Keeping, selling or buying out the home

For many families the home is the largest asset and the most emotional one. You have more choices than keep or sell.

Your options

• Sell and split the proceeds. Clean, simple and final. Agree on the agent, the price and who pays what until closing.
• One spouse buys out the other. Usually by refinancing into one name and paying the other spouse their share of equity.
• Offset with other assets. One spouse keeps the home, the other keeps retirement or savings of similar value.
• Delay the sale. Some couples keep the home jointly until the youngest child finishes school. Put every detail in writing.

Work out your equity

Equity is the market value minus the mortgage and any home equity loan. If you sell, subtract selling costs, often 6 to 9 percent. The equity calculator does this for you.

Three common mistakes

1. Treating a deed change as a loan release. A quitclaim deed removes you from title, not from the mortgage. Only a refinance or the lender's release does that.
2. Signing before checking financing. Make sure the spouse keeping the home can qualify for a refinance on their own income before you agree.
3. Vague decree language. Name deadlines for the refinance or sale and what happens if they are missed.

A divorce mortgage specialist or real estate professional can check these before you sign. Book one from the Experts screen.

This guide is general information, not legal advice. Laws differ by state and change over time. For advice about your situation, talk to a licensed attorney in your state.