Complete Guide: Selling Your Long Island House During Divorce

The process depends on whether both spouses agree: If Both Agree:

1. Create written agreement on terms (price, agent, timing)
2. Both spouses sign listing documents
3. Home is listed and marketed
4. Both review and approve offers
5. Both sign purchase contract and closing documents
6. Proceeds divided per divorce settlement or court order

If Spouses Don't Agree:

1. One spouse files motion with Nassau or Suffolk County court
2. Judge holds hearing to determine if sale should be ordered
3. If ordered, court appoints referee to oversee sale
4. Referee handles listing, accepting offers, and closing
5. Proceeds distributed per court order

In New York, if both names are on the deed, both signatures are required at closing—or a court order authorizing one spouse to sign for both.

Timeline: Agreed sales take 60-120 days. Court-ordered sales take 6-12 months from filing motion to closing.

In New York divorce proceedings, certain assets are considered separate (non-marital) property and are not divided: Separate Property (Not Divided):

• Property owned by one spouse before marriage
• Inheritances received by one spouse (even during marriage)
• Gifts given specifically to one spouse from a third party
• Personal injury compensation for pain and suffering
• Property designated as separate in a valid prenuptial agreement

Important for Your Home: If you or your spouse owned the Long Island house before marriage, it may be separate property—UNLESS:

• Marital funds were used for mortgage payments or improvements (creating 'commingling')
• The other spouse's name was added to the deed during marriage
• Significant appreciation occurred during marriage due to joint efforts

Example: If you bought your Nassau County home in 2010 for $300,000 (before marriage), and it's now worth $500,000, the $200,000 appreciation may be considered marital property subject to division if marital funds maintained or improved it. Bottom line: Consult your divorce attorney to determine what portion of your home equity is marital vs. separate property.

The answer depends on your specific financial and family situation. Here's how to decide: Consider Selling If:

• ✅ Neither spouse can afford the mortgage, taxes, and maintenance alone
• ✅ You want a clean financial break and emotional closure
• ✅ The home has significant equity that both parties need for fresh starts
• ✅ Neither spouse wants to remain in the marital home
• ✅ The home requires major repairs neither can afford
• ✅ You want to capitalize on tax benefits (up to $500K capital gains exclusion for married couples)

Consider Keeping If:

• ✅ One spouse can afford to buy out the other's equity share
• ✅ Minor children are settled in the home and school district
• ✅ One spouse can refinance to remove the other from the mortgage
• ✅ The home has little equity and selling costs would exceed proceeds
• ✅ Market conditions are poor and waiting would yield better price
• ✅ One spouse receives the home as part of overall property settlement

Financial Reality Check: For a typical Long Island home, carrying costs include:

• Mortgage: $2,000-4,000/month
• Property taxes: $800-1,500/month (Nassau/Suffolk County)
• Insurance: $150-300/month
• Maintenance: $200-500/month
• Total: $3,150-6,300/month

Can one spouse afford this alone while also paying for separate housing? If not, selling is usually the better option. Most Long Island couples choose to sell within the first year of divorce proceedings to simplify asset division and move forward.

If one spouse wants to sell your Long Island home but the other refuses, you have several legal options: Option 1: Negotiate a Buyout The spouse who wants to keep the home can:

• Purchase the other spouse's equity share
• Refinance the mortgage in their name only
• Compensate with other marital assets (retirement accounts, etc.)

Option 2: File a Motion with the Court Your divorce attorney can file a motion asking the Nassau or Suffolk County judge to order the sale. The court will consider:

• Whether either spouse can afford to maintain the home alone
• The best interests of any minor children
• Whether the refusing spouse has valid reasons
• Each party's financial circumstances

If the judge agrees the home should be sold, they will issue an order of sale. Option 3: Partition Action This is a separate legal proceeding specifically for forcing the sale of jointly-owned property. It can be filed:

• During divorce proceedings (in addition to your divorce case)
• After divorce is finalized (if the property issue wasn't resolved)

A partition action forces the sale and division of proceeds regardless of one spouse's objections. Timeline & Costs:

• Motion for court order: 1-3 months, $1,500-3,000 in attorney fees
• Partition action: 6-12 months, $3,000-8,000 in attorney fees

Best Approach: Work with your divorce attorney to first attempt negotiation. Court intervention is time-consuming and expensive. Many couples find that once they understand their legal options and financial realities, they reach agreement on selling.

Not necessarily. Both spouses must sign the closing documents, but this can be handled in several ways: Options for Closing Signatures:

1. Both attend together: Many title companies can accommodate this, though it may be uncomfortable.
2. Separate signing appointments: The title company schedules back-to-back appointments so spouses don't overlap.
3. Remote signing: Some closings allow one or both parties to sign documents remotely via overnight mail or notarized documents.
4. Power of attorney: One spouse can give the other limited power of attorney to sign closing documents on their behalf (requires attorney preparation).
5. Court order: If one spouse refuses to attend closing after agreeing to the sale, the other can seek a court order allowing them to sign for both.

What You Must Sign:

• Deed transfer (transferring property to buyer)
• Mortgage payoff authorization
• Closing statement (HUD-1 or closing disclosure)
• Any title company documents
• Proceeds distribution instructions

Coordination: Your divorce attorneys will work with the title company to ensure proper documentation and proceed distribution per your settlement agreement or court order.

Proceeds from selling your Long Island home during divorce are typically divided based on your divorce settlement agreement or court order: Common Division Scenarios: Scenario 1: Equal Split (50/50) Most common for long marriages where both contributed equally. After paying off the mortgage and closing costs, remaining proceeds are split evenly.

• Example: Sale Price $500k - Mortgage/Costs $300k = $200k Net. Each spouse gets $100k.

Scenario 2: Unequal Split Courts may award more to one spouse if:

• They contributed more to the down payment
• They paid a larger share of mortgage during marriage
• They made significant improvements using separate funds
• They're the custodial parent with greater housing needs
• Overall asset division justifies unequal home equity split

Example: 60/40 split gives one spouse $120,000, the other $80,000. Scenario 3: Offset by Other Assets One spouse may receive more home equity but less retirement, or vice versa. How It's Handled:

• Before divorce finalized: Proceeds held in escrow account until court approves distribution
• After divorce finalized: Title company wires proceeds per settlement agreement
• Tax implications: Both spouses typically report on tax return for year of sale

If you owe more than your home is worth (underwater mortgage) or equity is minimal, you have different options: Option 1: Short Sale You ask the lender to accept less than the mortgage balance. The lender must approve:

• Hardship documentation (divorce qualifies)
• Financial statements from both spouses
• Purchase offer from buyer

Challenges: Nassau and Suffolk County lenders typically take 3-6 months to approve short sales. Many deny them if either spouse can afford payments. Option 2: Deed in Lieu of Foreclosure You voluntarily transfer the property to the lender to avoid foreclosure. Both spouses must agree, and lender must accept. Option 3: Continue Co-Owning Some couples continue co-owning temporarily until market improves or until they build equity. This requires strict written agreements. Option 4: Cash Buyer for Underwater Property Some cash buyers purchase underwater properties and negotiate directly with your lender. We can make offers on homes with little to no equity and coordinate with your Nassau or Suffolk County lender. Key Point: If your home has no equity, don't spend thousands on attorney fees fighting over it. Focus on dividing other assets and moving on.

Yes, you can sell before your divorce is finalized, but there are important considerations: Advantages of Selling Before Finalization:

• ✅ Higher capital gains exclusion ($500K married vs $250K single)
• ✅ Simplifies asset division (cash easier to split than property)
• ✅ Allows both parties to move forward with housing plans
• ✅ Reduces ongoing conflict over property maintenance

Requirements:

• Both spouses must agree (or court must order sale)
• Your divorce attorneys must approve the timing
• Proceeds typically held in escrow until divorce finalizes
• Sale should not interfere with custody or child support determinations

Process:

1. Both attorneys draft agreement for proceeds distribution
2. Title company places proceeds in escrow account
3. Escrow agent releases funds once divorce is finalized per agreement
4. If no agreement, court orders distribution during property settlement

Tax Timing: Selling before December 31 of the year your divorce finalizes ensures you file married filing jointly and benefit from the $500,000 capital gains exclusion and potentially lower tax brackets. Bottom line: Selling before finalization is common in Nassau and Suffolk County divorces. Your attorneys will ensure proper timing and documentation.