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Marital Home Buyout Calculator

Determine how much it will cost to buy out your spouse's share of the marital home. See your new mortgage payment, check if it is affordable based on your income, and compare the buyout option against selling.

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Spouse's Equity Share: 50%
10%90%
%
years
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Used for affordability analysis
Buyout Amount
$75,000
Total home equity: $150,000
New Mortgage Total$325,000
New Monthly Payment$2,162
Total Interest Paid$453,404
Housing DTI Ratio34.6%
Caution: Your housing payment would be 34.6% of gross income (exceeds 28% recommended maximum).
Buyout vs. Sell Comparison
Option A: Buyout
You Pay Spouse$75,000
You Keep HomeYes
New Monthly Payment$2,162
Selling Costs$0
Option B: Sell
Your Proceeds$57,000
Spouse Proceeds$57,000
Selling Costs (~9%)-$36,000
No New MortgageYes
Your Financial Impact
Buyout ...Sell Pr...
Refinancing Considerations: To buy out your spouse, you will typically need to refinance the mortgage in your name only. Lenders will evaluate your individual income, credit score, and debt-to-income ratio. You may need to qualify for a larger loan than your current mortgage. Consider getting pre-approved before agreeing to a buyout in your settlement.
Disclaimer: This calculator provides estimates only and does not constitute legal advice. Family law varies significantly by jurisdiction. Results are based on general guidelines and may not reflect your specific circumstances. Always consult a qualified family law attorney for advice specific to your situation.

Understanding a Marital Home Buyout

A marital home buyout occurs when one spouse purchases the other's share of the home equity during divorce. This allows one party to keep the home while fairly compensating the other for their ownership interest. The buyout process typically involves refinancing the existing mortgage into the buying spouse's name alone and paying the selling spouse their equity share.

The buyout amount equals the selling spouse's share of the home equity. For example, if a home is worth $400,000 with a $250,000 mortgage, the total equity is $150,000. In a 50/50 split, the buyout amount would be $75,000. The buying spouse would need a new mortgage of $325,000 ($250,000 existing + $75,000 buyout).

Can You Afford the Buyout?

Lenders use your debt-to-income (DTI) ratio to determine if you can afford a mortgage on your own. The housing DTI (mortgage payment divided by gross monthly income) should generally be below 28%, and your total DTI (all debts including the mortgage) should be below 36-43% depending on the loan program. Consider these factors:

  • Your individual income — You must qualify for the new mortgage on your income alone, without your spouse's contribution.
  • Credit score — A score of 620+ is typically needed for conventional loans. Higher scores get better rates.
  • Other debts — Car loans, student loans, credit cards, and child support all count toward your DTI.
  • Ongoing costs — Property taxes, insurance, maintenance, and HOA fees add to the true cost of keeping the home.
  • Alimony/child support — If you receive alimony or child support, lenders may count a portion as qualifying income. If you pay it, it increases your obligations.

Buyout vs. Selling: Which Is Better?

Both options have advantages. A buyout avoids selling costs (typically 8-10% of the home value), minimizes disruption for children, and lets you keep a home you love. However, selling provides a clean break, gives both parties liquid cash, and eliminates the risk of maintaining an expensive asset alone. Consider your long-term financial goals, emotional attachment, and ability to qualify for a mortgage independently.

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This website provides estimates for informational purposes only. This is not legal advice. Consult a qualified family law attorney for guidance specific to your situation.