Working with a divorcing couple: seven things every agent should know

From The Cusp’s agent training. Information only, not legal advice.

A divorce sale has rules that an ordinary sale does not, and almost nobody teaches them. These are the seven points the training spends the most time on.

1. Check for an automatic order before you list. In many states an order binds both spouses from the moment a petition is filed, barring sales, transfers and borrowing without written consent or a court order. Confirm in writing, from the client or their attorney, whether any order restricts a sale. A phone call is not enough. See the states.
2. Know who can sign. A decree divides property but does not by itself let one spouse sell. Until title is transferred or a court authorizes a sale, you generally need both owners. Ask for the deed, not the decree.
3. Say whether it is an opinion of value or an appraisal. Your opinion is a professional view that the other side can challenge. An appraisal is an independent document from a licensed appraiser. Say which one you are giving, in writing, every time.
4. Treat both spouses as clients. Put everything in writing with both copied: showing feedback, price conversations, offers, timelines. Never carry a message from one to the other. If one calls you, follow up with an email to both.
5. Raise the closing date; do not answer it. Whether the sale closes before or after the divorce is final can change the capital gains outcome. Say the timing may have tax consequences, suggest they ask a CPA before agreeing a date, and stop there.
6. Ask about safety, once and quietly. Some houses have a protective order attached, and a lockbox on a house where someone is excluded is a way in. Ask whether any order covers the property or contact, put showing arrangements in writing, and never disclose a client’s new address.
7. Stay out of the case. Never offer a view on how equity should be split. Never take a side, even when one spouse is behaving badly. Never speculate about custody, fault or what a judge will do. Your job is to sell the house well and be the calmest person in the transaction.

If you are an agent

The training is free, takes about forty-five minutes, and ends in a free assessment. Start the training, or read how certification and the referral panel work.

Spot something out of date? See our corrections or email hello@thecusp.app.

Sources

• The Cusp agent training, modules 1 to 7