Divorce & Real Estate

Divorce creates hard decisions around property. Whether you're keeping the home, buying out a spouse, or selling fast — each option has financial and structural implications that are worth understanding clearly.

The Three Common Paths

• Sell and split proceeds: Simplest option. Both parties walk away. Tax implications depend on how long you owned the property and gain amount.
• One spouse buys out the other: Requires refinancing into a single-borrower loan. The buying spouse needs to qualify on their own income.
• Defer the sale: Sometimes parties agree to hold the property temporarily. This adds complexity and requires a clear agreement on who pays what.

Buyout Financing

If one spouse is keeping the home, they'll typically need to refinance to remove the other party from the mortgage and title. The new loan needs to be large enough to pay off the existing mortgage plus the equity owed to the departing spouse.

Important: lenders treat this as a cash-out refinance if the equity payout exceeds a threshold. Rates and LTV limits differ from a standard rate-and-term refi.

Investment Properties in Divorce

• Rentals, flips, or business properties need valuation — not just a Zillow estimate
• One party keeping an investment property may need to refinance into their name alone
• If the property has depreciation recapture, selling has different tax consequences than keeping
• 1031 exchanges can sometimes be used to defer taxes on a forced sale into new investment property

What I Can Help With

• Evaluating whether a buyout is financially feasible
• Understanding refinance options and what you can qualify for post-divorce
• Thinking through the sell vs. keep decision with real numbers
• Connecting you to the right professionals (attorney, title, lender)

Going through a divorce with property involved? Let's figure out your options.