Journey 03
We're Deciding What Happens to the Home
This is often the single largest decision in a divorce, and rarely only a financial one. The goal here is to understand each path before committing to one.
What to understand
What tends to matter at this stage
Keeping the home and affording the home are two questions
Whether a lender may allow one person to qualify on their own is a separate question from whether the payment, maintenance, taxes and insurance fit comfortably into a single-income household.
Deed and mortgage are not the same thing
Ownership and loan liability are separate. Changing one does not automatically change the other, which is one of the most common misunderstandings during divorce.
Equity is a number with conditions attached
Available equity depends on value, loan balance, costs, timing and how a buyout would be structured — not simply value minus balance.
Both households need somewhere to live
A decision that works for one person's housing may limit the other's. Looking at both sides tends to produce more durable agreements.
Questions to consider
Worth asking at this point
- If one person keeps the home, can they realistically qualify on their own?
- What would the monthly cost of ownership look like on one income?
- If sold, what would each person's next housing look like — and when?
- How would a buyout be funded?
- What timing constraints exist for children, schools or work?
Who might help
Professionals often involved here
- Certified Divorce Lending Professional
- Real estate professional
- Family law attorney
- Financial advisor
The right professional at the right time can make a major difference.
What you can do next
A calm next step
This page is general education, not legal, tax, financial or individualized mortgage advice. Guidelines change and every situation is different — please review your own circumstances with appropriately licensed professionals.
Other starting points