Divorce Buyout Calculator: Keep the House or Sell?
Compare four ways to settle the home in a divorce: refinance to buy out your spouse, buy out plus cash-out, keep the current loan with a second mortgage, or sell. See each spouse's share, the loans, LTV and monthly payment side by side.
Get Started in 3 Steps
How to Use the Divorce Buyout Calculator
Enter the Home and Split
Enter the home's value, the current mortgage balance and the departing spouse's share of the equity. Choose whether to deduct selling costs before splitting.
Set the Refinance and Assumption Terms
Use the 6.999% default rate or your quote, pick a 30- or 15-year fixed term and adjust closing costs (3% of the loan by default). For the assumption, enter your current rate, years left and a second-mortgage rate.
Compare the Four Options
See what each spouse receives, the loan amounts, LTV, blended rate and monthly payment for a buyout refinance, a buyout with cash-out, an assumption with a second loan, and a sale with 7% selling costs.
Compare Your Options: Buyout, Cash-Out, Assumption or Sale
Divorce Buyout Calculator
Refinance to buy out your spouse, add cash-out, keep the current loan, or sell
The home & your equity
Refinance terms
Or keep the current loan (assumption)
FHA loans are assumable. The keeping spouse applies with the servicer and must qualify; once approved, ask for a formal release of liability for the departing spouse.
The second loan uses the same 3% closing cost estimate, rolled into the loan. Second loan needed: $206,186.
If you sell instead
Your four options
The short version
A buyout pays the departing spouse $200,000, versus $173,750 from a sale. Keeping the home avoids $35,490 in net transaction costs compared with selling, for a new payment of $3,772 a month.
Keeping the 3% loan and adding a $206,186 second loan costs $3,449 a month at a blended 5.04% rate, $323 less than the buyout refinance.
Buyout refinance
Departing spouse receives
$200,000
With the buyout written into the divorce decree, many conventional loans price this as a rate-and-term refinance, up to 95% LTV on a primary home.
Buyout + cash-out
Keeping spouse receives in cash
$25,000
Taking cash beyond the buyout makes this a cash-out refinance: usually a higher rate and an 80% LTV limit.
Assume + second loan
Monthly payment, both loans
$3,449
Compare with the buyout refinance at 6.999%: $323 a month less. Check the blends with our blended rate calculator.
Sell the home
Net proceeds to split
$347,500
No new loan, and both spouses walk away with cash. Neither keeps the home.
Where the equity goes
The keeping spouse's amount is home equity plus any cash-out, minus closing costs paid in cash.
- Departing spouse
- Keeping spouse
- Closing or selling costs
In words: the departing spouse receives $200,000 from a buyout refinance, the same with cash-out or an assumption, and $173,750 from a sale. The keeping spouse ends up with $182,990 in equity after a buyout refinance, $182,216 in equity and cash with cash-out, $193,814 after an assumption, and $173,750 in cash from a sale. Transaction costs are $17,010, $17,784, $6,186 and $52,500.
Long-term cost of keeping the home
The keeping spouse must qualify for the new loan alone. Spousal and child support can count as income once it is documented and set to continue for at least three years.
Defaults are examples: a 6.999% rate, closing costs of 3% of the loan amount, selling costs of 7%, no taxes or insurance, and for the assumption, a 3% FHA loan with 25 years left and an 8.5% second loan. Replace them with your own numbers.
Estimates for education only. This is not a Loan Estimate, a commitment to lend, or an offer of credit. Rates, closing costs and selling costs are examples; actual figures depend on credit, loan type, property and market. LTV limits shown are typical conventional limits for a 1-unit primary residence, and the 90% combined limit is typical for second mortgages and HELOCs; FHA, VA and non-QM programs differ. Assumptions require servicer approval, and HELOC rates are usually variable; the second loan is modeled as a fixed-rate amortizing loan. Rate-and-term pricing on a buyout requires the buyout terms in the divorce decree or settlement agreement. Taxes, prepaid interest and escrow reserves are not included in closing costs. How equity is divided, and whether selling costs are deducted, is set by your settlement; Lumen Mortgage does not provide legal or tax advice. Lumen Mortgage · NMLS #1498678 · Licensed in Oregon & California. Equal Housing Lender.
Should I Buy Out My Spouse or Sell the House?
Compare all four options with the same numbers. On a $750,000 home with a $350,000 balance and a 50/50 split, the buyout is $200,000. Refinancing it into a $567,010 loan at 6.999% costs $3,772 a month. If the current loan is a 3% FHA or VA loan you can assume, keeping it and adding a second mortgage costs about $3,449 a month at a 5.04% blended rate. Selling at 7% costs leaves $173,750 for each spouse, and nobody keeps the home.
Best for: Divorcing homeowners in Oregon and California deciding whether one spouse keeps the home or the couple sells, and the attorneys and mediators helping them
How It Works
Understanding the Divorce Buyout Calculator
The calculator compares four outcomes from the same inputs. In a buyout refinance, the keeping spouse takes a new loan for the current balance plus the departing spouse's share of the equity. A buyout with cash-out adds extra cash for the keeping spouse. In an assumption, the keeping spouse keeps the existing loan and its rate and pays the buyout from savings and a second mortgage or HELOC. In a sale, the home sells at the value you enter, and selling costs and the payoff come out before the split.
Closing costs are a percentage of the new loan amount, 3% by default, and apply to the refinance and to any second loan. When they're rolled in, the loan is sized so the costs come out of it: (balance + buyout + cash-out) ÷ (1 − closing cost %). Taxes and insurance start at $0 so you can compare principal and interest only; add them to see the full payment.
Worked example at the defaults: a $750,000 home, a $350,000 balance and a 50/50 split make a $200,000 buyout. The buyout refinance is a $567,010 loan (75.6% LTV) at $3,772 a month on a 30-year fixed at 6.999%, or $5,096 on a 15-year. Adding $25,000 of cash-out raises the payment to $3,943. Keeping a 3% loan with 25 years left and adding a $206,186 second mortgage at 8.5% for 20 years costs $3,449 a month, a 5.04% blended rate. Selling instead costs $52,500 at 7% and leaves $347,500 to split. For the rules behind each option, see our guide to refinancing or assuming a mortgage after divorce.
Who Gets the House in a Divorce in Oregon and California?
Neither state automatically awards the house to one spouse. California splits marital property 50/50, Oregon splits it in whatever way a court finds fair, and in both states most couples decide for themselves who keeps the home.
California is a community property state. A home bought during the marriage is generally community property, and the community estate is divided equally. A home one spouse owned before the marriage, or received as a gift or inheritance, is usually separate property, though mortgage payments made with marital income can give the other spouse a share. Either spouse can keep the home by buying out the other's half, or the court can order a sale. With minor children, a court can also defer the sale so they can stay in the home for a time.
Oregon divides property equitably, meaning what the court finds "just and proper," not automatically 50/50. Courts start from the presumption that both spouses contributed equally to property acquired during the marriage, then weigh factors such as each spouse's finances and the children's needs. The home can go to one spouse with an equalizing payment to the other, or be sold.
The calculator helps you test whether a buyout is affordable before you agree. This is general information, not legal advice. Your divorce attorney or mediator can explain how the rules apply to your situation.
How Is a Divorce House Buyout Calculated?
A buyout pays the departing spouse their share of the equity: $200,000 on a $750,000 home with a $350,000 balance and a 50/50 split. The formula is (home value − mortgage balance − other liens) × the departing spouse's percentage.
Some settlements first subtract the selling costs the keeping spouse avoids by not selling (7% would be $52,500 here), which lowers the buyout to $173,750. The keeping spouse then pays the buyout from a refinance, savings, a second mortgage, or other settlement assets. Here's how the four options compare at the calculator's defaults:
| Option | Departing spouse gets | New loan(s) | LTV | Monthly payment |
|---|---|---|---|---|
| Buyout refinance | $200,000 | $567,010 | 75.6% | $3,772 |
| Buyout + $25,000 cash-out | $200,000 | $592,784 | 79.0% | $3,943 |
| Assume 3% loan + second mortgage | $200,000 | $350,000 + $206,186 at 8.5% | 74.2% combined | $3,449 |
| Sell (7% selling costs) | $173,750 | None | None | None; keeping spouse also gets $173,750 |
How the Calculator Prices a Buyout vs. a Cash-Out Refinance
The calculator checks the buyout refinance against a 95% LTV limit and the cash-out scenario against 80%. A buyout written into the divorce decree can usually be priced as a rate-and-term refinance on a conventional loan, while any extra cash for the keeping spouse makes it a cash-out refinance, typically at a higher rate. In the table above, adding $25,000 of cash-out takes the loan to 79.0% LTV and raises the payment by $171 a month. Our guide to refinancing or assuming a mortgage after divorce explains the decree language lenders need for rate-and-term pricing.
Modeling an Assumption vs. a Refinance
If your current loan has a low rate, compare keeping it against a refinance before you decide. Keeping a 3% loan with 25 years left and funding the buyout with a $206,186 second mortgage at 8.5% costs $3,449 a month at a 5.04% blended rate, $323 less than refinancing at 6.999%. Choose your loan type in the calculator to see whether it can be assumed: FHA, VA and USDA loans generally can, with servicer approval, and most conventional loans can't. Assuming also requires a written release of liability to take your ex off the loan; see our guide to refinancing or assuming a mortgage after divorce for how releases work and what happens if you can't refinance. Our blended rate calculator runs the same blend for any mix of loans.
Will You Qualify for the New Payment?
The keeping spouse qualifies alone, so check the calculator's payment against your income before you agree to a buyout. As a rough guide, many loans allow total monthly debts, including the new payment, of about 45% to 50% of gross income; our DTI calculator shows where you land. Documented spousal or child support can count as income, and settlement assets or bank deposits can qualify a spouse with little W-2 income through asset depletion or a bank statement loan. Our divorce mortgage loans page explains how we qualify divorcing borrowers on one income.
Which Home Value to Use: Divorce Appraisals
Use the value both spouses agree on for the buyout, but plan for the lender's appraisal to set the loan. A settlement appraisal is ordered by the spouses or their attorneys, often from one agreed-on appraiser, to set the buyout amount. The lender's appraisal is ordered for the refinance and determines the loan amount and LTV.
If the lender's appraisal comes in lower, the buyout in your agreement doesn't change, but the loan-to-value ratio rises and the loan may no longer fit under the 95% buyout or 80% cash-out limit. On the example home, a $700,000 appraisal instead of $750,000 would push the buyout refinance from 75.6% to 81.0% LTV: still fine for a decree buyout, but too high to add any cash-out. Agree in the settlement on which appraisal controls and what happens if the lender's value comes in lower, and enter both values in the calculator to see whether the buyout still works.
Ready to apply?
Numbers look right? Explore our Divorce Mortgage Loans page for eligibility details, rates, and next steps.
About This Calculator
What the Divorce Buyout Calculator is For
When a marriage ends, the home usually goes one of four ways: one spouse refinances and buys the other out, refinances for the buyout plus extra cash, keeps the existing loan and funds the buyout with savings or a second mortgage, or the couple sells and splits the proceeds. This calculator runs all four from the same numbers. The buyout is the departing spouse's share of the equity, optionally reduced by the selling costs the keeping spouse avoids. Refinance defaults are a 6.999% 30-year fixed rate (15-year optional) with closing costs of 3% of the loan, rolled in or paid in cash. The assumption scenario keeps your current rate, adds a second loan for the rest of the buyout and shows the blended rate, with notes on which FHA, VA, USDA and conventional loans can be assumed. Selling costs default to 7% for commissions, title and escrow, and property taxes and insurance start at $0 and can be added. Each option is checked against typical limits: 95% LTV for a buyout written into the decree, 80% for cash-out and 90% combined for a second mortgage.
Common Use Cases
- Deciding whether to keep the home or sell it during a divorce
- Estimating the buyout owed to a departing spouse and the new payment
- Comparing a refinance with assuming a low-rate FHA, VA or USDA loan
- Testing how much extra cash-out fits under the 80% LTV limit
- Comparing what each spouse walks away with after selling costs
Ready to turn numbers into a loan?
Or call 503-966-9255Common Questions
Divorce Buyout Calculator — Frequently Asked Questions
Keep Exploring
Related Calculators
Refinance Calculator
Model a rate-and-term refinance using your actual loan history. Enter original amounts, rates, terms, and first payment dates to see your true remaining balance, compare it to proposed new terms, and calculate the exact break-even point on closing costs.
Mortgage Calculator
Estimate your monthly principal & interest payment, compare 15- vs. 30-year terms, and see total interest paid over the life of the loan
Escrow & Impound Calculator
Estimate the property tax and homeowners insurance due at closing on a California or Oregon purchase or refinance. Compare full impounds, taxes only, insurance only, and no impounds, with CA supplemental tax estimates.
Debt-to-Income Calculator
Calculate your front-end housing ratio and back-end total DTI using gross income and all monthly obligations
From the Blog
Further Reading
RefinancingRefinancing or Assuming a Mortgage After Divorce: A 2026 Oregon & California Guide
When divorce involves a home, the mortgage decision often shapes the entire settlement. Whether to assume the existing loan, refinance into a Fannie Mae buyout priced as rate-and-term (not cash-out), use a bridge loan, or qualify with spousal and child support — each path has its own timeline, documentation requirements, and pricing implications. This guide walks through every option available to Oregon and California borrowers, the loan-type differences that matter, and why engaging a lender before the decree is finalized is one of the highest-leverage decisions in the entire process.
First-Time BuyersFirst-Time Home Buyer Guide for Nurses: 3% Down and No PMI on Loans up to $2M
Buying your first home as a nurse? Here's how a nurse home loan works, how much you need down, how offer letters, travel contracts and student loans are handled, and a step-by-step plan from pre-approval to closing.
Home BuyingShould You Rent or Buy a Home in Oregon or California? The 2026 Break-Even Guide
Renting isn't throwing money away, and buying isn't automatically an investment. Here's what each really costs in Oregon and California, how rent caps, Prop 13, Measure 50 and the 2026 tax rules change the math, and two worked examples showing the year buying pulls ahead.
All calculator results are estimates for informational purposes only and do not constitute a loan commitment or guarantee of any specific rate or terms. Actual loan terms will depend on creditworthiness, property type, and market conditions. Lumen Mortgage Corporation · NMLS #1498678 · Licensed in Oregon & California · 920 SW 6th Ave, Suite 1200, Portland, OR 97204.