What Happens to the House During Divorce? A Real Estate Expert's Guide
- Lisa McNally
- Jul 3
- 4 min read
Navigating the fate of your home during divorce is one of the most emotional and financially significant decisions you'll make. As a Certified Divorce Real Estate Expert (CDRE), I help divorcing couples in New Hampshire and Maine make confident, informed decisions about their real estate—especially their marital home. Whether you’re the titled owner, the spouse in residence, or unsure of your rights, this guide will walk you through your options, outline critical legal and financial considerations, and explain how working with an expert can reduce conflict and financial mistakes.
Why the House Matters So Much in Divorce
Your home is more than just an asset—it's part of your lifestyle, your family’s history, and for many, a symbol of security. In divorce, it often becomes a point of contention, especially in high-net-worth cases involving luxury properties, secondary homes, or investment real estate. The decision about what happens to the house can impact everything from custody arrangements to future financial stability.
Key Questions You Must Answer
Before making any decisions about your home, both parties should understand the following:
Who owns the home legally and financially?
Is there equity in the home?
Are both parties on the mortgage or title?
Can one party afford to keep the home post-divorce?
Would selling the home provide a cleaner financial break?
These questions form the foundation of every real estate consultation I conduct at McNally Group Realty. As both a luxury real estate broker and CDRE, I evaluate the financial and emotional layers to help you make the best choice.
Common Scenarios: What Could Happen to the House?
1. One Spouse Buys Out the Other
This option works best when:
One party wants to keep the home.
That party qualifies for refinancing in their name alone.
There is enough equity to offer a fair buyout to the other spouse.
Tip: Be cautious about assumptions. Just because a spouse “wants” the home doesn’t mean they can afford to keep it. As a Certified Divorce Financial Analyst (CDFA®), I can help determine if this scenario is viable.
2. Sell the Home and Split the Proceeds
Often the cleanest solution, selling the home can:
Avoid prolonged financial entanglement.
Generate cash to be split equitably.
Create a natural fresh start for both parties.
Luxury homes may require longer market exposure. I offer specialized marketing and staging strategies to protect your property’s value and reduce time on market.
3. Co-Ownership After Divorce
Some couples choose to:
Continue owning the home together for a defined period.
Delay the sale until children graduate or the market improves.
While this may work in theory, it requires strong legal agreements and clear boundaries. This scenario is complex and often risky. I always recommend working with both your attorney and a real estate professional experienced in divorce sales.
Understanding the Legal Landscape
Real estate decisions in divorce are legally binding. While I don’t provide legal advice, I do work closely with attorneys and mediators to ensure your property division aligns with your divorce decree.
In New Hampshire and Maine, both equitable distribution states, property is divided fairly—not always equally. That means the court considers factors such as:
Duration of the marriage
Contributions to the home (financial and non-financial)
Earning potential of each spouse
Custody arrangements (if applicable)
Mortgage and Title: What You May Not Know
One of the most overlooked—and dangerous—mistakes divorcing couples make is assuming that removing a spouse from the title also removes them from the mortgage. It doesn’t.
Only a new mortgage (refinance) can eliminate financial responsibility. If both parties remain on the loan but only one lives in the house, the other’s credit and liability are still at risk.
This is where my dual credentials as a CDRE and CDFA® are critical. I not only help with the sale or refinance strategy, but I also help you understand long-term financial consequences.
Real Estate Mistakes to Avoid During Divorce
Selling to a friend or family member below market value
Trusting Zillow for property valuation
Listing with an agent unfamiliar with divorce dynamics
Assuming your attorney or mediator is handling the real estate properly
Making emotional decisions without financial planning
You need a divorce-trained real estate professional who understands both legal sensitivities and market performance. With McNally Group Realty, you don’t just get a broker—you get a strategic partner.
Why Choose a Certified Divorce Real Estate Expert (CDRE)?
As a CDRE, I’ve completed specialized training in divorce real estate protocols, legal language, court communication, and neutrality. My role is to:
Maintain neutrality when working with both spouses
Provide accurate, court-ready property valuations
Collaborate with legal and financial professionals
Protect the asset from devaluation during divorce
Advocate for a smooth, respectful resolution
How I Support Divorcing Homeowners
At McNally Group Realty, I offer tailored services for divorcing couples, including:
Private consultations to assess your home’s value and potential options
Collaborative sale representation that avoids further conflict
Referral network access through eXp for national/international moves
Luxury marketing services for high-end properties
Divorce-focused real estate insights in all consultations
Whether you’re in Portsmouth, Dover, the Seacoast, or across Southern Maine, I’ll help you navigate this decision with clarity, confidence, and discretion.
Key Takeaways
Your home is a major asset—both financially and emotionally—during divorce.
Selling, buying out, or co-owning are the three primary options.
Mortgage and title are separate; both need strategic handling.
Mistakes during this process can cost thousands or delay your settlement.
A Certified Divorce Real Estate Expert (CDRE) brings legal and emotional intelligence to the transaction.
Specialized guidance reduces conflict and preserves value.
If you’re facing divorce and unsure what to do about your home, you don’t have to figure it out alone. I’ve helped many individuals and couples just like you take control of the process with clarity and peace of mind. Let's explore your best options—confidentially and without pressure.
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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