What Happens To A Fort Lauderdale Home When Neither Spouse Can Afford To Buy The Other Out?

Divorce forces couples to make dozens of practical decisions, and few are as emotionally loaded as figuring out what happens to the family home. Many people assume there are only two outcomes: one spouse buys out the other’s share, or the house gets sold. But what happens when neither spouse can qualify to refinance the mortgage or pay the other their share of the equity? It’s a scenario that comes up more often than most people expect, especially as home values, and the mortgages tied to them, have climbed substantially in recent years.

When a Buyout Isn’t Realistic

A buyout sounds simple in theory. One spouse keeps the house and pays the other for their share of the equity, usually by refinancing the mortgage into their name alone. In practice, that means qualifying for a new loan on a single income, at current interest rates, for a home that may be worth far more than it was when the couple bought it. If neither spouse can qualify alone, or the numbers just don’t work, a clean buyout may not be on the table. So what happens next?

Weighing the Alternatives

Florida is an equitable distribution state, meaning marital assets, including the marital home, are divided fairly rather than automatically split down the middle. Florida Statute 61.075 lays out the factors a court weighs when dividing property, from the length of the marriage to each spouse’s financial circumstances and contributions to the household.

When a buyout isn’t realistic, couples and courts tend to look at a few other paths. Selling the home and splitting the proceeds is the most straightforward. Some couples negotiate a deferred sale, where one spouse (often the one with the children most of the time) stays in the home for a set period before it eventually goes on the market. Others consider co-owning the property for a limited time, though that requires a level of cooperation not every divorcing couple can manage.

Is one option clearly better than the others? That depends on whether children are involved, how much equity is at stake, and whether either spouse can realistically cover the home’s expenses even without a mortgage payment tied to a buyout. Property taxes, insurance, and upkeep don’t pause during a divorce, so someone has to keep paying them while the sale plays out.

What This Means for Fort Lauderdale Homeowners

Rising home values have made this a particularly common issue locally. A house purchased years ago with a modest mortgage may now carry equity that’s genuinely difficult to divide, especially with today’s rates making refinancing expensive. Couples in this position often want to know how long they can reasonably wait to sell, and what happens to the mortgage if one spouse moves out in the meantime. These are worth sorting out early, before decisions get made under pressure.

We’re Here to Help

Every marital estate looks different, and the right path for one couple’s home may not work for another’s. If you and your spouse are trying to figure out what happens to your Fort Lauderdale home during your divorce, we encourage you to reach out. At Sandra Bonfiglio, P.A., we work with clients throughout Fort Lauderdale and Broward County on property division and divorce matters, and we would be glad to talk through your options. Contact our Fort Lauderdale divorce attorneys today to schedule a consultation.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html