Keeping or Selling the Family Home After Divorce

Can the court decide what happens to your home?

Yes. Under Section 76 of the Law Reform (Marriage and Divorce) Act 1976, the court can divide or deal with the family home as part of the matrimonial assets.

It can order the home to be sold, transferred to one spouse, or kept for the children.

The home is often the largest asset in a marriage, so what happens to it shapes both spouses’ finances after divorce.

What are your options?

• Sell and split. The house is sold and the money is divided. This is often simplest when neither of you can afford to buy the other out.
• Buy out your spouse. One spouse refinances the home loan in their own name and pays the other their share. This works if you want to stay and can afford it.
• Keep it for the children. The court may let one parent stay in the home for a period, often until the youngest child turns 18. The house may then be sold and the money split.

How does the court decide who keeps the home?

The children’s welfare comes first. If one parent has custody and the children attend a nearby school, the court may let them stay.

The court also looks at whether each spouse can afford the loan, assessment tax and upkeep. If you cannot afford it alone, a sale may be the realistic choice.

What each spouse contributed also counts. This includes money paid and indirect contributions such as running the home and caring for the children.

What if neither of you can afford it?

Selling is usually the practical option. The money is divided based on each spouse’s contributions and what the court sees as fair.

Get a professional valuation before you agree to sell. Knowing the market value helps you negotiate a fair split.

If a sale would cause real hardship, especially for the children, the court may look at other ways. One spouse might pay the other over time, or maintenance might be adjusted to cover housing.

What about a home bought before the marriage?

It may be treated differently. But if it became the family home and was improved during the marriage, it may still be divided.

If the home is not in your name, you may still have a claim if you paid the loan, paid for renovations or contributed indirectly. Keep records of every payment and improvement for financial disclosure.

What should you do now?

Gather your home papers:

• Sale and purchase agreement.
• Title deed.
• Loan statements.
• Records of what each spouse paid.

You will need these for financial disclosure, the step where each side lists what they own.

Speak to a lawyer early. The decision affects where you live, your money and your children.

Looking to engage a divorce lawyer? If you are unsure whether to keep, sell or buy out the house, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.