Valuing Real Estate: What Is It Worth?

To divide a real estate equitably, you need to know its current market value. The most common methods include:

• Comparative Market Analysis (CMA): Provided by a real estate agent
• Professional Appraisal: A licensed appraiser gives a formal opinion
• Tax Assessments: Public records, but usually less accurate

If spouses disagree, hiring a neutral appraiser and agreeing to accept their valuation can save time and conflict. Many people look at public websites such as Zillow or Redfin, just remember that those tools can vary in accuracy and are best used as starting points rather than a final value. 

Understanding Equity: How Much Is Actually Yours?

Once you know the market value of your real estate, you can calculate equity:

Equity = Market Value – Mortgage(s) and Liens

For example:

• Home value: $800,000
• Mortgage balance: $320,000
• Equity: $480,000

Be sure to include second mortgages, HELOCs (home equity lines of credit), and any other loans in your calculation. These additional debts reduce the equity available to divide. For example, if a home is worth $800,000, but there is a primary mortgage of $320,000, a HELOC of $30,000, and a contractor’s lien for $10,000, the total debt is $360,000 leaving only $440,000 in equity. If you’re unsure whether a lien exists, a title search or recent mortgage statement may help clarify.

Mortgage Responsibilities and Risks
Even if one spouse is awarded a home or property, both may remain legally responsible for the mortgage if both names are on the loan. Lenders aren’t bound by divorce agreements. If your name is on the mortgage, you’re on the hook and this can create long-term financial risk if the loan isn’t refinanced.

Your Options:
Refinance into one spouse’s name. Refinancing is often required if one spouse wants to keep a home or property and remove the other from the mortgage. This involves applying for a new loan in just one person’s name and using it to pay off the original joint mortgage.

Tip: Lenders typically evaluate your income, debt-to-income ratio, and credit score. If you can’t qualify alone, you may need a co-signer. 

Sell the real estate to eliminate shared debt. Selling a home is one of the most common outcomes in divorce. It allows both parties to pay off the mortgage and other home-related debts, then divide the remaining proceeds. This approach creates a clean financial break and gives each person the flexibility to move forward independently.

Tip: If you choose to sell a property, be sure to clarify who covers costs like repairs, agent commissions, and moving expenses as part of your divorce agreement.

Keep joint ownership temporarily with a clear written agreement. Some couples choose to continue owning their family home together for a defined period after divorce. This is usually done to maintain stability for children, wait for a better real estate market, or give one spouse time to buy out the other.

Note: Lenders are not bound by divorce agreements. If your name is on the mortgage, you’re still legally liable.

To divide real estate, you first need to know its value through an appraisal, market analysis, or estimate. Subtracting mortgages and liens gives you the equity to split. From there, couples usually refinance into one name, sell and divide the proceeds, or keep joint ownership temporarily. Each option has tradeoffs, so clarity on value, debt, and responsibility is essential.

Please see our article: Dividing Real Estate in Divorce: What You Need to Know

Please our article: Should You Keep, Sell, or Buy Out Your House