Have you ever felt like your house is more than just four walls and a roof? During a divorce, it becomes so much more than that. But here's where it gets even trickier: Should you keep the house or sell it?
But before taking any decision, you should always take a step back and consider all the possible options that are available to you. Dividing the assets during divorce is a complicated situation to be in, but don’t worry, this can be navigated smoothly because I'm here to help you to figure it out.
Let's break this down together, shall we? But at the end of the day, the choice depends on your financial situation, emotional ties, and long-term goals.
If you want to keep your home following divorce, there are several possible options. You may be able to offset your spouse’s share of the property against other assets, for example, giving them a larger share of the available pension provision or savings.
Another option may be to remortgage. If you are able to take on a larger mortgage or have the loan over a longer period, you may be able to buy out their share.
If you are caring for minor children, then you can ask the court for a Mesher order. This defers the sale of the property until the children are adults. A similar order may be available even if children are not a factor. This is known as a Martin order and allows a spouse to stay in the property for as long as they want.
A Martin order is generally only used when there are sufficient funds available for the person leaving the property to buy another home.
If you’re considering keeping the home, think about:
Before deciding, evaluate your finances to see if you qualify for a refinance. If keeping the house is a viable option, be sure you understand the financial trade-offs, including potential tax consequences and other assets you may need to give up in a settlement.
If you still have a mortgage on the home, refinancing will likely be necessary to remove your ex’s name from the loan. This process requires demonstrating financial stability to qualify for the mortgage independently, as well as paying your ex’s share of the home’s equity.
Additionally, you’ll need to account for closing costs and any potential tax implications that may arise from the transaction.
If the home is already paid off, rather than refinancing, you may need to compensate your ex by offering other valuable assets, such as investments, vehicles, or a portion of retirement funds, to ensure an equitable division of property.
Carefully assessing your financial situation and consulting with a financial advisor can help determine whether keeping the home is a viable and sustainable option.
One of the options for selling a home during a divorce is for one spouse to buy out the other’s share. This can be ideal if children are involved, as it allows them to stay in a familiar home, or if one spouse is particularly attached to the property.
The buyout price is typically determined by assessing the home’s market value, accounting for any outstanding mortgage or home equity loans, and calculating the other spouse’s equity share.
The buying spouse can fund the purchase with a lump sum from savings or by refinancing the mortgage under their name. If refinancing, they must qualify based on their individual income and be prepared to cover the mortgage, taxes, and upkeep alone.
Once the transaction is finalized, the selling spouse receives their agreed-upon share, transfers ownership rights, and moves out.
If you and your spouse decide to sell your home during your divorce proceedings, here are some essential steps to make the process smoother and more efficient.
1. Work with Experienced Professionals
Choosing the right professional is crucial to ensuring a smooth sale while minimizing conflicts between both parties. Ideally, you should seek out someone who specializes in divorce-related home sales, such as a Certified Real Estate Divorce Specialist (CREDS).
A neutral and experienced professional can help keep both parties focused on the goal of selling the home efficiently and at the best possible price.
Beyond marketing and pricing, a divorce-specialized expert can assist with legal and logistical challenges, from coordinating with attorneys to managing showings and resolving disputes over offers. With the right expertise, they help streamline the process, reduce stress, and ensure a fair and successful sale.
2. Determine a Fair Sale Price
Both spouses must agree on a listing price before moving forward. There are several ways to determine a home’s value, including online estimates and market analyses from a real estate agent. While this comes with a cost, it provides an unbiased assessment of your home’s market value, helping both parties reach a fair decision.
Understanding your home’s equity is important, as it determines how much each spouse will receive from the sale. If there is significant equity, reaching an agreement on price may be easier, knowing both parties will get a fair share.
However, if equity is low or negative due to an outstanding mortgage, additional negotiations may be required. In such cases, financial professionals can help assess better solutions.
3. Sell the Home and Divide the Proceeds
Once you settle on a price and list the home, your real estate agent will guide you through the selling process. This includes preparing the home for showings, marketing the property, reviewing offers, and handling closing paperwork.
After the sale is finalized, the proceeds will be divided based on your state’s laws and any agreements made through your attorney.
However in this phase, while you are planning to sell your home during divorce, it can be a lengthy and demanding process. That’s where The District Phx steps in- offering homeowners like YOU a way to quickly access their home’s equity for cash in just days, not months, so that you can focus on what matters most to you.
| Aspect | Keeping the House | Selling the House |
| Financial Burden | High costs: refinancing, buyout, mortgage, taxes, upkeep | Immediate financial relief, split proceeds, no future costs |
| Emotional Impact | Stability but constant reminders of the past | Fresh start, no emotional baggage |
| Affordability | Risk of financial strain or sacrificing other assets | Greater financial flexibility and security |
| Equity & Debt | Could mean carrying significant debt if equity is low | Fair asset division and quick access to funds |
| Legal & Logistical | Complex negotiations, possible court involvement | Faster, cleaner financial break |
| Market Conditions | Future value uncertain, potential resale risks | Selling now can maximize profits |
Lenders are being extra cautious. They’re double-checking employment. A job switch during the mortgage process? That could delay or even derail the deal.
One lender quoted: “If we can close before your last day at the old job, you’re good. But otherwise, it gets tricky.”
The reality? The rules are changing, and not everyone’s playing by the same playbook yet.
On the realtor side, agents are wearing multiple hats now. They’re not just helping you find a house — they’re helping you game out worst-case scenarios. They’re talking emergency funds, rental income potential, and fast resale options.
Because more and more, buyers want a home that gives them options. Something they can pivot with if life throws them a curveball.
I get it- selling your home is a major decision. It’s not just about accepting the highest offer; it’s about finding a buyer you can trust to follow through. With so many cash buyers out there, from individual investors to large corporations, the process can feel overwhelming.
Some make bold promises but back out when it’s time to close, while others bury hidden fees and fine print in the details.
That’s where The District PHX stands apart. We prioritize honesty, transparency, and a seller-first approach. No gimmicks, no last-minute surprises- just a smooth, complications free sale with solutions tailored to your needs.
When you work with us, you’re not just another deal; you’re a homeowner making a critical decision, and we’re here to ensure it’s the right one for you.
—
Andy
Founder | Real Estate Expert
Helping Arizona homeowners make smart moves, one market shift at a time. Book Free Consultation.