What To Do With the Home During a Divorce

Divorce is never easy. Along with the emotional challenges, one of the biggest questions couples face is what to do with the home. Since your house is often your largest asset, the decision you make can have long-term financial and personal impacts. Deciding what to do with it requires careful thought so you can move forward with confidence.

Your Options With the House

Every divorce is different, but in most cases, you’ll have four main choices:

1. Sell the home and split the proceeds
This option gives both parties a clean financial break. The key here is to sell for top dollar so each person walks away with as much equity as possible.

2. One spouse buys out the other
If one person wants to stay, a buyout may be possible. Keep in mind this usually means refinancing the mortgage and qualifying on a single income.

3. Be bought out by your spouse
If you’re the one moving on, a buyout can give you cash for a fresh start. Be cautious though: unless the loan is refinanced, you may still be responsible for the mortgage, which can affect your ability to qualify for a new home loan.

4. Keep joint ownership for now
Some couples decide to hold the property together for a period of time, even if only one person lives there. This can delay decisions but may also create future tax or financial complications.

Important Considerations

• Finances first: Can you afford the home on your new budget?

• Refinancing: Will the lender allow you to qualify alone?

• Taxes: Selling now versus later may carry different tax implications.

• Fresh start: Sometimes a move to a new home helps both parties emotionally reset.

When Selling Makes Sense

If you and your spouse agree to sell, working with a trusted professional is crucial. You’ll both want to be involved in setting the listing price, reviewing offers, and negotiating. A clear strategy can help maximize your equity so both sides benefit.

Looking Ahead

Once the home is sold or divided, the next step is planning for your new living situation. Whether you’re buying or renting, it’s important to set a realistic budget and find a place that fits your new chapter.

At Founded Realty, we specialize in guiding families through complex transitions like divorce. Our role is to provide clarity, protect your financial future, and help you avoid costly mistakes. If you’re facing divorce and wondering what to do with the house, schedule a confidential consultation today.