Selling a house during a divorce can be a challenging and emotionally charged process. Whether the decision is mutual or court-ordered, navigating the legal, financial, and emotional aspects of a home sale requires clear planning and professional guidance.
This guide walks you through everything you need to consider, from deciding whether to sell to splitting proceeds and handling negotiations.
| 👩⚖️ Need help selling during a divorce? Clever’s free agent matching service connects you with experienced realtors who know how to navigate sensitive sales and work with divorce attorneys. Learn more |
Key questions about selling a house in a divorce
Before putting up a “For Sale” sign in the yard, take time to align on the details to help the process go more smoothly. Here are some key questions to ask:
- Do we both agree to sell the house?
- Can one of us afford to keep the house?
- What does our divorce agreement (or decree) say about the home?
- How will we handle disagreements about price or offers?
- Are we in a community property or equitable distribution state?[1]
- Will either of us stay in the house until it sells?
- How will we split the costs of preparing the home for sale, including repairs, staging, and utilities?
- How will we choose a real estate agent and agree on listing terms?
- How will we divide the sales proceeds?
- What happens if the home sells for less than the mortgage balance?
- Who will pay the mortgage during this time? Will they get more of the proceeds to offset the additional costs?
- How will showings be handled? Who will be responsible for keeping the home in "show-ready" condition?
- What’s plan B if the house doesn’t sell quickly?
Community property states require spouses to divide assets 50/50 in a divorce. This could be 50/50 per asset, or a 50/50 split of all assets combined. If one person bought the home before marriage, however, they might not have to split the sale 50/50.
Alaska, South Dakota, and Tennessee are unique in that they allow the couple to choose equitable distribution or a 50/50 split.
When a judge orders the sale of a home
When you and your spouse can’t agree on what to do with the house, a judge may decide for you. They can order a sale as part of the divorce decree.
You would be legally obligated to follow the court’s instructions for your home sale, including how to price the home, when to sell it, and how to split the proceeds.
Buy out vs. sell together
If you want to keep the house, you'll need enough cash to not only buy out your ex but also to afford monthly housing payments on your own. Otherwise, selling the home could be the easiest way for both parties to get their share of the proceeds.
Buyout vs. Selling
Here’s a quick rundown of the pros and cons of buying or selling a home, so you and your spouse can discuss which option might work best for both of you.
| Option | Pros | Cons |
|---|---|---|
| Buyout | One spouse keeps the home; stability for kids | Requires refinancing and/or large cash payment |
| Sell together | Clean break; both get cash to start fresh | Must coordinate sale and agree on terms |
| Court-ordered | Legal clarity; enforces a sale if one spouse refuses | May be contentious; less control over timing/terms |
One spouse buys out the other
In a divorce buyout, one spouse buys the other spouse's equity interest in the home and continues to own it. For example, if you and your ex-spouse have $100,000 in home equity, a buyout might involve paying your ex-spouse $50,000 for sole ownership of the house.
» CALCULATOR: How to Buy Someone Out of a House
The best reason to buy another spouse’s equity is to maintain a family home, either because you need to stay in the same location for work or your children’s school.
Both spouses sell the home and split the proceeds
If you and your spouse agree to sell the home together, you can divide the profits however you both agree (e.g., 50/50, 40/60, 30/70).
Need to move fast? Try an iBuyer
If you’d rather sell your home fast versus getting top dollar, consider selling to an iBuyer. An iBuyer will evaluate your home online and make a quick cash offer, putting you on the fast track to closing.
Clever's licensed concierge team can connect you with top-rated realtors to perform a free professional comparative market analysis (CMA). The analysis can help you better evaluate your cash offers. Even if you sell to an iBuyer, we still recommend working closely with an attorney.
Court orders the home sold
This is not ideal because it’s costly, and you don’t get to choose when and how the house is sold. However, it could be the best path if you and your spouse can’t agree on the home sale or the other spouse refuses.
Selling a house in a divorce: Step-by-step
The process of selling a house during a divorce is more or less like selling a house at any other time. But here are some variables specific to divorce that you should keep in mind.
1. Connect with a lawyer
Since each state has different laws regarding property sales in a divorce, you should consult a real estate attorney for legal advice on how best to proceed. If you’re already working with a divorce lawyer, they may be able to advise you on your home sale.
2. Find a real estate agent
A realtor can provide immense relief for spouses who are simply too tied up in the divorce to invest sufficient time and effort into their home sale. Their goal is to sell the home for the most money possible within a reasonable timeframe — something both spouses can likely agree is important.
It’s always a smart idea to enlist the services of a good real estate agent when selling your home, and even more so when you’re in the middle of a divorce.
» MORE: Try Clever’s free service: Compare top local realtors, sell without the headaches
3. Get a comparative market analysis
A comparative market analysis evaluates similar home sales in your neighborhood against current market conditions to determine the optimal price for your home. Experienced real estate agents with dozens or even hundreds of sales under their belt can provide accurate estimates and suggested list prices.
If your home has unique features, is in a rural area, is historic, or has other characteristics making it hard to get an accurate estimate, your real estate agent may suggest an appraisal. These can be costly, sometimes exceeding $400, but an appraisal may be necessary in certain situations.
4. List the home
Listing your home before or after the divorce has benefits and disadvantages that should be considered. Here’s a closer look.
Listing before filing for divorce
Pros
- Avoids legal hurdles
- Easier to coordinate sale
Cons
- Proceeds may need to be kept in escrow
- Need to find another place to live
You’ll typically encounter fewer hassles and disputes when you sell your home before filing for a divorce because you can keep the property title in both your names and continue sharing housing expenses.
However, the proceeds may need to stay in escrow until it comes time to divide them equally. That could make finding suitable housing arrangements harder because you won’t have access to the cash. Selling the house also means that you or your spouse may need to make a rushed move or deal with temporary housing arrangements.
Listing after finalizing the divorce
Pros
- May have more emotional distance from home
- More time to prepare the home
Cons
- Could face additional disputes
- May lose leverage with buyers
One benefit of selling the home after a divorce is that you may have more emotional distance from the home and the situation, making the selling process feel easier. There’s also more time to prepare the house for sale or to find another place to live.
However, talk to your attorney about selling before finalizing the divorce. You could face increased legal complexity when you sell after a divorce, especially if one person ends up on the title or lives in the home for longer.
| Moreover, if buyers know you’re listing because of a divorce, they might seize the moment to make a low offer in the hopes that you’ll be motivated to sell fast. To make sure you get a fair price, compare offers from a few buyers. Clever Offers can help you compare cash offers from multiple buyers, including companies and investors. |
5. Agree on how to handle offers and negotiations
Signing a listing agreement before putting the home up for sale can help avoid conflict when it comes to points of negotiation. A listing agreement can outline:
- The price range in which you and your ex would like to sell the home
- Any contingencies you'd agree to accept
- A potential closing and move-out period
Your agent or attorney could also step in when needed to settle any disputes.
💡 Tip: Avoid last-minute disagreements by putting a conflict resolution clause in your listing agreement. For example, your attorney or agent has the final say if you can’t agree.
6. Close
Closing on a home sale during a divorce typically follows a similar process to a standard home sale, with a few additional steps. If you finalize the divorce before closing day, complete:
- A review of your settlement. Your real estate agent and lawyer may review your divorce agreement to confirm that the home sale complies.
- A new title search. Buyers may check the title for any judgments or liens. This is more common if a title search was done before the divorce was finalized and the final orders have been issued in the meantime.
7. Divide the sale proceeds
You can split the proceeds of a home sale 50/50, though a few things could justify one spouse getting a bigger cut, such as:
- Higher equity. If one person continues to pay the mortgage while the other doesn’t, they would have more equity.
- Maintenance and repairs. If one spouse pays for the upkeep while the home is being sold, they may receive a larger share of the profits to reimburse themselves.
- An exchange of assets. You or your spouse may receive an investment account or other assets, rather than home equity.
💰 What about taxes?
You may be eligible for the $500,000 joint exclusion if the home is sold while you’re still married and filing jointly. After divorce, each spouse may qualify for a $250,000 exclusion if they meet IRS requirements. You could be subject to capital gains tax if your home has appreciated significantly. Always consult a tax professional when selling a home during divorce.
FAQs
Is it better to keep a house or sell in a divorce?
You may need to sell your house in a divorce if a judge requires it, you're not eligible for the mortgage, or you can't afford it anymore.
How long do you have to sell a house after divorce?
Your divorce settlement may outline when the home must be sold. If it doesn’t, there’s no legal deadline for the sale.
However, you must have lived in the home for at least two of the five years before the sale to qualify for the capital gains tax exclusion.[2] The exclusion is up to $250,000 when filing singly. If too much time passes after you move out, you may no longer meet the IRS ownership and use tests, and you could owe capital gains tax on the profit.
Can I sell my house before the divorce is finalized?
You may need to get the court’s permission to sell your home before the divorce is finalized. You and your spouse will also need to agree on how the proceeds will be divided and keep careful accounting of the sale proceeds.
If the home sale is tied to dividing marital assets, the court may delay finalizing the property division portion of your divorce until the house is sold and the proceeds are available.
What happens if one spouse refuses to sell the house?
If negotiating with your spouse doesn’t work, you can ask the court to step in and have a judge order the house be sold. However, it’s a costly process, often totaling several thousand to tens of thousands of dollars.