Selling or keeping the house in a divorce

If one of you keeps the house, what does it take?

Enter your numbers to estimate the equity buyout, the new loan and the monthly payment for the spouse who stays, then compare it with selling. Every figure is an input you can change.

The house

Estimated home value

Mortgage balanceRemaining balance on the loan, including any home equity line.

Share of the equity the keeping spouse is entitled toThis is set by your agreement or the court, not by this tool. 50 is only a starting point.

Current monthly payment (principal and interest)Optional. Used to show how the payment changes after a new loan.

The new loan for the spouse who stays

Interest rate on a new loanUse a current quote from a lender. If the current mortgage has a lower rate, a new loan usually costs more each month.

Loan term, years

yrs

Monthly property taxes, insurance and any HOA dues

Keeping spouse's gross monthly incomeInclude only income a lender would count. Optional.

Other monthly debt paymentsCar loans, student loans, credit card minimums. Optional.

New loan closing costs, % of the new loanPaid at closing. Ask your lender for an estimate.

If you sell instead

Selling costs, % of sale priceAgent compensation, title and closing fees combined. Edit this to match what you agree to.

Estimated buyout the keeping spouse pays

The equity
Home value
Mortgage balance
Equity

Keep the house
New loan needed (mortgage plus buyout)
Loan as a share of home value
New principal and interest
Taxes, insurance and dues
Estimated monthly housing cost
Cash for new loan closing costs

If you sell instead
Sale price
Selling costs
Mortgage payoff
Net to split
Keeping spouse's share of that
Other spouse's share

What this does not show

Whether you qualify

Lenders look at credit, income history, debts and how they treat spousal support and child support. The percentages above are a rough check, not an approval. Talk to a lender before you commit to keeping the house.

The loan rules for a buyout

Loans that pay out a spouse often have limits on how much of the home's value you can borrow, and a lender may treat a court-ordered buyout differently from an ordinary cash-out loan. Ask each lender how it handles that.

How the equity should be split

That is decided in your settlement or by the court, and it can depend on more than a flat percentage. Your attorney makes that call. The number in the first box is only an input.

Taxes and timing

The tax treatment of a buyout or a sale, and how the order of events affects it, depends on your situation. Check with a tax professional and your attorney before anything is signed.

Want the full picture before you decide?

My free guide walks through your real options when a divorce involves a house, including the mortgage detail most people miss and what to settle before the house goes on the market. All I need is an email address.

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