Divorce is one of life’s most emotionally and financially challenging experiences. For many couples, deciding what to do with the family home becomes one of the most critical aspects of the separation process. Selling a home during divorce can feel overwhelming, but understanding your legal options can ease the burden and help you make an informed decision that benefits everyone involved.
Whether you’re considering a buyout, co-ownership, or a fast cash sale, this guide explores the key routes available to divorcing couples—and the pros and cons of each. With careful planning and the right support, you can move forward with confidence.
One Spouse Buys Out the Other’s Legal Interest
If one spouse wants to keep the home, a buyout agreement can be arranged. This means the buying spouse pays the other for their share of the equity in the home. In community property states, assets are generally split 50/50, so the buyout must reflect this.
To move forward with a buyout, the purchasing spouse must:
- Secure financing or use other marital assets.
- Refinance the mortgage to remove the other spouse’s name.
- Obtain full legal ownership through a new deed.
This approach works best when one partner wants to stay in the home and can afford to carry the mortgage alone.
One Spouse Gets Exclusive Use and Occupancy
Courts may allow one spouse to live in the family home for a period of time, especially if children are involved. Typically, the custodial parent is granted exclusive use and occupancy until the youngest child turns 18.
Key factors considered by the court include:
- The well-being and stability of children.
- Each party’s ability to pay housing-related expenses.
- Existing mortgage or rental agreements.
During this period, the occupying spouse is usually responsible for utilities, insurance, and maintenance, unless otherwise stated in the divorce agreement.
Co-Owning the Home After Divorce
Some couples choose to continue co-owning the home after the divorce. This arrangement might work if:
- One spouse can’t afford to buy out the other.
- Both parents want their children to stay in the home.
- The real estate market isn’t favorable for a sale.
This solution demands a high level of trust. Missed mortgage payments by either party can affect both spouses’ credit scores. A legally binding co-ownership agreement is highly recommended to avoid future disputes.
Selling the House and Splitting the Equity
Often the cleanest approach is to sell the house and split the proceeds. If both parties agree, the home can be listed, sold, and the profits divided according to the divorce settlement.
Advantages of this method include:
- Simplicity and finality.
- No future legal or financial entanglements.
- A fresh start for both parties.
However, market conditions, home repairs, and legal title claims can delay the process. In such cases, a direct sale to an investor or cash buyer might be faster.
Selling the Home to a Cash Buyer
For couples looking to resolve the matter quickly and with minimal conflict, selling to a cash buyer is a viable option. This route offers:
- Fast closing (as little as 7–14 days).
- No need for repairs or inspections.
- No realtor commissions or complicated paperwork.
It’s particularly helpful when:
- Communication has broken down.
- The home is in poor condition.
- There is urgency due to legal or financial issues.
Cash buyers purchase homes as-is, making it easier to finalize the divorce and move on.
Steps to Sell a Home During Divorce
1. Hire a Divorce-Specialist Real Estate Agent
Start by finding a real estate agent who has experience with divorce cases. They understand the legal sensitivities and emotional challenges involved and can provide objective guidance during negotiations.
2. Agree on Home Sale Details
Before listing the home, decide:
- Whether to sell as-is or make improvements.
- Who will live in the house during the listing.
- Which agent to hire and what price to set.
- How to split costs of repairs or staging.
Document all decisions in writing with your legal team.
3. Evaluate and Accept Offers
Once offers start rolling in, both parties should agree on how to evaluate them. Determine:
- Whether you’ll take the first solid offer.
- If you’ll wait for the highest bid.
- How to respond to contingencies and counter-offers.
Clear communication can prevent costly delays.
4. Divide the Proceeds
After closing, the escrow company will:
- Pay off the mortgage balance and any liens.
- Deduct taxes, agent fees, or unpaid debts.
- Distribute the net proceeds as agreed in the divorce decree.
Make sure your final divorce documents specify how proceeds should be split to avoid post-sale disputes.
Should You Sell Your House During Divorce?
Ultimately, the right choice depends on:
- Your emotional attachment to the home.
- Your ability to afford the property alone.
- The stability of your children.
- The real estate market in your area.
Discuss your options with legal and financial professionals to create a strategy that works best for your circumstances.
Conclusion
Selling a home during divorce doesn’t have to be a drawn-out battle. Whether you choose to co-own temporarily, pursue a buyout, or sell quickly to a cash buyer, each path offers unique benefits. With clarity, cooperation, and professional guidance, you can navigate the process smoothly and start fresh.
If you’re considering selling your home as part of your divorce settlement, contact us today for a no-obligation cash offer. Let us help you simplify this major life transition.
FAQs
1. Can I sell my house before the divorce is finalized?
Yes, but both spouses must agree and sign off on the sale unless the court orders otherwise.
2. What happens if we can’t agree on selling the house?
The court may intervene and order a sale or assign ownership as part of the final divorce judgment.
3. Do I have to pay capital gains tax when selling after divorce?
You may qualify for an exclusion if you lived in the house for at least two years. Consult a tax advisor for specific details.
4. Can we sell the house without a realtor?
Yes, especially if selling to a cash buyer, but hiring a real estate professional can help you get a better deal.
5. What if the house has a lien or unpaid mortgage?
The lien or mortgage will be paid off from the sale proceeds before either party receives their share.
Going through a divorce can be tough, especially when it comes to figuring out what to do with your home. Many couples wonder if they can split up without having to sell their house. The answer is yes, but there are a few things to think about first.
One option is to let one partner keep the house, which means that person will take over the mortgage and any related bills. This might work if the person staying in the house can afford it. However, the other partner might need to be paid their share of the home’s value, which can be decided in the divorce settlement.
Another choice is to co-own the house until you can sell it later. This can help you avoid selling at a bad time, but it also means both parties need to agree to keep taking care of the home together until then. It’s important to set clear rules about how the property will be maintained and what will happen when it’s time to sell.
In some cases, couples may decide to rent out the home instead. This could bring in some money while both partners figure out their next steps. It’s a smart way to keep the property valuable until a final decision is made.
Before making any decisions, it’s a good idea to talk to a lawyer or a financial expert. They can help you understand your options and what’s best for your situation, making the process a little easier during a challenging time.
When going through a divorce, you have choices about what to do with your home. You can decide to keep it or sell it and share the money made from the sale. The first thing to do is tell your lawyers and the court when you bought the house. This detail is key because it helps figure out if the house needs to be sold and the money split fairly, or if it should be left out of the marital property division.
If a court rules that a property is “separate property,” it means that it was bought before you got married, received as a gift, inherited, or even paid for entirely with your own funds. In community and equitable distribution states, your spouse generally cannot claim this property. However, there can be exceptions. For instance, if you made upgrades that increased the property’s worth, that might change the situation. Consulting with a lawyer can clarify whether a property is separate or part of marital assets.
When judges make a decision about who gets to keep the house, they look at several key factors, including:
How much the property is worth.
The money situation of each partner.
How likely each partner is to find a job.
Both tangible and financial investments made into the family home.
How old each partner is and their physical and mental well-being.
How long each parent will take care of the kids.
Who Gets The House in A Divorce?
During a divorce, the laws in your State determine how your assets are divided. These regulations play a big role in how any property you both own is shared. In a lot of states, the concept of equitable distribution is applied. This means that a judge will divide your belongings in a way they consider fair. However, this doesn’t always mean splitting everything 50/50; it can also factor in various elements, like each person’s contributions to the home, including child care responsibilities.
There are nine states with community property laws that influence how assets are shared between partners. These states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska is a bit different because it allows for community property rules, but couples must choose to follow them. In these states, any property gained during the marriage, known as marital property, is split equally, so each partner receives half, although there are some exceptions to this rule.
You and your partner, along with the Courts, have several choices when it comes to your marital home. Here are some options you might consider:
One of the spouses buys out the other legal interest and keeps the home
If you and your spouse own a home and live in a community property state, any assets you have will be divided equally between you. But does this mean you have to sell your house? Not really! You can work things out in Court to buy out your spouse’s share of the home, allowing you to keep it. However, to do this, you must also be able to take full ownership of the house title within the time frame set by the Court once the divorce agreement is finalized.
One spouse keeps use and occupancy of the home for a specified period; typically when the youngest child turns eighteen, then the house can be sold.
In several states, a parent who has custody of children may be permitted to live in the family home until the child turns eighteen. What the Court decides can influence whether the spouse living there has to pay for the mortgage, utilities, insurance, and other expenses. The house will remain with that spouse until all the children reach eighteen years old. Only after that will the home be sold, and the money shared between the spouses.
Co-own the home
Divorce doesn’t have to be a tough and expensive battle. Sometimes, sharing a home can be the best choice for the family, whether you live together or apart. If you have kids and want them to stay in the same house, both parents can remain on the mortgage to keep things steady. For example, consider a couple with three kids. The husband works outside the home and brings in all the money, while the wife takes care of the children. Since she is a stay-at-home mom, she might not have enough money or a job history to buy her husband’s part of the house.
There are some benefits of this situation, including stability for the family, but it would require trust by the departing spouse that their previous partner will be able to make their payments on time. Otherwise, both partners would take a ding on their credit record.
The house is sold immediately and any equity is split up
Sometimes, selling your home is the easiest and clearest choice. You list the house for a price you both agree on, and after it sells, you divide the money either equally or as the Court instructs. How fast this happens can depend a lot on the housing market in your area. If the market is slow, your house needs repairs, or there are legal claims on the title, a typical sale might not be the best fit for you. In those situations, selling your property directly to a cash buyer or an investor could be a quicker and simpler way to sell the home so you can move forward with your life.
Selling Your House During A Divorce?
Contact Us For Your Cash Offer Today!
Steps to Sell a Home During Divorce
1. Hire A Divorce Specialist Real Estate Agent
Before listing your home for sale, the first thing you need to do is figure out how to divide assets, either with the help of lawyers or through the Court. Going through a divorce can be very challenging and emotional for everyone involved. It’s important to have skilled professionals who know how to sell real estate during a divorce to help you navigate this journey.
2. Agree On Home Sale Specifics
You and your partner need to figure out how you want to sell your home. Do you want to sell it quickly so you can split everything and move on, or would you rather take a bit longer to fix it up and get the best price possible in today’s market? If you can’t agree through your lawyers, the Court might have to step in.
If you choose to invest in repairs and improvements, you should agree on how to share those costs and how this will affect your final profit division. Before you spend any money, make sure you finalize these agreements with a lawyer so you don’t end up in a tough spot at closing.
But costs and profits are just the beginning. How will you handle the house during the listing? Which agent will you choose? How much should you ask for it? Will the house be empty, or will one of you live there until it sells? Who will handle the mortgage and bills, and if no one is living there, who will keep it ready for showings? If you can, let your lawyers sort this out before going to court. This can save time and prevent your profits from getting eaten up by legal fees.
3. Know What to Expect in Order to Close the Sale
There’s an important step where you and your ex-partner need to set aside your feelings to collaborate effectively and maximize your profit – evaluating offers from interested buyers. If you only receive one or two offers, it may be straightforward to decide. However, in a hot housing market where multiple offers come in, you might find yourself going back and forth with your lawyers and real estate agent to figure out which offer suits you best. To make this easier, it’s wise to agree on a plan before listing your home for sale. Whether you choose to accept the first offer with no conditions or prefer to go with the one that brings you both the highest profit at closing, it’s crucial to come to an agreement together before moving forward with the sale.
4. Divide the Proceeds
This is the last step, and it should be the easiest! Whether the courts or your attorneys helped finalize your divorce, you should know how the money from the house sale will be split. If there are any debts or claims on the home, the escrow company will take care of those before handing out the cash so you can start fresh.
OR
5. Sell Your House AS-IS to A Cash Buyer
Are you in a tough spot where you and your ex can’t communicate, or just prefer not to? Are you eager to end the marriage and begin a new chapter in your life? If the pressure from the divorce is overwhelming, a quick and easy sale of your joint property might be the best path forward. Selling your home to a cash buyer or investor could be the perfect solution for you!
Cash buyers and investors will purchase homes in any condition, regardless of the financial or personal situation of the owners. They focus on speedy closings, allowing homeowners to move on much quicker than with a regular sale. They buy properties as-is, meaning that even if your house needs significant repairs or updates, they are still ready to pay cash and complete the sale quickly. For couples navigating a difficult and costly divorce, this can be an ideal choice. Not only can they sell the home for a reasonable cash price, but they can also finalize the sale fast without getting bogged down in negotiations through lawyers and a shared real estate agent.
Selling Your House During A Divorce? Contact Us For Your Cash Offer Today!
Redemption Home Buyers is a trusted local home buying company that specializes in purchasing houses for cash, regardless of their condition or your financial situation. We provide fair cash offers without the need to work with real estate agents, lawyers, or deal with other complicated steps. If you think a quick home sale is the right choice for you, let’s talk! Reach us anytime at (225) 315-5993. Our goal is to make selling your house simple and stress-free.
If you have a property that you need to sell quickly because of a divorce, we can help. Get in touch with us today for a fair cash offer on your house or rental property. We buy homes, no matter what your circumstances are or how the property looks. Even if the house has seen better days or was damaged in a storm, once you agree to our cash offer, our skilled team will take care of all necessary repairs and improvements for you! We aim to make the process of selling your house during a divorce as easy as possible.