Should You Sell the House Before or After the Divorce is Final?
- Lisa McNally
- Jul 3
- 5 min read
For many divorcing couples, the marital home is the most significant asset—and the most emotionally charged one. One of the most common questions I get as a Certified Divorce Real Estate Expert (CDRE) is: Should we sell the house before or after the divorce is final?
The answer isn't always straightforward. The right decision depends on your financial circumstances, emotional readiness, legal strategy, and long-term goals. In this blog, I’ll walk you through the pros and cons of each option so you can make an informed, empowered decision. I work with high-net-worth individuals and couples throughout New Hampshire and Maine, and I tailor every real estate strategy to meet the unique needs of divorce clients.
Why the Timing of the Sale Matters in Divorce
The timing of your home sale can significantly impact:
Your divorce negotiations
Tax liabilities and capital gains exposure
Mortgage qualification post-divorce
Credit scores and financial independence
Emotional closure and family dynamics
As a CDRE and a Certified Divorce Financial Analyst (CDFA®), I bring both real estate and financial insight to your divorce strategy. Whether you sell before or after the final decree, it’s essential to approach the process with guidance, clarity, and a customized plan.
Selling the Home Before the Divorce Is Final
Many couples choose to sell the house prior to finalizing the divorce. Here's why that might work for you:
Benefits of Selling Before the Divorce Is Final
Simplifies asset division. Selling early allows the proceeds to be split during mediation or legal proceedings, streamlining the property settlement.
Joint ownership still exists. As both spouses are typically still on the title, you can jointly make decisions about the sale and pricing.
Potential for reduced tax liability. Married couples may be eligible for up to $500,000 in capital gains exclusion if they sell their primary residence while still filing jointly. Learn more at IRS.gov.
Avoids future conflict. Eliminates the emotional and logistical burden of dealing with the house after the divorce.
Potential Drawbacks
Requires cooperation. You’ll need to collaborate on decisions like pricing, staging, offers, and move-out dates—potentially during an emotionally tense time.
Impacts custody or living arrangements. Selling before the divorce may require new housing for one or both parties, possibly affecting children’s routines.
Delays divorce finalization if not done efficiently. If the sale takes time, it may hold up the rest of your divorce agreement.
Selling the Home After the Divorce Is Final
Other couples wait until after the divorce is finalized to sell the home. This can work well if there’s a clearly defined plan in your divorce agreement.
Benefits of Selling After the Divorce Is Final
Gives time for emotional adjustment. One party may be granted exclusive use of the home for a defined period (e.g., until children graduate), offering stability during transition.
Avoids rushed decisions. Postponing the sale can lead to more rational, less emotionally reactive decision-making.
May benefit from market timing. In luxury real estate markets like the NH Seacoast or Southern Maine coast, seasonal trends can impact sale price and buyer interest.
Potential Drawbacks
Complicates ownership and responsibility. If both names remain on the mortgage, both parties remain financially liable—regardless of who lives there.
Future sale may trigger more capital gains tax. Post-divorce, each party may only be eligible for a $250,000 capital gains exclusion on a primary residence.
Increases the risk of post-divorce disputes. Unless clearly defined in the divorce decree, disagreements over sale timing, pricing, or repairs can arise.
Key Considerations for Your Situation
Are You Keeping the Home?
If one spouse plans to keep the home, it’s crucial to determine:
If they qualify to refinance in their name alone
If the equity can be used to buy out the other spouse
Whether they can afford the ongoing expenses solo
If you're unsure whether keeping the home is financially feasible, schedule a private consultation. I’ll help you run the numbers and explore sustainable options.
Do You Have Minor Children?
Courts and mediators often prioritize stability for minor children. Selling too soon may disrupt schooling or custody plans. On the flip side, selling later may delay much-needed financial closure.
Are You Concerned About Credit and Mortgage Qualification?
If your name remains on the mortgage, your ability to qualify for a new loan may be compromised. This can delay your ability to purchase a new home or start over financially. I work with a trusted network of divorce-lending specialists who can pre-qualify you early in the process.
How a Certified Divorce Real Estate Expert (CDRE) Supports You
Working with a standard real estate agent during a divorce is risky. You need a neutral, divorce-trained professional who understands the legal, financial, and emotional complexities involved.
As a CDRE and licensed real estate broker in both New Hampshire and Maine, I offer:
Neutral, court-friendly representation
Property valuations aligned with divorce needs
Strategic guidance on timing, pricing, and sale preparation
Connections to trusted divorce attorneys, mediators, and financial professionals
Luxury marketing services for high-end homes
National and global relocation services through eXp Realty, LLC
Schedule a free consultation to Learn more about my divorce real estate services HERE
Real Estate Timing Pitfalls to Avoid in Divorce
Waiting too long to involve a real estate expert
Assuming you or your spouse can afford the home without verification
Ignoring the impact of tax laws and capital gains
Trusting “Zillow value” instead of an accurate market analysis
Letting emotions override sound financial planning
I’ve worked with many divorcing couples who came to me too late—after one party moved out, equity was lost, or conflict escalated. Don't let that happen to you.
Key Takeaways
Selling before divorce can simplify negotiations and reduce tax liability, but requires cooperation.
Selling after divorce may offer emotional space and better timing but can bring legal and financial complications.
Your home sale strategy should align with your divorce timeline, financial needs, and long-term goals.
Mortgage liability and capital gains tax should be factored into your decision.
A Certified Divorce Real Estate Expert (CDRE) provides essential expertise to guide you through it all.
Your home isn’t just an asset—it’s part of your story. If you’re facing divorce and need expert guidance on what to do with your home, let’s talk. I offer confidential consultations designed to bring clarity, reduce conflict, and create a plan that honors both your financial interests and emotional needs.
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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