Outlining the Mortgage Divorce Buyout Process

The divorce buyout process is something that most couples think will never be an issue for them. The truth is, a large percentage of married couples will have to deal with this process at some point. Here are the basics of the mortgage divorce buyout process and how it works.


When working on a mortgage divorce buyout, there are several issues that will need to be addressed. You will first need to decide which spouse is going to live in the house and which one will move out. Sometimes, one spouse will voluntarily leave the premises. Other times, both spouses want to keep the house and are willing to fight for it. Another issue that you will have to work on is the price of the buyout. Once you decide who is staying, you have to decide how much that person will pay the other spouse for their share of the property. He have to come up with a value that is fair for both parties.

Working It out on Your Own

The first option that you have during a divorce is to work out the mortgage buyout on your own. You and your spouse can sit down together and reasonably negotiate the terms of the buyout. In many cases, there is too much emotion between the two individuals to complete this process. In some cases, couples will be able to work out an agreement quickly. If you can come to an agreement between yourselves, this would be the easiest and most effective option.

Negotiation with Representation

If you are unable to come to an agreement on a buyout between yourselves, you will need to both hire legal representation. Both parties will hire a lawyer and will then begin negotiating. Many times, both parties and their lawyers will sit down in a room to discuss terms of the buyout. Other times, the entire process can be negotiated over the phone. If an agreement can be reached during this process, you will not have to take this issue to court and let the judge sort it out. In most cases, it will be to your advantage to try and get a deal done before you reach court.


If you are unable to come to an agreement by yourselves or with the help of legal representation, you will ultimately have to take the battle to court. You should also understand that each state will handle this process differently. The terms of the agreement will be different from one state to the next.

Once you reach court, it will be up to the judge to make the tough decisions for you. The judge will evaluate the situation and try to determine who should stay in the house and who should leave. Part of the decision might come down to where children will be living. The judge will then determine a fair amount for the buyout. At that point, both of you will be bound by the judge's decision.


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