{"id":10965,"date":"2019-06-28T13:43:23","date_gmt":"2019-06-28T20:43:23","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=10965"},"modified":"2026-03-23T06:04:23","modified_gmt":"2026-03-23T13:04:23","slug":"divorce-house-sale","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/","title":{"rendered":"10 Reasons You Should Go Ahead with Your Divorce House Sale"},"content":{"rendered":"

If you bought your house while you were married, your gut reaction in a divorce is likely to fight to keep it. However, while a house is a substantial asset<\/a>, it can also create unnecessary hassle during an emotionally fraught time<\/a>.<\/p>\n

\u201cSome people think the house is the trophy<\/a>,\u201d said financial analyst Rosemary Frank<\/a> of Brentwood, Tenn., writing in Divorce Magazine. <\/i>\u201cFinancially, it can become a rock around your neck.\u201d<\/p>\n

Here, we\u2019ve gathered 10 instances when a divorce house sale is a smart decision.<\/p>\n

\"A<\/a>
Source: (Maresa Smith\/ Death to the Stock Photo)<\/figcaption><\/figure>\n

1. You can\u2019t afford the mortgage on your own.<\/h2>\n

If both spouses\u2019 names are on the mortgage, whoever wants to keep the house will have to refinance it solely in that person\u2019s name, said Allison Rank<\/a>, a top performing real estate agent in the metropolitan Kansas City, Missouri, area<\/a>, who works with divorcing clients.<\/p>\n

One spouse can relinquish their interest in a property to another through a quitclaim deed<\/a>, but that doesn\u2019t absolve the person of financial responsibility on a mortgage.<\/p>\n

\u201cA lot of people can\u2019t afford to carry it by themselves, or get a loan with just their income,\u201d she said.<\/p>\n

Refinancing during a divorce<\/a> is tough because you\u2019re removing one party from the obligation of the loan debt, adds Kevin Shaw<\/a>, a top-selling agent in Johnstown, Colorado<\/a>.<\/p>\n

\u201cIf you bought your home for $300,000 and now it\u2019s worth $600,000, you don\u2019t have access to that $300,000 in equity you\u2019ve built up to help with the refinancing. Your spouse has claim on half of that equity,\u201d he said.<\/p><\/blockquote>\n

Essentially, you\u2019re refinancing for the existing loan amount plus half of the existing equity<\/a>, so you\u2019ll need to qualify for a larger loan amount on your income alone.<\/p>\n

Even if you\u2019re able to afford your house payment after you refinance, you might not be able to afford the real estate taxes and insurance by yourself.<\/p>\n

If the house payment, real estate taxes and insurance equal more than one-third of your income, you\u2019ll likely be \u201chouse poor<\/a>,\u201d notes Karen Covy, a Chicago-area divorce attorney with over 25 years of experience, on her website.<\/p>\n

Some people think that child support or spousal support will help cover those payments, but it\u2019s best to be sure that you can handle them without that in case, for whatever reason, your ex can\u2019t pay what\u2019s due.<\/p>\n

2. You can\u2019t afford to buy out your spouse\u2019s share of equity.<\/h2>\n

Your house\u2019s equity is a marital asset, so your ex is entitled to a portion of this value<\/a>, according to LegalZoom.com. How much is determined by whether you live in one of nine community property states<\/a>\u2014Arizona, Nevada, California, New Mexico, Washington, Wisconsin, Idaho, Texas, and Louisiana\u2014or one with an equitable distribution system<\/a>. (MaritalLaws.com<\/a>, an online resource for divorce, property division, alimony, custody, child support, and visitation laws, provides the divorce laws of each state with an easy,<\/a> interactive map<\/a> and all the fine print in one place.)<\/p>\n

In a nutshell, courts in community property states treat all assets as if both spouses own them equally and divides equity 50-50. In equitable distribution states, the court takes into account factors such as each spouse\u2019s current earnings, needs, contribution to the acquisition, and so on, dividing equity so that one spouse has a higher percentage than the other.<\/p>\n

To ensure that your ex gets the portion of equity entitled by law, you\u2019ll either have to refinance enough to cover that amount, or offset your ex\u2019s portion<\/a> by giving up your claim on other marital assets of equal value. This might mean reducing your portion of a retirement account or negotiating less alimony. Can you financially handle those concessions?<\/p>\n

3. Tax law isn\u2019t in your favor.<\/h2>\n

Changes in the tax code have affected the deduction for alimony and the benefits of homeownership. For starters, the 2018 Tax Cuts and Jobs Act<\/a> states that alimony payments won\u2019t be deductible, resulting in a larger tax bite for the recipient.<\/p>\n

Married taxpayers used to be able to deduct interest on a mortgage of up to $1 million, but as of the 2018 tax year, only interest on mortgage values of up to $750,000<\/a> are deductible, notes U.S. News World Report.<\/i><\/p>\n

Although there is a grandfathered deduction<\/a> for mortgages taken out before December 14, 2017, removing one spouse from the mortgage could result in refinancing, which means the mortgage could be subject to the new tax law.<\/p>\n

You also want to think about how holding on to the house for any period of time could impact your eligibility for the capital gains tax exclusion<\/a>. The government allows married couples to exclude up to $500,000 of capital gains on their home sale<\/a> while single filers can exclude up to $250,000. If you sell your house after getting divorced or remain married but change living situations, you could inadvertently increase your tax liability<\/a> without proper planning.<\/p>\n

Talk to a tax professional for further guidance.<\/p>\n

\"\"<\/a>
Source: (Niklas Hamann\/ Unsplash)<\/figcaption><\/figure>\n

4. You can\u2019t handle the upkeep.<\/h2>\n

There are instances where a divorced couple can continue to co-own a home, but a workable solution is easier to reach in theory than in practice, says the law firm Ayo and Iken<\/a>, which has served western, central and southeastern Florida for 14 years.<\/p>\n

Let\u2019s say you agree that you\u2019ll stay in the marital home until all minor children have graduated from high school; then you and your ex will sell the house and divide the proceeds.<\/p>\n

Trouble is, your ex spends the next five years complaining<\/a> about how well you\u2019re trimming the shrubs, the color of the exterior, and so on.<\/p>\n

\u201cYou are likely to find this invasive, while your ex may feel [that] since the house is still technically half theirs, they have every right to dictate what you do or don\u2019t do to the house,\u201d the law firm notes on its website.<\/p>\n

5. You don\u2019t know what the market will bear.<\/h2>\n

Real estate is generally an appreciating asset<\/a> that increases in value at a rate of 3%-5% per year<\/a>. But the market does ebb and flow in cycles<\/a> and if you\u2019re seeing any of these 5 signs of a downturn<\/a>, you\u2019d be better off making an exit strategy and cashing out.<\/p>\n

Also don\u2019t forget that you should expect to budget 1%-3% of your home\u2019s value<\/a> for the cost of maintenance and repairs depending on your home\u2019s age and condition.<\/p>\n

6. You don\u2019t want to be responsible for all repairs, closing costs, and related risks.<\/h2>\n

If you sell the house prior to your divorce, that\u2019s on you as a couple, Rank said. You pay all closing costs and expenses together.<\/p>\n

Once you\u2019re divorced, your ex isn\u2019t on the hook for anything related to the house sale, unless it\u2019s specified in the divorce decree<\/a>.<\/p>\n

If you and your ex don\u2019t retain joint ownership of the house, then whoever is on the mortgage also assumes other risks associated with selling later, such as \u201cstructural risks<\/a>\u201d of undiscovered problems like cracks in the foundation, radon, or mold, adds Divorce Magazine.<\/i><\/p>\n

7. You\u2019re upside-down in the mortgage.<\/h2>\n

If your house is worth less than you owe<\/a> on it, your divorce becomes more complicated, said Emily Doskow, author of Nolo\u2019s Essential Guide to Divorce <\/i>and writer on Divorce Net by Nolo, one of the leading websites for legal matters. One option is to negotiate a change in the terms of your mortgage, which is trickier if your house has a second mortgage or a home equity line of credit.<\/p>\n

If you have only one loan on the property, you could sell your house in a short sale<\/a>, which is where a buyer pays less than the amount on the mortgage but the bank agrees not to pursue you for the difference, avoiding a foreclosure on your record.<\/p>\n

\"\"<\/a>
Source: (Josh Hemsley\/ Unsplash)<\/figcaption><\/figure>\n

8. You don\u2019t need all that space.<\/h2>\n

Particularly if you\u2019re older, you may want to start fresh in a smaller place. A recent Merrill Lynch survey of retirees over age 50 found that 51% of those who have moved since retiring opted for a smaller home<\/a>.<\/p>\n

A house that was suitable for raising a family or for two adults may have too much square footage, not to mention memories, for one person. A smaller abode<\/a> lightens your amount of housework and yard work, reduces your monthly expenses, and clears out clutter.<\/p>\n

9. You need the money.<\/h2>\n

Divorce attorneys say that if you have a fixed rate mortgage<\/a> with a low monthly mortgage payment and relatively low property taxes, it might make good financial sense to keep your marital home.<\/p>\n

That said, you and your ex may have considerable debts to resolve where your home\u2019s equity could prove valuable. Divorce itself is an expense. Unless you have a simple uncontested divorce<\/a> where you can use an online service for about $250 to $500, you could pay about $5,000 on average for mediation, or $15,000 and up for a contested divorce.<\/p>\n

\"A<\/a>
Source: (Roman Koval\/ Pexels)<\/figcaption><\/figure>\n

10. You want a clean slate.<\/h2>\n

Dividing property is \u201cone of the greatest burdens of the divorce process<\/a>,\u201d because of the legal as well as psychological value, notes the American Psychological Association. Even without the context of a divorce, for many people, a house is not just a place to live but \u201can extension of my physical body and my sense of self<\/a>,\u201d said Dr. Karen Lollar, writing in the peer-reviewed academic journal Qualitative Inquiry<\/i>.<\/p>\n

You may be able to afford to keep your marital home, but once you\u2019re divorced, will you truly be happy there? \u201cWill there be bad memories for you?\u201d asks the law firm Ayo and Iken. \u201cWill you ever feel that this is truly your home<\/a> rather than the home of you and your ex?\u201d<\/p>\n

You may not be holding on to the house<\/a> out of anger, but staying in your house could hold you back in this new phase of your life.<\/p>\n

As you consult with financial and lifestyle professionals like a real estate agent with divorce experience<\/a>, an accountant, and financial adviser, also think hard and seek help about what you\u2019ll need to move forward emotionally.<\/p>\n","protected":false},"excerpt":{"rendered":"

Your gut reaction may be to fight for the house in a divorce. Here\u2019s why a divorce house sale might be a better option all around. <\/p>\n","protected":false},"author":76,"featured_media":10966,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[430,319],"tags":[776],"class_list":["post-10965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-divorce","category-selling-advice","tag-do-i-have-to-sell-my-house-in-a-divorce"],"acf":[],"yoast_head":"\n10 Reasons You Should Go Ahead with Your Divorce House Sale<\/title>\n<meta name=\"description\" content=\"Your gut reaction may be to fight for the house in a divorce. Here\u2019s why a divorce house sale might be a better option all around.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"10 Reasons You Should Go Ahead with Your Divorce House Sale\" \/>\n<meta property=\"og:description\" content=\"Your gut reaction may be to fight for the house in a divorce. Here\u2019s why a divorce house sale might be a better option all around.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-28T20:43:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-23T13:04:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/06\/divorce-house-sale.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Valerie Kalfrin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@valerie-kalfrin\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Valerie Kalfrin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"10 Reasons You Should Go Ahead with Your Divorce House Sale","description":"Your gut reaction may be to fight for the house in a divorce. Here\u2019s why a divorce house sale might be a better option all around.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/","og_locale":"en_US","og_type":"article","og_title":"10 Reasons You Should Go Ahead with Your Divorce House Sale","og_description":"Your gut reaction may be to fight for the house in a divorce. Here\u2019s why a divorce house sale might be a better option all around.","og_url":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/","og_site_name":"HomeLight Blog","article_publisher":"https:\/\/www.facebook.com\/gohomelight\/","article_published_time":"2019-06-28T20:43:23+00:00","article_modified_time":"2026-03-23T13:04:23+00:00","og_image":[{"width":1500,"height":800,"url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/06\/divorce-house-sale.jpg","type":"image\/jpeg"}],"author":"Valerie Kalfrin","twitter_card":"summary_large_image","twitter_creator":"@valerie-kalfrin","twitter_site":"@gohomelight","twitter_misc":{"Written by":"Valerie Kalfrin","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#article","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/"},"author":{"name":"Valerie Kalfrin","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/234e3147a305073d2c8cb21d61865465"},"headline":"10 Reasons You Should Go Ahead with Your Divorce House Sale","datePublished":"2019-06-28T20:43:23+00:00","dateModified":"2026-03-23T13:04:23+00:00","mainEntityOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/"},"wordCount":1741,"publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/06\/divorce-house-sale.jpg","keywords":["Do I have to sell my house in a divorce?"],"articleSection":["Dealing with the house in a divorce","Selling Advice"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/","url":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/","name":"10 Reasons You Should Go Ahead with Your Divorce House Sale","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#primaryimage"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/06\/divorce-house-sale.jpg","datePublished":"2019-06-28T20:43:23+00:00","dateModified":"2026-03-23T13:04:23+00:00","description":"Your gut reaction may be to fight for the house in a divorce. Here\u2019s why a divorce house sale might be a better option all around.","breadcrumb":{"@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.homelight.com\/blog\/divorce-house-sale\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#primaryimage","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/06\/divorce-house-sale.jpg","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/06\/divorce-house-sale.jpg","width":1500,"height":800,"caption":"Source: (Evan Smogor\/ Unsplash)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.homelight.com\/blog\/divorce-house-sale\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.homelight.com\/blog\/"},{"@type":"ListItem","position":2,"name":"10 Reasons You Should Go Ahead with Your Divorce House Sale"}]},{"@type":"WebSite","@id":"https:\/\/www.homelight.com\/blog\/#website","url":"https:\/\/www.homelight.com\/blog\/","name":"HomeLight Blog","description":"Real Estate Advice from America's Top Agents","publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.homelight.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.homelight.com\/blog\/#organization","name":"HomeLight","url":"https:\/\/www.homelight.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","width":1348,"height":262,"caption":"HomeLight"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/gohomelight\/","https:\/\/x.com\/gohomelight","https:\/\/www.linkedin.com\/company\/homelight\/","https:\/\/www.youtube.com\/channel\/UCimugR9XF17-OZ7B9fNnxWw","https:\/\/en.wikipedia.org\/wiki\/HomeLight"],"description":"Everything you need to know to sell your house faster and for more money. Articles, guides, and advice from top agents all over the U.S.","email":"support@homelight.com","telephone":"(888) 688-0350","legalName":"HomeLight","foundingDate":"2012-01-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"201","maxValue":"500"}},{"@type":"Person","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/234e3147a305073d2c8cb21d61865465","name":"Valerie Kalfrin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/86b69a0e8a73ca97e0cc84bf6294e479059bce7b41ed89cec2bbacf27469f4b6?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86b69a0e8a73ca97e0cc84bf6294e479059bce7b41ed89cec2bbacf27469f4b6?s=96&d=blank&r=g","caption":"Valerie Kalfrin"},"description":"Valerie Kalfrin is a multiple award-winning journalist, film and fiction fan, and creative storyteller with a knack for detailed, engaging stories.","sameAs":["https:\/\/www.linkedin.com\/in\/valeriekalfrin\/","https:\/\/x.com\/valerie-kalfrin"],"url":"https:\/\/www.homelight.com\/blog\/author\/valerie-kalfrin\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/10965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/76"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=10965"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/10965\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/10966"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=10965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=10965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=10965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}