Posts from May 6th, 2025
6
Dividing the Home in Divorce: Sell, Buy Out, or Co-Own?
Understanding Your Options: One Stays, One Buys Out, or Sell and Split?
Not sure what to do with the house? Conflicting motivations often complicate the process. (See "Motivation" on page 4 and "Pricing" on page 7 of the Divorce Selling Guide.)
1. Sell and Split
Straightforward, clean division. Frees both parties to move on.
2. Buyout
One party refinances and pays equity to the other.
3. Delay the Sale
Works if done cooperatively, but can get messy without a plan.
Talk through all angles—then decide based on logic, not just emotion.
Download my free guide - Selling a House During Divorce - for more helpful information!
6
Buying a House During Divorce: Smart Move or Mistake?
Should I Buy a Home Before or After the Divorce is Final?
Buying too soon can create legal and financial complications. (See "Hope" on page 21 of the Divorce Selling Guide to understand how this desire can sometimes cloud judgment.)
1. Marital Property Rules
Buying before your divorce is finalized could complicate division of assets.
2. Debt-to-Income Ratio
Support obligations and shared debt can affect loan approvals.
3. Post-Divorce Purchases
Often cleaner and easier with separate credit, income, and documentation.
4. Renting for Now
Gives you time to plan and prevents rushed decisions.
Start fresh when the timing—and legal status—is right.
6
Who Pays the Mortgage After Divorce? What You Need to Know
What Happens to the Mortgage in a Divorce?
It's common to assume that once you separate, you're off the hook for the mortgage. Unfortunately, lenders don't see it that way.
(For related financial concerns, see "Burying the Bills" on page 18 of the Divorce Selling Guide.)
1. Joint Mortgage = Joint Responsibility
Even if you move out, you're still liable unless the loan is refinanced or the home is sold.
2. Sell the Home
Clean break. Proceeds pay off the mortgage, freeing both parties.
3. Refinance in One Name
Keeps one spouse in the home, but they must qualify solo.
4. Co-Own Temporarily
Requires careful planning and documentation to avoid problems.
Always confirm your plan with both your lender and attorney.
Download my...
6
How to Divide Home Equity in Divorce Without Stress
How to Split Real Estate Equity in a Divorce (Without Losing Your Mind)
Equity division can cause major tension, especially if it ties into underlying issues like motivation or revenge. (For more on that, see pages 4 and 6 of the Divorce Selling Guide.)
1. Determine the Home's Value
Get a comparative market analysis from a local expert.
2. Calculate Your Equity
Market value minus mortgage balance = your equity.
3. Decide How to Divide It
Sell and split, buyout, or delay the sale. Consider what works for both sides.
4. Factor in Selling Costs
Commissions, fees, and repairs affect your bottom line.
5. Work with Professionals
Ensure the equity split is documented properly in your divorce decree.
Neutral third-party analysis can prevent costl...
6
Selling a House During Divorce: What You Need to Do First
Selling the Marital Home: What Comes First?
Divorce can be one of life's most emotionally charged transitions. When real estate is involved, especially a marital home, decisions must be made carefully, yet efficiently. If you're in the early stages of divorce and wondering where to begin with the home, here's a step-by-step guide to help.
(For more on the emotional weight of this decision, see the Preface on page 2 and "Put It In Neutral" on page 23 of the Divorce Selling Guide.)
1. Understand Legal Restrictions
Talk with your attorney about court orders that may affect the sale.
2. Determine Ownership & Equity
Review the deed, mortgage, and equity with your agent and attorney.
3. Decide on the Goal
Buy out? Sell? Co-own temporarily? Weigh the pros and cons.
4. Hire a Neutral Real Estate Profession...
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