Selling a home during or after a divorce can be one of the most emotionally and financially complex steps in the process. A house that once represented your shared future is now a major asset that needs to be divided fairly. Whether you’re aiming for a clean break or trying to minimize disruption for your children, selling the house can often be the most practical solution. No matter where you live, whether you’re selling a home in Seattle or a condo in Los Angeles, doing so during divorce involves legal, financial, and emotional decisions that are easier to manage with the right plan in place.
This Redfin guide covers everything you need to know about how to sell a house during a divorce: who gets the home, how it’s classified, when to sell, and how to navigate the process with less conflict and more clarity.
What are your options for handling a house in a divorce?
When divorcing, couples usually choose one of these four options for the home:
- Sell the home and split the proceeds
- One spouse buys out the other
- Co-own the home temporarily
- Trade the home for other large assets
We break each option down below to help you decide what works best for your situation.
1: Sell the home and split the proceeds marital home
This is often the cleanest option. You put the home on the market, sell it, and split the proceeds based on what’s agreed to in your divorce settlement or court order. This can help both parties start fresh.
Pros:
- Provides a clean break
- Frees up equity to pay off shared debts or cover legal fees
- Neither party is tied to the property
Cons:
- You’ll need to cooperate on pricing, showings, and negotiations
- If the market is slow, you could be stuck paying the mortgage longer than expected
- Selling may be disruptive to children if they’re still living in the home
2: One spouse buys the other out
In a buyout, one spouse pays the other for their share of the home and takes full ownership – often to maintain stability or avoid uprooting children. It can ease the emotional impact by keeping kids in the same school and neighborhood. A buyout is typically done through a refinance, but the remaining spouse must qualify for the loan and afford the mortgage solo.
Pros:
- Allows one person to stay in the home
- Avoids the hassle of listing, staging, and selling
- Can be rolled into a refinance
Cons:
- Requires significant cash or financing to cover the buyout
- The remaining spouse must qualify for the mortgage on a single income
- The home may later need to be sold anyway if it becomes unaffordable
3: Continue co-owning the home after divorce
Some couples choose to keep the home jointly after divorce for financial or logistical reasons. One person may stay in the home while both parties share ownership and costs, often with an agreement to sell at a later date.
Pros:
- Maintaining a valuable investment
- You may preserve tax benefits
- You can wait for a better market
Cons:
- Ongoing financial entanglement after divorce
- Risk of missed mortgage payments affecting both parties’ credit
- May complicate future tax filings or claims on the home’s appreciation
4: One spouse keeps the house, the other takes other assets
If you have multiple high-value assets – like investment accounts, vacation properties, or retirement funds – you might agree to trade off. One spouse keeps the house, while the other takes assets of equal value.
Pros:
- Speeds up negotiations and may reduce friction
- Avoids selling the home if one party is attached to it
Cons:
- Requires accurate valuations of all major assets
- Might not be an option if assets are illiquid or unevenly distributed
- Can have long-term financial impacts if values fluctuate post-divorce
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Thinking of selling?
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Who gets the house in a divorce?
Ah, the million-dollar question -sometimes literally. Deciding who gets the home depends on a few key factors: whether the house is considered marital or separate property, what your state laws say, and whether you have a prenuptial or postnuptial agreement in place.
Marital vs. separate property
Marital property includes most assets and debts acquired during the marriage – regardless of whose name is on the title. If the home was purchased after you got married, it’s typically considered marital.
Separate property includes assets owned by one spouse before the marriage, as well as gifts or inheritances. However, separate property can become marital if, for example, both spouses contributed to the mortgage or renovations.
What if you live in a community property state?
In community property states, the rule is simple: what’s yours is mine, and what’s mine is… also yours. That means all income, property, and debt acquired during the marriage is considered jointly owned and typically split 50/50 in a divorce. States that follow this system include California, Texas, Arizona, Nevada, and a few others that apparently enjoy making things mathematically fair—even if emotionally complicated.
Equitable distribution states
If you don’t live in a community property state, congratulations – you’re in an equitable distribution state, where “fair” doesn’t always mean “equal.” Here, the court divides marital property based on factors like each spouse’s income, contributions, future needs, and even who’s keeping the dog. It’s more flexible and often feels more personalized – but that also makes it harder to predict how things will be split.
What role do prenups and postnups play?
If you have a prenuptial or postnuptial agreement, it may outline who gets the home – or how it should be sold. These agreements can override state laws and provide a clearer roadmap for dividing property.
When should you sell the home: before, during, or after divorce?
The best time to sell depends on your legal, financial, and emotional readiness. Each option has pros and cons:
Selling before divorce
Selling early can simplify things—you’re still co-owners and may not need court approval. It also gives both of you access to funds and may qualify you for the full $500,000 capital gains tax exclusion as a married couple. This route works best when both parties are cooperative and can agree on how to split the profit.
Selling during divorce
This option is trickier. Legal restrictions -like automatic temporary restraining orders (ATROs)- often limit your ability to sell without court approval. You’ll need attorney involvement and may face delays. But if you’re still filing jointly, the $500,000 tax exclusion may still apply.
Selling after divorce
Post-divorce sales are often outlined in the divorce agreement, especially when kids are involved. While this gives clarity on timing and roles, it also means one party may live in the home while both remain on the mortgage. You’ll lose the joint tax benefit, and any default can still hurt both credit scores.
How long do you have to sell the house?
There’s no set rule, but your divorce decree may set a deadline. Some court orders set a clear deadline—like within six months or after the kids finish school. If your decree doesn’t say, ask a lawyer to clarify. Even without a legal timeline, practical factors like mortgage costs, childcare, or the housing market may push you to sell sooner rather than later.
What if one spouse refuses to sell?
If one person doesn’t cooperate, the court can step in—especially if your agreement says the house must be sold. Mediation is often the first step to finding a compromise. But if that fails, a judge can enforce the sale and penalize the uncooperative spouse. Meanwhile, unpaid bills like the mortgage and taxes can add fuel to the fire, so delays can be costly for both sides.
Tips for selling a home during divorce
The key to getting through it is creating structure, setting expectations early, and keeping communication as clear and neutral as possible. Treating the home sale like a joint business venture – complete with timelines, roles, and ground rules – can make a hard situation more manageable.
Below are some best practices for managing the sale with fewer conflicts and more control.
1. Agree on repairs and listing strategy
Before listing the home, decide together what (if any) repairs or updates should be made. Will you sell as-is, or invest in fixes to improve market value? Be honest about what you’re both willing to spend and how quickly you want to sell. Agreeing on a shared strategy early helps avoid last-minute arguments that can delay the process.
2. Hire a neutral real estate agent
Choose a neutral, experienced real estate agent who understands how to work with divorcing couples. A good agent will act as a buffer, keep things professional, and ensure both parties are informed throughout the sale. Make sure you’re both comfortable with the choice, and clarify how the agent will communicate—group emails, separate updates, etc.
3. Split sale-related costs fairly
From staging to photography to marketing, selling a home comes with expenses. Decide upfront how these costs will be divided. Some couples split everything 50/50, while others deduct shared costs from the final sale proceeds. Put your agreement in writing to avoid confusion later.
4. Plan how to handle offers and closing details
You’ll both need to agree on the list price, review offers together, and approve the final terms of the sale. Be prepared for compromises—whether it’s accepting a slightly lower offer for a faster close, or negotiating over closing dates. It helps to discuss these preferences in advance so decisions aren’t made emotionally under pressure.
5. Stay current on mortgage payments
Until the home sells, the mortgage still needs to be paid. Determine how you’ll split those payments during the listing period, and make sure both parties stay current. Missed payments can hurt both of your credit scores and potentially derail the sale.
What are the tax implications of selling your home in a divorce?
Dividing the house is tough—but the tax questions can be just as confusing. If you sell your home during or after a divorce, you may owe capital gains taxes on any profit. Thankfully, the IRS offers exclusions that can significantly reduce what you owe—if you meet the requirements.
Selling before the divorce
If you sell before the divorce is finalized and file a joint return, you may qualify for the $500,000 capital gains exclusion. You must have owned and lived in the home for at least two of the last five years. This is often the most tax-friendly option and can simplify filing.
Selling after the divorce
Once divorced, each spouse may qualify for a $250,000 exclusion—but only if they meet the two-out-of-five-years residency rule individually. If one person moved out years ago, they may no longer qualify.
Watch the timing
To use the exclusion, the home must generally be sold within three years of moving out. Missing that window could mean paying taxes on any gains.
When is the best time to sell your home?
When it comes to selling your home during or after a divorce, timing should be strategic. The real estate market fluctuates throughout the year, and choosing the right time to list can have a major impact on how quickly your home sells and how much you make from it.
Spring and summer are peak seasons
In most markets, spring and early summer are peak selling seasons. Homes tend to sell faster and for higher prices during this time, thanks to better weather, longer daylight hours, and motivated buyers. If children are involved, listing in late spring or early summer also aligns with the school calendar, making it easier for families to transition without mid-year disruptions.
A seller’s market can be an advantage
If you’re in a seller’s market—where demand is high and inventory is low—you’re more likely to get multiple offers, sell quickly, and potentially avoid price reductions. This can be especially helpful during a divorce, when both parties may need the equity from the sale to cover legal fees, move into separate homes, or simply start fresh.
A final note on selling your home during divorce
Selling a home during a divorce is rarely simple, but it doesn’t have to be overwhelming. With a clear plan, open communication, and the right professionals in your corner, you can move through the process with fewer surprises and fewer headaches and come out the other side with a resolution that works for both of you.
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