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Selling during a divorce

How do we do this fairly, and who decides what?

Step 5 of 6

How do the proceeds get split at closing?

The answer

The closing attorney pays off the mortgage, the commission and the closing costs, and disburses what's left according to the settlement agreement, often directly to each of you. Get a written accounting before closing day, and ask a tax advisor about capital gains; the exclusion rules for a home you both lived in usually still help.

It's a normal closing with one extra document: the instruction that tells the attorney how to split the money.

How long
Most people spend about a month here.

In Georgia

In Georgia the closing attorney disburses proceeds and can split them between the parties at closing when the settlement agreement provides the instructions.

What to do0 of 5 done
  • How to: Split instructions delivered

    Give the attorney the agreement's split instructions early

  • How to: Settlement statement reviewed

    Review the settlement statement together before closing

  • How to: Payouts confirmed

    Confirm each person's payout and how it will be sent

  • How to: Tax question asked

    Ask a tax advisor about capital gains on your share

  • How to: Final accounting kept

    Keep a copy of the final accounting

Go deeper
What people wish they'd known
  • Assuming a 50/50 split. The agreement controls, and it may not be even.
  • No written accounting. It invites disputes later.
  • Forgetting taxes. A large gain can be partly taxable even after the exclusion.

From the Thrive team

  • Ask the attorney to disburse each share directly. It avoids one person holding the other's money.
The next thing people ask

What comes next for me?

Go to step 6

Questions you'll probably have

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Elliott or Ashley will answer, usually within one business day. No pressure, no pitch.

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