When your marriage ends, few assets carry more emotional weight than the home you shared. Whether it’s where you raised your children, built memories, or simply created a sense of stability, deciding what happens to your house during divorce can feel overwhelming. For couples in Wake County, understanding your options for handling marital property, especially your home, can help you move forward with clarity and confidence.
At Eatmon Law Firm, PC, we’ve guided countless clients through this challenging process. Here’s what you need to know about navigating home ownership during divorce in North Carolina.
Is Your Home Considered Marital Property in North Carolina?
The first step in addressing your home during divorce is determining whether it’s marital property, separate property, or a combination of both. In North Carolina, marital property includes most assets acquired during the marriage, regardless of whose name appears on the deed or mortgage.
Your home is typically marital property if you purchased it after getting married, even if only one spouse’s name is on the title. However, the situation becomes more complex if one spouse owned the home before marriage, received it as a gift, or inherited it. In these cases, the home may be separate property, though mortgage payments, renovations, or improvements made during the marriage using marital funds can create a marital interest in the property.
If you refinanced a pre-marital home during your marriage or your spouse contributed to mortgage payments or home improvements, you may need legal guidance to determine how much of the home’s value is subject to division.
What Are Your Options for Dividing a Marital Home?
Once you’ve established that your home is marital property (or has a marital component), you have several options for handling it during your divorce:
Sell the home and split the proceeds. This is often the simplest solution, especially when neither spouse can afford to maintain the home alone or when you both want a fresh start. You’ll need to consider selling costs, outstanding mortgage balances, and timing. The proceeds are typically divided according to North Carolina’s equitable distribution laws, which doesn’t always mean a 50/50 split.
One spouse buys out the other’s interest. If one of you wants to keep the family home, that spouse can buy out the other’s share of equity. This will require determining the home’s current value and may require refinancing the mortgage in one name only. Keep in mind that the buying spouse must qualify for a mortgage independently and have the financial resources to maintain the home alone.
Continue co-owning the property temporarily. Some couples choose to maintain joint ownership for a period, often when minor children are involved. One spouse might live in the home with the children while both remain on the mortgage and deed until a specified event occurs (like the youngest child graduating high school). This arrangement requires a detailed agreement addressing mortgage payments, maintenance costs, tax benefits, and eventual sale terms.
How Does Equity Distribution Work in Wake County Divorces?
North Carolina follows equitable distribution, meaning marital property is divided fairly, though not necessarily equally. The court considers numerous factors when determining how to distribute your home’s equity, including the length of your marriage, each spouse’s income and earning capacity, contributions to the marriage (including homemaking), and the economic circumstances of each spouse.
Your home’s equity is calculated by subtracting what you owe on the mortgage from its current market value. You may need a professional appraisal to establish fair market value, especially if you and your spouse disagree on the home’s worth.
The court also considers whether one spouse needs the home more than the other, particularly when minor children are involved. A parent with primary custody may have a stronger claim to remaining in the family home to maintain stability for the children.
What About the Mortgage and Property Taxes?
A common misconception is that divorce automatically removes you from mortgage obligations. It doesn’t. Even if your equitable judgment or property settlement agreement awards the home to your spouse, you remain liable for the mortgage debt unless your former spouse refinances or sells the property. This means your ex-spouse’s missed payments could damage your credit score and financial standing.
For this reason, it’s important to address mortgage responsibility clearly in your separation agreement or court order. If your spouse is keeping the home, if the mortgage is in joint names, ensure they assume or refinance the mortgage in their name alone as part of the settlement. If they cannot qualify for refinancing immediately, include a deadline and consequences for failing to refinance.
Property taxes, homeowners insurance, and maintenance costs also need clear assignment. Without explicit terms, disputes can arise over who pays for repairs, insurance premiums, or annual tax bills.
Why Should You Work with Eatmon Law Firm, PC for Your Wake County Divorce?
Dividing a marital home involves complex legal and financial considerations that affect your future stability. At Eatmon Law Firm, PC, we bring decades of experience helping Wake County families navigate property division with skill and compassion.
Christine Eatmon is a North Carolina Board Certified Family Law Specialist and DRC Certified Family Financial Mediator, uniquely qualified to address both the legal and financial aspects of your home division. Whether through negotiated settlement or mediation, we work to protect your interests while helping you reach practical solutions that serve your family’s needs.
We serve clients throughout Wake, Durham, Franklin, and Granville Counties from our Wake Forest office. If you’re facing divorce and need guidance on what to do with your marital home, we invite you to schedule an initial consultation.
Contact Eatmon Law Firm, PC today at 919-435-0565 or visit our office at 1788 Heritage Center Dr #204, Wake Forest, NC 27587. Let us help you navigate this transition with confidence and clarity.