In a divorce, who gets the house? Dissolving an intimate partnership often involves emotional and financial challenges and determining who gets the house in a divorce is one of the most contentious issues. This question can be complicated by financial considerations, emotional attachments, and legal entanglements.

Who Gets the House in a Divorce?

Whether you're planning to keep the home, negotiating with your spouse, or considering selling the property, understanding your options can help you make informed decisions during this challenging time.

How to Keep the House in a Divorce

If you and your spouse agree that one person should keep the home, there are a few potential paths forward. Retaining ownership can offer stability, especially if children are involved, or if one party has a strong emotional connection to the property. 

Refinancing the Mortgage

If you wish to be the one who gets the house, refinancing the mortgage in your name alone is often necessary. This ensures that your ex-spouse is no longer financially tied to the property. To refinance, you'll need to demonstrate sufficient income and creditworthiness to qualify for the loan.

Buying Out Your Spouse

Another common approach is a buyout, in which the spouse who wants to keep the house compensates the other for their share of the equity. The value of the buyout depends on the home's current market value minus any outstanding mortgage balance.

Offsetting Assets

In some cases, you can offset your spouse's share of the home equity by giving up other marital assets. For instance, you might forgo a larger portion of retirement accounts or other property in exchange for sole ownership of the home.

Key Points to Consider:
•    Can you afford mortgage payments and maintenance costs alone?
•    Are there other debts tied to the home, such as liens or taxes?
•    Is the property's value stable or likely to change significantly?

Options if Your Spouse Wants to Keep the Home

If your spouse wants to keep the house, the process will likely involve similar considerations, but it's important to ensure your financial interests are protected.

Require a Buyout

Ensure your spouse compensates you for your share of the home's equity. The buyout terms should be clear, and the transaction should be documented to avoid disputes later.

Remove Your Name from the Mortgage

To protect your financial future, remove your name from the mortgage. If your ex fails to make payments and your name remains on the loan, it could negatively impact your credit.

Evaluate Tax Implications

Selling your share of the home may have tax consequences, especially if the property has appreciated significantly. Consulting a financial advisor or attorney can help you navigate these complexities.

What if Neither Spouse Agrees on Who Gets the House?

In some cases, neither spouse wants—or can afford—to keep the home, or both want to retain it. When you cannot reconcile divorce and splitting the house, selling the property and dividing the proceeds is often the best solution.

Selling the Home

Selling the home provides a clean financial break and allows both parties to move forward without the burden of shared ownership. Once the property sells, the net proceeds (after paying off the mortgage and selling expenses) are typically divided according to the divorce agreement.

Mediating or Litigating the Dispute

If selling isn't feasible, mediation or court intervention may be necessary. A mediator can help negotiate an agreement, while a judge will make the final decision if mediation fails.

Other Considerations in Disputes
•    The financial stability of each party
•    The best interests of any children involved
•    Contributions made by each spouse toward the home

Additional Details to Consider

Joint Ownership Post-Divorce

In rare cases, ex-spouses may agree to maintain joint ownership of the home temporarily. This arrangement might make sense if children are finishing school or if selling immediately isn't financially advantageous. However, this option requires clear agreements about responsibilities and timelines.

Timing the Sale

If selling is part of the plan, market timing can make a significant difference. It's wise to work with a trusted real estate agent to maximize your home's value.

Legal and Emotional Factors

It's important to consider the emotional toll of retaining or selling the home. For some, the house may represent painful memories, making a fresh start more appealing.

Pros and Cons of Each Option

As with any situation, there are things to keep in mind when deciding in a divorce who gets the house.

Keeping the Home

•    Pros: Stability, emotional attachment, potential future value.
•    Cons: Financial strain, ongoing maintenance costs, tax implications.

Selling the Home
•    Pros: Clean financial break, opportunity to divide proceeds equally, less emotional baggage.
•    Cons: Market fluctuations, relocation stress, loss of sentimental value.

Joint Ownership
•    Pros: Temporary stability, potential to sell later at a better price.
•    Cons: Ongoing financial entanglement, potential for disputes.

Steps to Determine the Best Option

If you're unsure how to handle your home during a divorce, follow these steps:
•    Assess Finances: Can you afford to keep the home on a single income?
•    Consult Professionals: Work with attorneys, financial advisors, and real estate agents to explore options.
•    Communicate Clearly: Open discussions with your spouse can help reduce conflict and find mutually beneficial solutions.
•    Plan for the Future: Consider your long-term financial stability and emotional well-being.

How Wills and Trusts Tie In

Divorce is a critical time to update your estate planning documents. If you're keeping the home, ensure your will or trust reflects the change in ownership. Similarly, if you're selling the property, update your beneficiaries to align with your new financial situation.

At Bruce Galloway Law, we understand the interconnected nature of divorce and estate planning. Our attorneys can assist in revising your legal documents to protect your interests and secure your legacy.

Let Bruce Galloway Law Help You

Determining who gets what in a divorce, including determining who gets the house, is rarely simple. At Bruce Galloway Law, our experienced Missouri family law attorneys provide the guidance and support you need to navigate these difficult decisions.

If you have questions about what happens to the house in a divorce, contact us today and learn how we can help you protect your rights and secure your future.