Navigating Divorce and Your Home: 7 Crucial Considerations

Clear, compassionate guidance on the home during a divorce.

When a marriage ends, the home is often the biggest shared asset and the hardest one to sort out. There are money questions, timing questions and emotional ones, and they tend to land all at once.

This guide walks through seven questions to work through about the house, whether you end up keeping it, selling it or something in between. It isn't legal advice and doesn't replace your own attorney. It helps to have a team you trust: each of you with your own attorney, a real estate agent who's experienced with these sales, and often an accountant or tax advisor.

Selling isn't the only option

Every situation is different, and you may have more choices than you think. One of you might keep the home, sometimes by buying out the other's share. You might divide several assets so things balance out, or agree that one of you stays for a set period before the home is sold.

If there's a mortgage, talk with the lender early. When both incomes were used to qualify for the loan, one person may not qualify alone. Work through what's possible with your attorneys and lender before you settle on a plan.

Who stays, and who handles what

There are three basic living arrangements while the house is being sorted out: you both stay, one of you stays, or neither of you does. Each one affects safety, cost and how the home will show. If you both move out, you're paying for two new places while still covering the mortgage, insurance, taxes, utilities and upkeep on the house. An empty home also tends to show less well, so think about leaving furniture in place or having it staged.

Whoever stays usually takes on day-to-day upkeep and getting the house ready for showings. It also helps to agree early, and in writing, on which repairs or updates to make, who'll coordinate them and how they'll be paid for. Sometimes costs are split, and sometimes they come out of the proceeds at closing.

Choosing an agent and making decisions together

The agent who sold you the house isn't automatically the right one now. You want someone who's experienced with these sales, communicates directly and frequently with both owners, and earns the trust of each of you. Negotiations often start before the house is listed and run right up to closing, and they can be time-sensitive. So have a plan for reaching decisions quickly, whether the agent acts as a go-between or each of you has someone representing you.

Common questions about divorce and your home

Are there tax consequences to selling a home during a divorce?

There can be. A sale may bring capital gains or other tax obligations, and things like your filing status and how the proceeds are divided can affect what each of you owes. Talk with a CPA or tax advisor before you list, and coordinate with each party's attorney.

What happens to the furniture and other things inside the home?

Decide that early, too. Furniture, art, appliances, electronics, tools, stored items and sentimental pieces, even subscriptions and pet supplies, all need a plan, so raise them with your attorney and agent early in the process.