What to Do with House in Divorce: Your Complete Options Guide

Understanding Your Options

When going through divorce, deciding what to do with your house is one of the most important decisions you'll make. You have several options, each with different financial, legal, and emotional implications. This guide explains all your options so you can make informed decisions.

Option 1: Sell the House and Split Proceeds

How It Works

Both spouses agree to sell the house, and proceeds are divided according to your agreement or court order. In Nevada, as a community property state, proceeds are typically divided 50/50 unless otherwise specified.

Pros

• Clean financial break
• Both parties get cash to start fresh
• Eliminates ongoing financial entanglements
• No ongoing mortgage responsibility
• Simplest option when both agree

Cons

• Requires both spouses to agree
• Both must move out
• May have emotional difficulty letting go
• Market timing may not be ideal

Learn more: Selling Home During Divorce

Option 2: One Spouse Buys Out the Other

How It Works

One spouse keeps the house by buying out the other spouse's share. This involves calculating the buyout amount (typically half the equity) and refinancing the mortgage to remove the other spouse.

Pros

• One spouse keeps the home
• Children can stay in same home/school
• Other spouse gets cash for their share
• Clean financial break for removed spouse

Cons

• Keeping spouse must qualify for refinancing alone
• May need cash-out refinance to pay buyout
• Can be financially challenging
• Requires accurate valuation

Learn more: Divorce Buyout Options

Option 3: Co-Own Temporarily (Bird Nesting)

How It Works

Both spouses continue to co-own the house temporarily, often to allow children to finish school or wait for better market conditions. Clear agreements about expenses, maintenance, and eventual sale are essential.

Pros

• Children can stay in same home
• Can wait for better market conditions
• More time to make decisions
• Can delay major life changes

Cons

• Ongoing financial entanglements
• Both remain responsible for mortgage
• Requires clear agreements to prevent conflicts
• Can delay moving forward
• Market risk while waiting

Option 4: Refinance to Remove One Spouse

How It Works

If one spouse keeps the house, they refinance the mortgage to remove the other spouse. This protects the removed spouse's credit and eliminates their liability.

Pros

• Removed spouse is protected
• Clean financial break
• Keeping spouse has full ownership

Cons

• Keeping spouse must qualify alone
• May not be possible if income is insufficient
• Refinancing costs involved

Learn more: Refinancing After Divorce

Option 5: Deferred Sale

How It Works

A deferred sale is an agreement between spouses or a court order to delay selling the family home for a period. This may make sense if you are waiting for the market to improve or if your child is still a minor and you do not want to uproot them from school. If you defer the sale, you must agree in writing on who pays the mortgage, taxes, insurance, and maintenance until the home sells.

When This Makes Sense

• Waiting for better market conditions
• Child is a minor and staying in the same school matters
• One or both spouses need time to secure new housing

Learn more: Real Estate Guide for Divorcing Couples

Option 6: Court-Ordered Sale

How It Works

If spouses can't agree, the court can order the sale. The court may appoint a neutral real estate agent to handle the transaction.

When This Happens

• Spouses can't reach agreement
• One spouse refuses to sell
• Financial hardship requires sale
• Court determines sale is in best interests

Learn more: Court-Ordered Home Sale

Factors to Consider

Financial Factors

• Home value and equity position
• Ability to afford mortgage alone
• Need for cash from sale
• Tax implications of each option
• Refinancing qualification

Emotional Factors

• Attachment to the home
• Desire for clean break
• Emotional readiness to sell
• Ability to work together

Practical Factors

• Children's needs and stability
• School districts and neighborhoods
• Market conditions
• Timeline needs
• Future plans

Making the Decision

To make the best decision:

1. Get accurate valuation: Know your home's value and equity
2. Understand all options: Review pros and cons of each
3. Consider financial implications: Calculate costs and benefits
4. Consider emotional factors: Acknowledge emotional aspects
5. Consult professionals: Talk to attorney, real estate specialist, financial advisor
6. Make informed decision: Choose option that makes most sense

Get Expert Guidance

Deciding what to do with your house is complex and depends on your specific situation. Dr. Jan Duffy helps you understand all your options, evaluate each one, and make informed decisions that support your overall divorce resolution.

Need Help Deciding? Schedule a confidential consultation with Dr. Jan Duffy to discuss your situation and explore all your options. Schedule Your Consultation

Related Resources

• Property Division Guide
• Buyout Options
• Selling Home During Divorce
• Get Your Home Valuation