Divorce Buyout Calculator

Start with the home's current market value and subtract the mortgage balance and any other liens to get the equity. Multiply that equity by the share owned by the spouse being bought out (often 50%). The result is the buyout amount — what the spouse keeping the home pays the other for their share.

You split the equity, not the full value. Equity is what is left after the mortgage and any other loans against the home are paid off. Dividing the sale price without subtracting the mortgage would badly overstate what each spouse actually owns.

Generally no. Under Internal Revenue Code Section 1041, transfers of property between spouses or former spouses incident to a divorce are treated as non-taxable events. The spouse keeping the home takes the other spouse's basis, which can matter for capital gains later when the home is eventually sold.

Not necessarily. In community property states, marital equity is usually split evenly, while equitable-distribution states divide it fairly, which is not always equally. Separate property (for example, a down payment made before marriage) may be excluded. This calculator lets you set any share.

Common options are paying cash, refinancing or taking a cash-out refinance to pull equity and pay the other spouse, or offsetting the buyout against other marital assets such as retirement accounts. Lenders limit how much equity a refinance can access, so the full equity is not always available as cash.

No. This is a quick estimate. An actual buyout depends on a current appraisal, your state's property-division rules, separate-versus-marital property, and financing. Always confirm the numbers with a licensed appraiser, attorney, and lender.