The Mortgage Divorce Buyout Process Explained

A mortgage divorce buyout is something that no one wants to have to deal with. However, if you are married and you have a house together, you will have to go through a complicated process if you get a divorce. Here is the mortgage divorce buyout process explained.

Determine Who Is Staying

In order to begin this process, you must first decide which spouse is going to stay in the property. The person that is going to live in the house is going to have to buyout the equity of the other spouse. Sometimes, the married couple will be able to decide who is going to live in the house. In many cases, the judge in the divorce court will have to make a decision.

Determine Value

The next thing that you will need to do is determine the value of the property. You will need to know the value of the home in order to know what to pay your spouse. There are a few different ways that you could potentially determine the value of the house. One of the easiest ways to do this is to work with a real estate agent. They can run a comparative market analysis on your property in order to determine what it would be able to sell for in today's market.

Another option that you might want to consider is hiring a real estate appraiser. The real estate appraiser will complete a detailed report on the property. They will calculate the resale value by comparing the property to other homes. Using a real estate appraiser is the most effective option. Although you will have to pay the appraiser for their services, you will be able to use the appraisal once you go to a lender.

Calculating Buyout Amount

After you know the value of the house, you can calculate the amount of the buyout for your spouse. Take the value of the house and subtract the payoff amount for your mortgage. Once you have this value, that will represent the amount of equity that you have as a couple. Take that number and divide it by two in order to determine how much money you should pay your spouse for their part of the equity.


In order to come up with the money to pay your spouse, you should refinance the mortgage. Even if you have enough money in savings to pay your spouse for their portion of the equity, you should still refinance the mortgage. This way, you will be able to remove your spouse from the current mortgage and the deed of the home.

You will need to qualify for the loan on your own. This means that your income will have to be sufficient enough to support the mortgage payment and you will have to have a good credit history. Once the lender pays you, you can pay off the existing mortgage balance and then give your spouse their part of the equity.