Divorce is hard. But when there’s a house involved? It’s not just emotional—it’s financial, legal, and logistical. We are here to make it a little less worse.
Whether you’re trying to protect your equity, avoid a messy court battle, or simply move forward with peace of mind, here’s 3 options for you to make asset division easier:
🏠 Option 1: Sell the House and Split the Proceeds
This is the cleanest break. You list the home, pay off the mortgage and closing costs, and divide what’s left.
It’s straightforward, and it gives both parties a fresh start. This route is especially common when neither spouse can afford the home solo or when emotions are running high.hellodivorce.com+3SoldNest+3Divorce Mortgage Advisors+3
According to NerdWallet, this is often the most straightforward option:NerdWallet: Finance smarter
💰 Option 2: One Spouse Buys Out the Other
If one of you wants to stay in the home—maybe for the kids, maybe for stability—you can negotiate a buyout.
That means getting an appraisal, subtracting the mortgage balance, and paying the other spouse their share of the equity. This usually involves refinancing the mortgage under one name.
Bankrate notes that the equity is divided after debts and costs are paid:Bankrate
“The equity is divided between the two parties after any existing debts and costs to sell the home, like closing costs, are paid.” Bankrate
⏳ Option 3: Co-Own Temporarily
In some cases, couples agree to keep the home jointly—at least for a while. Maybe until the kids graduate. Maybe until the market improves.
One spouse typically stays in the home and covers the mortgage, while both remain on the title and loan. This can work, but it’s risky. Any missed payments affect both credit scores. And you’re still financially tied together.InvestopediaSoldNest
As highlighted by Hello Divorce:LinkedIn+2resources.hellodivorce.com+2hellodivorce.com+2
“Equal split: If both spouses are entitled to an equal share (e.g., a 50/50 split), each would receive half of the home equity.” hellodivorce.com
📊 How to Calculate Equity
It’s simple math:
- Get a professional appraisal. Make sure to also factor in all marital property. If you are wondering about marital Property, our friends at Divorce.com by clicking here
- Subtract the remaining mortgage balance.
- The result is your equity.
For example, if your home is worth $500,000 and you owe $300,000, your equity is $200,000. If you’re splitting it 50/50, each spouse gets $100,000.
Bankrate emphasizes the importance of considering costs and taxes:
“The equity is divided between the two parties after any existing debts and costs to sell the home, like closing costs, are paid.” Bankrate
⚠️ Don’t Forget the Tax Angle
Selling while still legally married could save you thousands. Married couples can exclude up to $500,000 in capital gains tax on a home sale. Once divorced, that drops to $250,000 per person.
🧩 Final Thought: You Have Options
Your home is more than just a building—it’s memories, milestones, and meaning. But it’s also an asset. And in divorce, it needs to be treated as both.
Whether you sell, buy out, or co-own temporarily, the key is to make a decision that supports your financial future and emotional well-being.
Need help exploring your options? We can help you with asset division by selling your house quickly and letting one of the parties stay as a renter in a familiar environment. Check more about our Sell and stay program here
Summary: Splitting a home in divorce? You can sell and split proceeds, negotiate a buyout, or co-own short-term. Each path has pros and cons—know your equity, tax impacts, and legal risks before deciding.
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