Divorce and the Family Home: Keep It, Sell It or Buy Out?

Short answer: In a Florida divorce, spouses can sell the marital home and divide the proceeds, have one spouse buy out the other's share, or delay the sale, often until the children finish school. The right choice depends on whether one spouse can afford the home alone and refinance the mortgage, and on what is best for the children.

For many families in Brevard County, the home is the biggest asset they own and the center of the children's lives. Deciding what happens to it is both a financial and an emotional choice, and it pays to separate the two.

Three main options

  1. Sell and divide. The house is listed, the mortgage and costs of sale are paid, and the net proceeds are divided under the settlement or judgment. It is clean, but it means both spouses move.
  2. Buy out. One spouse keeps the home and pays the other their share of the equity, often by refinancing or by trading other assets such as a retirement account.
  3. Deferred sale. One spouse stays in the home for a set period, often until the youngest child finishes school, and then it is sold and the proceeds divided.

Questions to answer before you decide

Watch the mortgage: If you keep the house but your ex-spouse stays on the mortgage, their credit remains tied to your payments, and yours to theirs if it goes the other way. Most agreements require a refinance within a set time for that reason.

Calculating equity

Equity is usually the fair market value minus the mortgage balance and, if the home will be sold, the costs of sale. Spouses often agree on a value, or hire an appraiser. If the home was owned by one spouse before the marriage, only part of the equity may be marital, so the calculation can be more involved.

Who lives there while the divorce is pending?

Either spouse generally has a right to stay in the home until the court rules otherwise. A judge can award temporary "exclusive use and possession" to one spouse, often the one with the majority of time-sharing, or where there is a safety concern. Moving out without a plan can affect temporary arrangements, so talk with your lawyer first.

The best home decision is one you can still afford a year after the divorce is final.

Florida homestead considerations

Florida's homestead rules protect a primary residence in several ways, including property tax benefits. When ownership changes after a divorce, the homestead exemption and "Save Our Homes" assessment cap may need to be updated with the Brevard County Property Appraiser. It is worth confirming the tax effect before you commit to a buyout.

When to talk to a lawyer

Because a home decision is hard to reverse, it deserves careful numbers. Heather Harris Law helps Brevard County clients weigh asset division options, including the home, retirement accounts and debts, so the agreement works in real life.

Frequently asked questions

Can my spouse force me to sell the house?

If spouses cannot agree, the judge can order the home sold and the proceeds divided, or award it to one spouse with an offsetting payment to the other.

Does the parent with the children get the house?

Not automatically. Courts consider the children's needs, but the home is still an asset that has to be divided fairly, and the parent keeping it usually must buy out the other's share.

Who pays the mortgage during the divorce?

Spouses can agree, or the court can address mortgage payments in a temporary order. Missing payments hurts both spouses' credit, so it should be settled early.

Heather Harris Law, 650 South Courtenay Parkway, Suite 101, Merritt Island, FL 32952. Call (321) 452-7055. Heather Harris spent thirteen years as an Assistant State Attorney before opening her practice and is licensed in Florida and Alabama. This article is general information, not legal advice, and reading it does not create an attorney-client relationship.