Navigating a Buyout: How to Keep the Home Without Financial Fallout
- Lisa McNally
- Aug 9, 2025
- 4 min read
For many divorcing couples, the family home is more than just a property—it's a symbol of stability, comfort, and identity. But when the marriage ends, tough decisions must be made. One common scenario is a buyout, where one spouse wants to keep the home and compensate the other for their share of the equity.
As a Certified Divorce Real Estate Expert (CDRE), Certified Divorce Financial Analyst (CDFA®), and licensed broker in New Hampshire and Maine, I guide high-net-worth clients through the complex process of navigating a home buyout with clarity, discretion, and financial protection.
In this post, you'll learn what a home buyout really involves, how to avoid costly mistakes, and how to determine whether keeping the home is the right move for your long-term goals.
What Is a Divorce Home Buyout?
A home buyout during divorce occurs when one spouse wants to retain full ownership of the property. This requires:
Determining the current market value of the home
Calculating the equity available
Negotiating a fair share for the departing spouse
Refinancing the mortgage in the retaining spouse’s name (if applicable)
The buyout process is often framed as an emotional win—but without proper financial analysis and professional guidance, it can turn into a long-term financial burden.
Should You Keep the Home?
Before jumping into a buyout, ask yourself these key questions:
Can you afford the mortgage, taxes, insurance, and maintenance on your own?
Do you qualify to refinance the home in your name alone?
Will keeping the home delay your ability to rebuild financially?
Are you keeping the home out of logic—or emotion?
This is where I bring in my dual credentials as a CDRE and CDFA®. I work with clients to analyze both their real estate and financial positions to help them make sound, strategic decisions that support their future—not just their feelings.
Key Steps in the Home Buyout Process
1. Get a Professional Property Valuation
You can’t negotiate a fair buyout without an accurate home valuation. I conduct detailed market analyses for my clients to determine the home’s fair market value based on real-time local data—not online estimates or tax assessments.
2. Determine the Equity
Equity = Market Value – Mortgage Balance – Any Liens
Once equity is determined, you'll typically divide it based on your divorce agreement (often 50/50, but not always). The spouse staying in the home will need to pay out the other’s share—either in cash or through asset trade-offs.
3. Refinance the Mortgage (If Applicable)
If both names are on the mortgage, the retaining spouse must refinance the home in their name alone to:
Remove the other party from financial liability
Provide any cash-out needed for the buyout
Establish independent ownership and credit responsibility
Many clients assume they can keep the home without a refinance—but lenders will require this, and your divorce decree alone isn’t enough. If refinancing isn’t an option, keeping the home may not be viable.
4. Consider Tax Implications
There are potential capital gains taxes and mortgage interest deductions to be aware of, especially in high-value homes.
According to the IRS, you may only exclude up to $250,000 in capital gains as a single filer—even if you were eligible for $500,000 as a married couple. That difference can be substantial in New Hampshire and Maine’s luxury real estate markets.
5. Weigh Emotional vs. Financial Outcomes
Keeping the home might feel like the “safe” option—especially if children are involved. But it shouldn’t come at the cost of your future financial security. A home is an illiquid asset that requires upkeep, insurance, and long-term planning.
I help clients explore all options—from buyouts to sales to creative co-ownership agreements—to ensure they’re not sacrificing long-term stability for short-term comfort.
Mistakes to Avoid During a Divorce Buyout
Assuming you can afford it without financial analysis
Skipping the refinance or delaying it too long
Underestimating home maintenance and ongoing costs
Agreeing to a buyout amount without an accurate valuation
Failing to get legal documentation of the buyout terms
Letting guilt or pressure from others drive your decision
The right choice is the one that protects your credit, equity, and emotional wellbeing—not just your short-term sense of fairness.
Creative Solutions If a Traditional Buyout Isn’t Feasible
Not every buyout needs to be cash-based. In high-net-worth divorces, we may explore:
Asset offsets (e.g., one spouse keeps the home, the other keeps investments)
Installment buyouts over time
Delayed sale with co-ownership terms
Trust or LLC-based ownership structures for legacy properties
At McNally Group Realty, I collaborate with your attorney, mediator, and financial team to explore all possibilities and help draft clear, enforceable terms.
Key Takeaways
A divorce home buyout allows one spouse to keep the home, but only if it makes financial and legal sense.
Accurate property valuation and equity calculation are essential first steps.
Mortgage refinancing is typically required and must be planned early.
Tax implications and ongoing costs must be factored into the decision.
Emotional ties to the home shouldn’t override financial reality.
Working with a CDRE ensures your buyout is structured to protect your interests long term.
If you're considering a buyout and want to understand your options clearly and objectively, I’m here to help. I’ve guided many divorcing homeowners through this exact process—ensuring that if they keep the home, they do so confidently and without regret.
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
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