Do You Have to Sell Your House in a Divorce in Florida?

Do You Have to Sell Your House in a Florida Divorce?

Quick Answer: No, selling is not required. Under Florida's equitable distribution law (F.S. 61.075), the marital home can be divided several ways: one spouse buys out the other, you arrange a deferred sale, one spouse keeps the house in exchange for other assets, or you sell and split proceeds. Forced sale only happens when no other option works.

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Your 4 Options for the Marital Home

Option 1: Buyout (Most Common)

One spouse keeps the house and compensates the other for their equity share.

How it works:

Example:

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Home Value: $500,000

Mortgage: $300,000

Equity: $200,000

Each Spouse's Share: $100,000

Wife keeps house, pays husband $100,000

(via refinance, asset trade, or payment plan)

```

Best when:

• One spouse wants the house and can afford it
• Sufficient equity for meaningful buyout
• Keeping spouse can qualify for refinance alone

Option 2: Deferred Sale

Both spouses remain owners, but one lives in the house. Sale happens later.

Common triggers for eventual sale:

• Youngest child turns 18 or graduates
• Residing spouse remarries or cohabitates
• Specified number of years pass
• Residing spouse chooses to sell

Pros:

• Children stay in family home
• No immediate refinancing required
• Time for market to improve

Cons:

• Both spouses remain on mortgage
• Non-residing spouse's credit at risk
• Can't fully move on financially

Option 3: Offset with Other Assets

One spouse keeps the house; the other gets equivalent value in other assets. This approach aligns with F.S. 61.075's requirement that courts "must begin with the premise that the distribution should be equal."

Example:

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House Equity: $200,000 → Wife keeps

Retirement Accounts: $200,000 → Husband keeps

Result: Equal distribution without selling

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Best when:

• Significant other assets exist
• Both parties prefer different assets
• Clean break desired

Option 4: Sell and Split Proceeds

Sell the house, pay off the mortgage, split remaining equity.

When this makes sense:

• Neither spouse can afford the home alone
• Both want a fresh start
• High conflict makes co-ownership impossible
• Home is underwater or has minimal equity
• Market conditions are favorable

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When Selling Becomes Mandatory

A court may order a sale if:

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How to Avoid Being Forced to Sell

1. Qualify for Refinancing

Before negotiating, get pre-approved for a mortgage in your name alone. Include potential alimony as income if applicable.

2. Have Buyout Funds Ready

Options include:

• Cash savings
• Retirement account offset
• Family loan
• Home equity loan after divorce
• Structured payment plan to spouse

3. Negotiate Creatively

• Offer other assets in exchange
• Propose deferred sale with clear terms
• Consider temporary arrangements
• Be flexible on timeline

4. Document Why You Should Keep It

• Primary caregiver for children
• Work from home
• Special needs accommodations
• Proximity to children's school

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The Selling Process in Divorce

If you do sell, here's how it typically works:

Step 1: Agree on Listing

• Choose realtor together (or court appoints one)
• Agree on list price
• Set minimum acceptable offer

Step 2: Prepare Home

• Make necessary repairs
• Stage for sale
• Schedule showings

Step 3: Accept Offer

• Both spouses must agree to accept
• If you can't agree, court decides

Step 4: Close and Distribute

• Pay off mortgage
• Pay closing costs
• Pay any liens
• Split remaining proceeds per agreement

Timeline

• Listing to closing: 2-4 months typically
• Add time for repairs, staging if needed
• Market conditions affect timeline

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Tax Considerations

Capital Gains Exclusion

• Single filers: Exclude up to $250,000 gain
• Married filing jointly: Exclude up to $500,000
• Requirement: Must have lived in home 2 of last 5 years

Timing Matters

• Selling before divorce final: Can use $500,000 married exclusion
• Selling after: Each uses $250,000 single exclusion
• Deferred sale: Make sure you still qualify when sold

Transfer Between Spouses

• No tax on buyout transfers incident to divorce
• Must be within 1 year of divorce (or per decree within 6 years)

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Protecting Yourself Either Way

If Keeping the House:

✅ Get spouse off mortgage via refinance

✅ Update deed to your name only

✅ Budget for all costs (taxes, insurance, maintenance)

✅ Have emergency fund for repairs

If Leaving the House:

✅ Get fair compensation for your equity

✅ Require refinance to remove your name

✅ Set deadline for refinance/sale

✅ Protect credit if spouse misses payments

If Selling:

✅ Use neutral realtor

✅ Agree on pricing strategy upfront

✅ Put proceeds in escrow until divided

✅ Plan for where you'll live next

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We Help You Make the Right Choice

Deciding what to do with the house is one of the biggest divorce decisions. At Divorce.law, we:

• Analyze all options specific to your situation
• Calculate true costs of keeping vs. selling
• Negotiate fair terms for buyout or sale
• Protect your credit and financial future

Don't make a $100,000+ decision without expert guidance.