When Neither Spouse Can Buy Out the House: What Happens to the Family Home in an Atlanta Divorce
The family home is often the single biggest asset on the table in a divorce, and it’s usually the most emotional one too. But what happens when neither spouse has the financial ability to refinance the mortgage and buy out the other’s share? It’s a question that comes up constantly for Atlanta property division attorneys, and the answer depends on a mix of finances, timing, and what both parties are willing to accept.
Selling the House and Splitting the Proceeds
When a buyout isn’t realistic, selling the home is often the most straightforward path forward. Once the sale closes, the proceeds are typically divided according to whatever agreement the spouses reach or, if they can’t agree, according to how a judge orders the marital estate to be divided. This route has the benefit of a clean break. Neither spouse remains financially tied to the other through a shared mortgage, and both can use their share of the equity to move forward. The tradeoff is timing. Selling a house takes time, and in a shifting market, the final sale price isn’t always predictable.
Co-Owning the Home for a Set Period
Some couples choose to keep the house for a while longer, particularly when children are involved and stability matters. In these arrangements, one spouse might continue living in the home with the kids while the other retains a financial interest in the property, with a plan to sell once a specific milestone is reached, such as a child graduating high school. This can work well emotionally, but it does require both spouses to stay financially entangled for longer, which isn’t the right fit for everyone.
Letting the Court Decide
If spouses can’t agree on what to do with the house, a Georgia court will step in. Georgia follows equitable distribution, meaning marital property is divided fairly based on the circumstances of the case rather than split automatically down the middle. Under O.C.G.A. § 19-5-13, once a decision is reached on how property should be divided, the court has the authority to carry that division into effect, including ordering a sale if that’s what fairness requires. Judges typically weigh things like each spouse’s financial situation, contributions to the marriage, and the needs of any children before deciding what to do with a shared home.
Other Options Worth Considering
Beyond selling or co-owning, some couples explore creative solutions like one spouse trading other marital assets, such as retirement funds, in exchange for keeping the house, or refinancing later once their financial picture improves. Every situation is different, and what works for one family may not work for another.
Trying to figure out what happens to the house is one of the more stressful parts of any divorce, especially when a straightforward buyout isn’t in the cards. Whether the right move is selling, co-owning for a while, or asking a judge to decide, it helps to understand the options before making a decision that will affect your finances for years to come. If you’re facing this exact situation, our Atlanta property division lawyers at Buckhead Family Law are here to walk you through what’s realistic given your circumstances and help you figure out the path that makes the most sense for your family. We’d welcome the chance to talk through your situation and help you move forward with confidence.
