What Happens to the House in a Florida Divorce?

What Happens to the House in a Florida Divorce?

Quick Answer: You have three main options: sell the house and split proceeds, one spouse buys out the other, or (rarely) continue co-owning temporarily. Florida courts divide the home equitably, not necessarily 50/50.

Is the House Marital Property?

Under F.S. 61.075, courts first classify the home as marital or non-marital:

Marital Property (subject to division per F.S. 61.075(6)(a)):

"All real property held by the parties as tenants by the entireties... shall be presumed to be a marital asset."

• Purchased during marriage (regardless of whose name is on title)
• Paid for with marital funds
• Home where both spouses lived during the marriage

Non-Marital Property (protected per F.S. 61.075(6)(b)):

• Owned before marriage AND kept separate
• Received as inheritance or gift from third party
• Covered by valid prenuptial agreement

Mixed/Commingled Property (partial division):

F.S. 61.075(6)(a) includes "the enhancement in value and appreciation of nonmarital assets resulting either from the efforts of either party during the marriage or from the contribution to or expenditure thereon of marital funds."

• Home owned before marriage but mortgage paid during marriage: marital portion = appreciation + principal paid with marital funds
• Inherited property with improvements from marital funds: marital portion = value of improvements

Three Main Options for the House

Option 1: Sell the House

Most common option

Process:

Pros: Clean break, cash for both parties

Cons: Transaction costs, market timing

Option 2: One Spouse Buys Out the Other

Common when one spouse wants to keep the home

Process:

Example:

• Home value: $400,000
• Mortgage: $200,000
• Equity: $200,000
• Buyout: $100,000 (assuming 50/50 split)

Pros: Stability, especially with children

Cons: May strain finances, requires refinancing

Option 3: Deferred Sale/Co-Ownership

Less common, usually temporary

When used:

• Children need stability until graduation
• Market conditions are poor
• Neither spouse can afford to buy out

Requires: Detailed agreement on expenses, maintenance, timeline

Factors Courts Consider (F.S. 61.075)

Florida courts use equitable distribution, starting with a presumption of equal division unless factors justify otherwise:

Key Statute: Courts "must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution." — F.S. 61.075(1)

The Mortgage Complication

Critical: Being awarded the house doesn't remove you from the mortgage.

If your name is on the mortgage:

• You remain liable for payments
• Missed payments affect YOUR credit
• Must refinance to remove liability

Protect yourself: Require refinancing in the divorce agreement with a deadline.

Homestead Considerations

Florida has unique homestead protections:

• Protects home from most creditors
• Affects property tax assessments
• May impact what happens in divorce

Get Expert Help

Your home is likely your largest asset. Schedule a $95 Strategy Session to understand your options.