How Equity is Divided When You Sell a House in Divorce

How Is Equity Split When You Sell the House?

Selling a house during divorce isn’t just an emotional decision, it’s a financial one. For many couples, their home is their largest asset, and figuring out how to divide the equity can become a central point of negotiation or even conflict.

If you’re going through a divorce in Roanoke, here’s what you need to know about how equity is divided and how to make sure you walk away with your fair share.

🏡 What Is Home Equity?

Equity is the current market value of your home minus what you still owe on the mortgage.

Example: If your home sells for $250,000 and you owe $190,000 on the mortgage, the equity is $60,000.

When you sell the house during divorce, this equity is usually divided between spouses—but not always equally.

⚖️ Virginia Is an Equitable Distribution State

In Virginia, marital property is divided based on what’s fair, not necessarily 50/50. This is called equitable distribution.

That means the court can divide home equity based on:

• Each spouse’s financial and non-financial contributions
• Whether one spouse paid more toward the mortgage or down payment
• Who will have custody of children (to maintain housing stability)
• Each spouse’s ability to secure housing after divorce
• Whether the home was inherited or owned before marriage

🧾 Marital vs. Separate Equity

Before dividing the equity, the court will determine how much of it is marital property and how much is separate property.

• Marital Equity: Built during the marriage using joint income or effort.
• Separate Equity: Built before marriage or using inheritance/gift money kept separate.

⚠️ Even if only one spouse’s name is on the deed, the other may still have a legal claim to part of the equity if the home was lived in and maintained during the marriage.

🛠️ What About Repairs or Renovations?

If one spouse paid for or worked on major improvements to the home, the court may factor that into the equity division.

For example:

• One spouse funded a kitchen remodel
• One partner maintained or renovated the home using their own labor

These contributions can shift how equity is split, especially if there’s documentation.

💰 Common Ways Equity Is Divided in Divorce

Here are the most common outcomes:

1. Sell the Home and Split the Proceeds

This is the most straightforward option. The home is sold, and after paying off the mortgage and expenses, the net equity is divided.

2. One Spouse Buys Out the Other

One spouse stays in the home and pays the other their share of the equity. A refinance is often required to remove the other spouse from the mortgage.

3. Deferred Sale (Court-Ordered)

In cases involving children, a judge may allow one spouse to remain in the home temporarily, with the sale delayed until the kids are older.

😟 What If You Can’t Agree?

When spouses disagree on how to divide the home’s equity:

• Mediation is often the first step.
• If that fails, a judge will decide as part of the divorce settlement.
• In many cases, the court will order the sale of the home if no fair buyout can be reached.

🏃 Want to Avoid the Hassle? Sell Fast, Split Fairly.

If both parties agree to sell, we can help you:

• Sell your home as-is (no repairs needed)
• Get a fair cash offer
• Close quickly so you can move forward

At Linken Investments, we specialize in buying homes from divorcing couples in Roanoke and surrounding areas. We work directly with both spouses, attorneys, or mediators to make the process smooth and neutral.

📞 Get Help With a No-Stress Sale

You don’t have to drag this out in court. If you and your spouse need to sell the house fast and fairly, we’re here to help.

📱 Call or text us at 540-523-1591

Related Posts:

• Who Gets to Decide What Happens to the House in a Divorce?
• What to Do If One Spouse Won’t Sell the House
• When Should You Sell Your Home in a Divorce?