7 Mistakes to Avoid When Selling a Home During Divorce

Selling your home is never easy—but selling it during a divorce can be emotionally draining, legally complex, and financially risky. As a Certified Divorce Real Estate Expert (CDRE), I’ve worked with many divorcing couples throughout New Hampshire and Maine to help them navigate the sale of their home with clarity and confidence.

When luxury real estate, high-value assets, or children are involved, the stakes are even higher. If you’re considering or in the process of selling your home during divorce, avoid these seven common (but costly) mistakes. Understanding what to do—and what not to do—can save you time, money, and unnecessary conflict.

Why Divorce Home Sales Require Special Handling

Divorce is more than a legal separation—it’s a massive financial restructuring. And your home is likely one of your largest shared assets. From ownership rights to tax exposure to post-divorce lending implications, there are many moving parts.

That's why it’s critical to work with a divorce-trained real estate professional who understands the nuances of property division, legal language, emotional dynamics, and financial impacts.

At McNally Group Realty, I combine my expertise as a CDRE, Certified Divorce Financial Analyst (CDFA®), and licensed real estate broker in both NH and ME to guide clients through these complex real estate transitions.

Mistake #1: Choosing a Standard Real Estate Agent Instead of a CDRE

Selling a home during divorce is not the same as a traditional real estate transaction. When you work with a typical agent who lacks divorce-specific training, you risk:

• Miscommunication between spouses

• Legal missteps in documentation

• Biased representation

• Delays or deals falling through due to poor coordination
  

As a Certified Divorce Real Estate Expert (CDRE), I’ve been trained to remain neutral, protect the integrity of the asset, and communicate effectively with both parties, attorneys, and the court when needed.

Mistake #2: Not Establishing Clear Agreements in Advance

Before you list the home, it's critical to define:

• Who is living in the home and for how long

• How showings will be handled

• How offers will be reviewed and accepted

• Who is responsible for upkeep and staging

• How net proceeds will be split or held
  

Failing to establish these details in writing can lead to unnecessary conflict, sabotaged sales, or post-sale litigation.

I always recommend including a “Real Property Addendum” in the divorce decree or mediated agreement that outlines these points clearly.

Mistake #3: Letting Emotions Drive the Process

Selling the family home during divorce can trigger grief, guilt, fear, or anger. When decisions are made emotionally rather than strategically, the results can be disastrous:

• Rejecting fair market offers

• Sabotaging showings or staging

• Refusing to sign paperwork

• Delaying the sale out of spite
  

My role is to serve as a calm, neutral professional who guides both parties through the process with respect and clarity. This helps reduce tension and keeps the transaction focused on facts—not feelings.

Mistake #4: Mispricing the Property

Overpricing the home in hopes of gaining a financial edge rarely works—and it often backfires by reducing buyer interest and extending time on market.

On the flip side, underpricing to “just be done with it” can mean leaving tens (or hundreds) of thousands of dollars on the table, especially in luxury markets.

With years of experience in New Hampshire and Maine's high-end real estate markets, I provide strategic pricing analyses based on current data, not emotion or online estimates.

Mistake #5: Ignoring Capital Gains and Tax Implications

If your home has appreciated significantly, you may face capital gains taxes upon sale—especially if the home is sold after the divorce is finalized and you can no longer file jointly.

I collaborate with CPAs, divorce attorneys, and financial planners to help clients:

• Estimate capital gains exposure

• Understand filing status implications

• Time the sale strategically to reduce tax burden

Proper timing can mean the difference between keeping and losing a large portion of your proceeds.

Mistake #6: Failing to Address the Mortgage Properly

This is one of the most critical—and misunderstood—issues in divorce real estate. Removing a spouse from the title does not remove them from mortgage responsibility. Only a refinance can do that.

If both spouses remain on the mortgage after the divorce:

• Both are legally and financially liable

• Missed payments can damage both credit scores

• One party’s ability to buy a new home can be affected
  

As both a CDFA® and real estate broker, I help clients determine whether one spouse can refinance, how to structure a buyout, or whether selling is the smartest option.

Mistake #7: Not Timing the Sale Strategically

Rushing the sale can cause you to miss peak market windows. Delaying too long can increase risk and emotional stress. The best time to sell is based on a number of personalized factors:

• Divorce timeline and settlement terms

• Mortgage conditions

• Local market activity (especially for luxury homes)

• Tax calendar and filing deadlines

• School year and family logistics
  

With my expertise in New Hampshire and Maine’s seasonal and luxury real estate trends, I help you make smart timing decisions to protect your equity and peace of mind.

Key Takeaways

• Divorce home sales require special expertise and should never be handled like a standard listing.
  

• Failing to plan ahead, manage emotions, or address legal/mortgage issues can create costly setbacks.
  

• A Certified Divorce Real Estate Expert (CDRE) ensures neutrality, protects your asset, and supports a smoother process.
  

• Pricing, taxes, timing, and documentation must all be handled with strategic care.
  

• Real estate and divorce are both emotional—your agent shouldn’t be.
  

Selling your home during divorce doesn’t have to be a nightmare. With the right strategy, expert support, and respectful communication, it can be a step toward closure, peace, and financial freedom.

Let’s talk about your specific situation and create a personalized plan that supports your goals and protects your interests—confidentially and without pressure.

Schedule Your Private Consultation Here

Lisa McNally

Certified Divorce Coach | Certified Divorce Mediator

Certified Divorce Financial Analyst (CDFA®) | Certified Divorce Real Estate Expert (CDRE)

Licensed Real Estate Broker (NH & ME)

Founder, Optimal Divorce Solutions

www.OptimalDivorceSolutions.comSchedule a Free Consultation