank you for inviting us.

Rosario Burgos Santoyo: Oh, thank you for having us.

John Collins: I'm excited to talk to you today because I know you're going to bring a lot of great information for people who may be dealing with a stressful situation and wondering how this all goes together. Obviously, a home is usually a family-based asset, and if you buy it with somebody you are no longer going to share it with, that is going to raise a lot of questions.

Rosario Burgos Santoyo: Yes. So, as you mentioned, it is usually the biggest asset, and it is also the one that people are emotionally tied to, aside from children, of course. A lot of people want that stability of not having to move and start over in a new home. So, it is often very contentious, which creates a more colorful environment for you as the person who is assisting them with selling a home.

John Collins: Very much. And as a Certified Divorce Specialist real estate agent, I have been through training and down that road where I have had to deal with that and learn about that. And kids in particular, as a parent, it really is a touchstone for the kids. When you are having to perhaps show a house that is their safe space, in that situation, it can be tough.

So in preparing for this interview, I went ahead and looked up what people are searching for when it comes to divorce and real estate. Because we all know, whether you are searching for a house or learning to do anything, you go to Google first and you start putting together your next steps.

These are the questions that people ask most on Google, and we are going to get it from the experts on what you should be doing.

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Question 1: Can the house be sold before the divorce is finalized?

Rosario Burgos Santoyo: The answer is sometimes. If there is an agreement between both parties to sell the house, then yes, you can sell the house prior to the divorce being finalized. A lot of times that is a good idea because the proceeds of the house can help fund the divorce if there is anything litigious going on aside from the sale of the property.

However, if there is not an agreement, then you would probably have to wait for a court to decide what to do with the home and wait for that court order. But even then, the divorce does not necessarily have to be finalized prior to selling the home.

John Collins: That makes a lot of sense. And of course, divorce can be expensive, and having those proceeds could help parties who may be struggling otherwise.

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Question 2: Is it better to sell before or after the divorce?

Gretel Smith: I am going to give you the attorney answer, which is, it depends.

It depends a lot on the situation. If both parties need the money to either fund the divorce or one party needs money to move out and move on with their life, then maybe selling it during the divorce or before the divorce is finalized might work for them.

One of the reasons why you may want to wait until after the divorce would be if you have children in school. You might not want to disrupt their school schedule, so you wait until the divorce is finalized, and then you and your former spouse decide to list the house after the school year ends. It is less of a traumatic transition for your children.

John Collins: That makes a lot of sense. Our worlds are alike in that every scenario is a little different. The personalities are different, and the needs of that particular family may be very specific.

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Question 3: What if one spouse does not want to sell?

Rosario Burgos Santoyo: There are a lot of tools you can use to try to force that person's hand if they are in disagreement. For example, in the court order to sell the home, you can be specific as to the sale price, the acceptable price range, say within 3 percent of the asking price, the times the home will be available to show, and where the for-sale sign will be.

If somebody refuses to follow the court order, we have had cases where contempt might be in order. You can file a contempt against this person. You can even file for an elisor, which is when you have a third party actually sign the sales contract for that person.

John Collins: That makes sense. And it takes us back to the timing question. If people are not in agreement, the process takes longer because you have to get the court involved to mandate actions that otherwise could happen more quickly with cooperation.

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Question 4: Can you keep the home without selling?

Gretel Smith: You can, but I usually do not recommend it because when you are getting divorced, you want a clean break.

One partner can buy the other partner out. Sometimes a party will refinance the home. We get the house appraised, and then one side buys out the other.

Other times, families do not want to sell because the market timing is not right, or the kids are about to graduate high school in two years and they do not want to disrupt that routine. In that case, they can agree to keep the house jointly for a period, with one parent living there, and sell it later. But there must be a set end date in the court order. If you keep the house indefinitely in both names, litigation will almost certainly happen down the line.

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Question 5: What if the house does not sell?

Rosario Burgos Santoyo: That is where you really lean on your professionals, including a realtor. Make sure the house is priced right and marketed well. If it still does not sell, look to see if someone is sabotaging the sale.

I have seen cases where someone hides the for-sale sign or refuses to allow showings. Make sure everyone is following the court order and all reasonable steps have been taken to sell.

John Collins: And if someone is inflating the price on purpose to block the sale, that can go back to the judge?

Gretel Smith: Yes, we can file for contempt. A judge can step in and future orders can specify that the listing price is set by the realtor rather than the parties, preventing sabotage.

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Final Question: When should someone talk to a lawyer or real estate agent if they are considering divorce?

Gretel Smith: They should talk to a lawyer as soon as they start contemplating divorce. That way, we can put together a plan. It does not have to be a litigious plan, just a clear strategy for assets and timing.

John Collins: And from the real estate side, I usually work with both owners together. If one spouse comes to me alone, I always send them back to the attorneys to ensure all parties are aligned before listing.

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John Collins: Thank you so much for joining me today. Hopefully this video gave people a lot of good information to start with.

Rosario Burgos Santoyo: Thank you for having us.

Gretel Smith: Thank you.

If you want to reach out to Burgos Santoyo & Smith, call 833-931-1615 or visit bsslegal.com.

And if you have any questions about selling a home in San Diego during divorce, my contact info is in the description.