Divorce is hard enough. Then someone asks the big question: What do we do with the house?
For many couples, the house is the biggest thing they own together. It can also become one of the hardest parts of a divorce.
Judit Crace, Designated Broker of Top Idaho Real Estate and a certified Real Estate Divorce Specialist, has helped Treasure Valley homeowners sell homes during divorce for years. The sales that go most smoothly usually have a few things in common: clear communication, realistic expectations, and decisions made before a buyer is involved.
Here is what Idaho homeowners should know before putting a house on the market.
Who Has to Sign to Sell a House in Idaho?
There is a common way to describe Idaho real estate:
It can take one spouse to buy, but two spouses to sell.
Idaho is a community property state. In general, property bought during the marriage is considered community property, although there are exceptions.
Idaho Code 32-912 says that one spouse cannot sell, transfer, or place a lien on community real estate unless the other spouse also signs the sale agreement, deed, or other transfer document.
That means even if only one spouse's name appears on the deed or mortgage, don't assume that person can sell the home alone.
This is something that should be checked early. Ownership, marital status, and title can all affect who needs to sign.
This is why ownership should be checked early. In one of our buyer transactions, we found a divorcing spouse still on the deed before the offer was written.
Should You Sell the House Before or After the Divorce?
There is no single right answer.
Most couples look at one of three choices:
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Sell the house and split the money. This can give both people a cleaner financial break.
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One spouse keeps the house and buys out the other. This may work if that person can afford the home and qualify for a loan on their own.
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Keep the house for a while and sell later. Some couples wait until children finish the school year or until another agreed date.
Keeping the house together after separating can work, but it also means both people may stay tied to the mortgage, repairs, upkeep, and future sale.
A divorce agreement or court order may also set the timing.
Does a Divorce Decree Take a Spouse Off the Mortgage?
No, not automatically.
This catches a lot of people by surprise.
Let's say the divorce decree says one spouse keeps the house and makes the mortgage payments. It may also say that spouse has to refinance within a certain amount of time.
That does not automatically change the mortgage.
The mortgage is a separate agreement with the lender. If both spouses signed the loan, both may still be responsible until the loan is paid off, refinanced, or changed with the lender's approval.
Signing a quitclaim deed does not fix the mortgage either.
A quitclaim deed can remove someone's ownership interest in the property. It does not automatically remove that person from the loan.
The most common ways someone may get off the mortgage are:
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Sell the house and pay off the loan
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Refinance into the name of the spouse keeping the house
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Use an approved loan assumption with a release of liability, if the lender allows it
If a divorce decree says one spouse must refinance and that refinance never happens, the other spouse can stay tied to that mortgage much longer than expected.
This is general information, not legal or lending advice. Talk with an Idaho family law attorney and your lender about your specific mortgage and divorce agreement.
Can One Spouse Buy Out the Other Spouse?
Yes, sometimes.
The first step is usually figuring out the home's current market value.
For example, if a home is worth $500,000 and there is $300,000 left on the mortgage, there may be about $200,000 in equity before selling costs, liens, or other expenses.
That does not automatically mean each spouse gets $100,000. How the equity is split depends on the divorce agreement or court order.
The spouse keeping the house may also need to qualify for a new loan large enough to pay off the old mortgage and cover the buyout.
Before agreeing to a buyout, both people should understand what the home is worth and whether the person keeping it can afford the new loan.
How Do You Price a House When Spouses Don't Agree?
This is often where the fighting starts.
One spouse wants top dollar. The other wants it sold quickly.
The best way to reduce that fight is to make the pricing discussion about the market, not about either spouse.
Judit's approach is to show both spouses the same comparable sales, market data, and pricing information.
She also recommends agreeing on a price drop plan before the house goes on the market.
For example, the sellers might agree that if there are no offers after 21 days, they will review the price.
Making that decision ahead of time can prevent a much bigger fight later.
Who Talks to the Real Estate Agent?
When both spouses are clients in the listing, both should receive the important information about the sale.
At Top Idaho Real Estate, Judit and Isaac send important transaction updates, offers, showing feedback, and other key information to both spouses.
They do not take sides in the divorce.
Their job is to handle the real estate sale. Decisions about the divorce itself belong with the spouses and their attorneys.
A REALTOR® can help with pricing, preparing the home, marketing, negotiating with buyers, and getting the sale to closing.
What If One Spouse Still Lives in the House?
This is very common.
One spouse may move out while the other stays in the home until it sells.
Before the first showing, it helps to agree on a few basics:
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Who will keep the house clean and ready for showings
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How much notice is needed for showings
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How showing requests will be handled
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Who will take care of the yard and basic upkeep
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How repairs will be approved
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When the spouse who moved out can come to the property
The goal is to keep the showing process simple and predictable.
The more of these details that are decided before listing, the fewer decisions have to be made under pressure later.
What Happens If One Spouse Refuses to Sell?
Sometimes one spouse wants to sell and the other does not.
A real estate agent cannot solve that dispute.
Judit has seen how serious this can become.
In one transaction, a judge awarded the home to the wife. There was no mortgage on the property, but the husband still refused to sign the quitclaim deed transferring his interest.
The wife had to go back to court before the title issue could be resolved, and the sale was tied up in the meantime.
That is why ownership and signing issues should be handled as early as possible.
If both spouses still have an ownership interest and one refuses to cooperate, the attorneys or court may need to step in.
A divorce agreement or court order may say who gets the home or whether it must be sold, but the paperwork still has to be completed before a clean sale can move forward.
Once the ownership and signing issues are settled, the real estate brokerage can handle the pricing, marketing, offers, and sale.
Where Does the Money Go When the House Sells?
At closing, the title company first pays the bills tied to the property and the sale.
That may include:
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The mortgage
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Property liens
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Closing costs
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Real estate compensation
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Other costs that must be paid at closing
The money left over is then paid out based on the divorce agreement, court order, or closing instructions.
In some cases, the money may be held until the divorce is final or until the spouses agree on how it should be split.
What About Taxes When a House Is Sold During Divorce?
Divorce can create tax questions that do not come up in a normal home sale.
The IRS has special rules for property transfers between spouses and former spouses. It also has rules for the sale of a main home.
For example, moving a home from one spouse to the other because of a divorce usually does not create an immediate taxable gain.
A later sale can bring up other questions, including how long each person owned and lived in the home and whether the home-sale tax exclusion applies.
A tax professional can help explain how the timing of a transfer or sale may affect each spouse.
What Should You Look for in a REALTOR® During a Divorce?
Selling during a divorce is different from a normal home sale.
You may have two sellers who no longer make financial decisions together.
A good divorce real estate professional should be able to:
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Communicate clearly with both spouses
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Keep important decisions in writing
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Use market data when the sellers disagree about price
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Understand that title and mortgage issues may be more complicated
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Stay out of the fight between the spouses
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Know when a question should go to an attorney, lender, CPA, or title company
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Keep the real estate sale moving without adding more conflict
Experience matters too.
Judit Crace has worked in Treasure Valley real estate since 2004, became a broker in 2010, and opened Top Idaho Real Estate in 2013.
She holds the Real Estate Divorce Specialist designation, along with the Real Estate Negotiation Expert (RENE) and Seniors Real Estate Specialist (SRES) designations.
Top Idaho Real Estate is a boutique brokerage. Clients work directly with Judit and her son and business partner, Isaac Crace.
Judit also offers a free guide for homeowners who are selling a house during divorce.
Call or text Judit at 208-989-8461 to request a copy.
Judit and Isaac are REALTORS®, not attorneys. Every divorce is different, so talk with an Idaho family law attorney about your specific situation.
Selling a House During Divorce in Idaho: FAQs
Can I sell my house during a divorce in Idaho without my spouse's signature?
Usually not if the home is community property.
Idaho Code 32-912 generally requires both spouses to sign when community real estate is sold. There can be exceptions, so title and ownership should be checked before listing.
Is it really one spouse to buy but two spouses to sell in Idaho?
That is a common way to explain how Idaho real estate law can work.
One spouse may be able to buy real estate without the other spouse signing the purchase papers. But selling community real estate generally requires both spouses to sign.
Do we have to wait until the divorce is final to sell the house?
No.
Many couples sell the house before the divorce is final. A court order or divorce agreement may affect when or how the home can be sold.
If my divorce decree says my ex keeps the house, am I off the mortgage?
Not automatically.
If your name is still on the mortgage, you may still be responsible for the loan until it is paid off, refinanced, or the lender formally releases you.
Does a quitclaim deed remove me from the mortgage?
No.
A quitclaim deed deals with ownership of the property. It does not automatically remove someone from a mortgage they signed.
Can one spouse buy out the other's share of the house?
Yes, sometimes.
The couple first needs to figure out the home's value and equity. The spouse keeping the home may also need to qualify for a new loan large enough to pay off the old mortgage and complete the buyout.
What happens if my spouse refuses to sell the house?
If the spouses cannot agree, their attorneys or the court may need to decide what happens with the property.
Even when a judge awards the home to one spouse, the title paperwork still needs to be completed before the property can be sold.
Who pays the real estate commission when a house is sold during divorce?
Real estate compensation and other closing costs are usually paid through the closing before the money left over is split.
Who decides how the money from the sale is split?
The remaining money is paid out based on the divorce agreement, court order, or other closing instructions.
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