Exploring Your Options for the Marital Home in Divorce: Sell, Buyout, or Deferred Sale
Exploring your options.
As a real estate agent specializing in divorce transactions in Illinois, I’ve helped many couples navigate one of the toughest decisions: what to do with the family home. Every situation is truly unique. Factors like your finances, the housing market, emotional attachments, and family needs all play a role.
Please remember: I’m a Realtor®, not an attorney. The ideas below are from my experience guiding clients. Always consult your divorce attorney and financial advisor for advice tailored to your specific circumstances.
Here are the three most common paths I see couples take, along with practical pros, cons, and real estate considerations.
Option 1: Sell the Home and Split the Proceeds
This is the most frequent choice, especially when neither spouse can (or wants to) afford the home alone.
From a real estate perspective:
I do a Comparative Market Analysis (CMA) to determine current value.
Subtract the mortgage balance and selling costs to estimate net proceeds.
As your neutral agent, I market the home fairly, handle showings, and negotiate offers to maximize the sale price for both of you.
Pros:
Clean financial break—no ongoing ties to the mortgage or property.
Cash in hand to start fresh (often split according to your settlement).
Avoids one spouse struggling with upkeep or payments alone.
Cons:
Emotional challenge of leaving the family home.
Potential capital gains taxes.
Current market timing matters.
This option often feels like the fairest and simplest when emotions or finances make keeping the home difficult.
Option 2: One Spouse Buys Out the Other
One spouse keeps the home by “buying” the other’s share of the equity.
Real estate side of the process:
Start with a professional appraisal to determine fair market value (critical for agreement).
Calculate equity: Home value minus remaining mortgage.
The keeping spouse pays the other their share often by refinancing the mortgage in their name alone (pulling cash out for the buyout).
I help coordinate the appraisal and connect you with divorce-friendly lenders who understand these refinances.
Pros:
Continuity for children (staying in the same schools/neighborhood).
The keeping spouse builds future equity alone.
Avoids selling costs and market timing.
Cons:
The keeping spouse must qualify for the new mortgage solo (based on their income/credit).
Refinancing can mean higher interest rates or closing costs.
If equity is high, the buyout amount might be challenging without other assets to offset.
This works well when one spouse has stronger finances post divorce and wants stability.
Option 3: Deferred (Delayed) Sale
You keep the home for now and agree to sell later.
How it plays out in real estate:
One spouse lives in the home and handles day-to-day costs.
Both remain on the title/mortgage until the future sale date.
We might revisit value later with a new CMA when it’s time to list.
Pros:
Stability in the home and routine.
Potential to benefit from future appreciation.
Gives time to improve finances or wait for a better market.
Cons:
You stay financially tied (both responsible).
Ongoing coordination needed for maintenance and payments.
Future market is unpredictable as value could go up or down.
This option prioritizes well-being but requires strong communication (or clear rules set by attorneys).
Which Option Is Right for You?
There’s no one size fits all answer. Some couples sell quickly for a fresh start; others choose a buyout or delay to keep stability. I’ve seen all three lead to positive outcomes when both parties feel informed and respected.
As your neutral agent, my role is to provide clear market data, realistic timelines, and impartial guidance so you can make the choice that fits your unique situation.
If you’re in Illinois and wondering about your home’s current value or these options, reach out for a confidential, no-obligation chat. I’m here to help both of you move forward with as little stress as possible.
Jillian Prodehl | Century 21 Integra | 630-809-8772 | jillianprodehl@gmail.com
