Divorce Home Buyout Calculator
Calculate how much it costs to buy out your spouse's share of the marital home during divorce.
A divorce buyout is when one spouse keeps the family home by paying the other spouse their share of the home equity. The buyout amount equals the departing spouse's percentage of the net equity (home value minus mortgage balance minus estimated selling costs). This calculator helps you determine the exact buyout cost.
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Based on recent appraisal or market estimate
$
Outstanding loan balance on the property
%
Usually 50% in community property states
%
Agent commissions + fees (typically 5-8%)
$
Value of improvements made with separate funds
$
Costs to refinance mortgage (typically $2K-$5K)
Buyout Estimate
Home Value$350,000
Mortgage Balance- $180,000
Gross Equity$170,000
Selling Costs (6%)- $21,000
Buyer Improvements Credit$0
Adjusted Net Equity$149,000
Buyout Amount (50% of adjusted equity)
$74,500
Total Cost (+ closing)
$77,500
Savings vs. Selling
$18,000
Formalize Your Buyout in a Settlement Agreement
Include the buyout terms in your legally binding divorce settlement agreement. Create yours online with a guided questionnaire.
Create Settlement Agreement →✓ State-Specific✓ Lawyer-Reviewed✓ Instant Download
How a Divorce Home Buyout Works
In a divorce home buyout, one spouse keeps the family home by paying the other spouse their share of the home equity. The buying spouse typically refinances the mortgage in their name only, and the buyout amount is either paid in cash, offset against other marital assets, or financed into the new mortgage.
Steps to Complete a Home Buyout
- Get a professional appraisal: Determine the current fair market value
- Calculate net equity: Subtract mortgage balance and estimated selling costs
- Determine the buyout amount: Multiply net equity by departing spouse's share
- Refinance the mortgage: Remove the departing spouse from the loan
- Transfer the deed: File a quitclaim deed transferring ownership
- Document in settlement agreement: Include all buyout terms in your divorce agreement
Buyout vs. Selling the Home
🏠 Buying Out Your Spouse
- ✓ Keep living in the home
- ✓ Stability for children
- ✓ Avoid selling costs (5-8%)
- ✓ No capital gains tax event
- ✕ Must qualify for refinance alone
- ✕ Need cash or asset offset for buyout
🏷️ Selling the Home
- ✓ Clean break for both parties
- ✓ No refinancing needed
- ✓ Cash payout for both spouses
- ✕ 5-8% selling costs
- ✕ Must relocate
- ✕ Market timing risk