Everything You Need to Know About Dividing, Valuing, and Selling Your Home During Divorce in Georgia
For many couples, the family home is more than just a piece of property — it’s a symbol of stability, shared memories, and life’s milestones. But when divorce becomes part of the story, that home can quickly turn into a complex legal and financial challenge.
In Georgia, where equitable distribution governs the division of marital assets, selling the home is often the most practical — and sometimes emotionally difficult — path forward.
At The Sherman Law Group, we’ve guided countless clients through the difficult process of selling their homes during divorce. This guide is designed to help you understand how to protect your rights, maximize your equity, and make informed decisions during one of the most pivotal times in your life.
1. Understanding Georgia Law on Marital Property
In Georgia, marital property is divided under equitable distribution — not 50/50, but what the court considers fair. The marital home is usually considered marital property, even if only one spouse's name is on the deed.
Key points to know:
- If the house was bought during the marriage, it’s likely marital property.
- If it was purchased before the marriage but marital funds were used to pay the mortgage or make improvements, it may be partially marital property.
- Equity built up during the marriage is often subject to division, even if the home is separately titled.
The court may order the house sold and the proceeds split, or one party may be awarded the home with the obligation to buy out the other spouse’s share.
2. Should You Sell the Home or Not?
Before listing the home, consider whether selling is the best option.
Reasons to Sell:
- Neither spouse can afford the mortgage alone.
- It provides liquid assets to divide.
- Emotional or logistical challenges make continued joint ownership impossible.
Reasons to Keep:
- One spouse wants to remain in the home, especially if children are involved.
- The housing market is unfavorable for sellers.
- It’s possible to refinance and remove one spouse from the mortgage.
If you and your spouse disagree, a court can ultimately decide. But mutual agreement usually leads to better outcomes for both parties.
3. Timing: When Should You Sell the House?
The timing of the sale can significantly impact your financial and legal strategy.
Options:
- Before divorce is final: This provides cash that can be divided in the settlement. However, both parties must cooperate during the process.
- During the divorce: Often done through temporary orders that dictate how the house will be maintained and sold.
- After divorce: One spouse may stay temporarily, with a requirement to sell within a set time.
Each timeline has tax, emotional, and practical considerations. Consult your divorce attorney and a financial advisor before deciding.
4. Preparing the House for Sale During Divorce
You’ll need to collaborate with your spouse — or agree to delegate responsibilities — to prepare the house for sale.
Checklist:
- Declutter and depersonalize. Buyers need to envision themselves in the home.
- Repair obvious issues. Fix leaky faucets, holes in walls, and broken fixtures.
- Staging. If one party has moved out, consider staging the home professionally.
- Agree on budget. Will you split repair or staging costs? Document it.
Selling during divorce is emotionally charged. Keeping the focus on presentation and profitability can prevent arguments and delays.
5. Choosing the Right Real Estate Agent
A neutral, experienced real estate agent is crucial when selling your house during divorce.
Tips for choosing:
- Select someone who has handled divorce sales before.
- Avoid agents who have personal relationships with either spouse.
- Make sure both parties agree to the agent in writing.
You may want to draft a listing agreement outlining responsibilities, price reductions, communication expectations, and how disputes will be resolved.
6. Setting the Sale Price
You and your spouse must agree on a listing price. This can be done through:
- Comparative Market Analysis (CMA): Provided by your real estate agent.
- Independent appraisals: Can be court-ordered or agreed upon by both parties.
- Mediator-recommended valuations: In contentious situations.
If you can't agree on a price, the court may appoint an appraiser or force the sale based on professional valuations.
7. Handling Offers and Negotiations
Both spouses must typically approve the final offer. Common issues arise when:
- One party delays or refuses to respond to offers.
- There’s disagreement about counteroffers or closing terms.
- Offers fall below emotional expectations.
To avoid gridlock, include a clause in your divorce agreement or temporary order that lays out the process and response timeframes for offers.
8. Who Pays for What?
Selling a home involves costs. You and your spouse must decide how to divide:
- Realtor commissions (typically 5–6%)
- Repairs and staging
- Closing costs
- Mortgage payoff amounts
- Property taxes, HOA dues, utilities during listing
Unless otherwise ordered by the court, these costs are typically deducted from the sale proceeds and split equitably.
9. Dividing the Proceeds
Once the home sells, what happens to the money?
Options:
- Split equally: Most common in amicable divorces.
- Adjusted split: Based on contributions (e.g., one spouse paid more toward the mortgage or maintenance).
- Offset: One spouse receives more in other assets (retirement accounts, vehicles) while the other gets more cash from the sale.
You’ll want a clear, court-approved agreement that states how proceeds are distributed — preferably before the sale.
10. Tax Implications
Selling a home in divorce can have tax consequences. We are not tax professionals, but we wanted to briefly touch on this area for you.
Key considerations:
- If you owned and lived in the home for 2 of the last 5 years, you may qualify for some amount of capital gains exclusion.
- Divorce-related sales may still allow this exclusion — even if the home is sold after the divorce, depending on how the settlement is structured.
- Speak to a CPA about filing status, capital gains, and whether to file jointly or separately for the year of the sale.
11. When One Spouse Refuses to Cooperate
Sometimes, one party refuses to sign documents, sabotages showings, or rejects all offers.
What to do:
- Your attorney can file a motion to compel sale or motion for contempt.
- Temporary orders can give one spouse the authority to act alone.
- A court can appoint a special master or real estate receiver to handle the sale.
Refusing to cooperate with a court-ordered sale can result in legal penalties and a reduced share of proceeds.
12. Selling the House with Children Involved
If children are involved, the decision to sell the house can be even more emotional and complex.
Questions to consider:
- Would moving disrupt school, childcare, or custody arrangements?
- Can one spouse afford to stay in the home until the children reach a certain age?
- Does keeping the home make long-term financial sense?
Sometimes, the divorce agreement allows one parent to stay temporarily, with the house to be sold later (often when the youngest child graduates or turns 18).
13. Alternatives to Selling
If you or your spouse prefer not to sell, here are some alternatives:
- Buyout: One spouse pays the other for their share of the equity.
- Deferred sale (nesting): The children stay in the home while parents rotate in and out.
- Co-ownership post-divorce: Risky but possible with detailed legal agreements.
These options require careful negotiation, documentation, and realistic expectations about finances, maintenance, and emotional impacts.
14. Finalizing the Sale in Your Divorce Agreement
Your final divorce decree or property settlement agreement should include:
- Whether the house is to be sold or retained
- Who is responsible for listing and preparing the house
- The deadline for listing and accepting offers
- How the proceeds will be divided
- How disputes will be resolved
This protects both spouses and ensures enforceability. Courts in Georgia will typically not “revisit” property division after divorce unless there’s fraud or hidden assets.
Get the Right Legal Support: Georgia Divorce Lawyer Near Me
Selling your house during a Georgia divorce is not just about finances — it’s about protecting your future. From understanding marital equity to navigating emotional roadblocks and court procedures, the process can be complicated and tense.
At The Sherman Law Group, we help divorcing spouses throughout Georgia make smart, strategic decisions about real estate, assets, and their families. With our decades of experience in Georgia divorce law, we can help ensure your rights are protected and your interests are prioritized — whether you're the one staying, selling, or buying out the other spouse.
If you’re going through a divorce and facing the difficult decision of what to do with your home, contact us today. Let our experienced Georgia divorce lawyers help guide you through this critical part of your journey.