# How much is my divorce buyout?

Works out the equity in a shared home, the buyout owed to the spouse who leaves, and the new mortgage and monthly payment for the spouse who keeps the home.

- Page: https://www.acalculator.org/finance/divorce-buyout-calculator
- JSON spec: https://www.acalculator.org/finance/divorce-buyout-calculator.json
- Version: 8056e5c1c9f6

## Default answer

Example with the default inputs (Home value $450,000.00, Mortgage balance $250,000.00, Leaving spouse’s share of the equity 50%, Selling costs to deduct 0%, New mortgage rate 6.5%, New mortgage term (years) 30, Closing costs $0.00, Pay the closing costs In cash): The buyout is $100,000.00; the new mortgage of $350,000.00 costs $2,212.24 a month.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| value | Home value | What the home is worth now, for example from an appraisal. |
| owed | Mortgage balance | What is still owed on all mortgages and home equity loans on the home. |
| share | Leaving spouse’s share of the equity | The part of the equity the spouse who leaves receives, often 50% (set by your agreement or court). |
| sell | Selling costs to deduct | Some agreements take the costs of a notional sale (agent fees and closing costs) off the value first. Leave 0 if yours does not. |
| rate | New mortgage rate | The fixed yearly rate on the loan that pays off the mortgage and the buyout. |
| years | New mortgage term (years) | The length of the new mortgage, for example 15 or 30 years. |
| costs | Closing costs | The costs of the new mortgage. |
| roll | Pay the closing costs | Pay the closing costs in cash, or add them to the new mortgage. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| buyout | Buyout amount | Equity × the leaving spouse’s share. |
| equity | Equity | Home value − mortgage balance − selling costs. |
| sellCosts | Selling costs deducted | Home value × selling cost percent. |
| kept | Equity you keep | Equity − buyout. |
| mortgage | Mortgage paid off | The mortgage balance the new loan pays off. |
| loan | New mortgage | Mortgage balance + buyout, plus closing costs when added to the loan. |
| ltv | Loan-to-value | New mortgage ÷ home value. Lenders set a maximum for a refinance that takes cash out. |
| payment | New monthly payment | Principal and interest on the new mortgage: L × r ÷ (1 − (1 + r)^−n). |
| interest | Interest on the new mortgage | Payment × months − new mortgage. |

## Method

equity = value − mortgage balance − value × selling costs %; buyout = equity × share %; new mortgage = balance + buyout (+ closing costs if added); payment = L × r ÷ (1 − (1 + r)^−n), r = rate ÷ 1200, n = years × 12.

## Assumptions

- The equity is split by the share you type; your agreement or court order decides the real split.
- The spouse who stays refinances once to pay off the mortgage and pay the buyout in cash.
- Closing costs are paid in cash unless added to the loan. Taxes, insurance and mortgage insurance are not included.
- Property transferred between spouses incident to divorce is generally not taxed (IRS Publication 504); the calculator counts no taxes.

## Worked examples

1. value = $450,000.00, owed = $250,000.00, share = 50%, sell = 0%, rate = 6.5%, years = 30, costs = $0.00, roll = cash gives equity = $200,000.00, buyout = $100,000.00, loan = $350,000.00, payment = $2,212.24, interest = $446,405.71. Source: Consumer Financial Protection Bureau, What is a home equity loan? (equity is the amount the property is worth minus any existing mortgage), https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/ (retrieved 2026-10-05).
2. value = $500,000.00, owed = $300,000.00, share = 50%, sell = 6%, rate = 6%, years = 30, costs = $8,000.00, roll = loan gives sellCosts = $30,000.00, equity = $170,000.00, buyout = $85,000.00, loan = $393,000.00, ltv = 78.6%, payment = $2,356.23. Source: Consumer Financial Protection Bureau, What is a home equity loan? (equity is the amount the property is worth minus any existing mortgage), https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/ (retrieved 2026-10-05); Internal Revenue Service, Publication 504, Divorced or Separated Individuals: Property Settlements, Transfer Between Spouses (property transferred incident to divorce is generally not subject to gain or loss), https://www.irs.gov/publications/p504 (retrieved 2026-10-05).
3. value = $300,000.00, owed = $0.00, share = 40%, sell = 0%, rate = 0%, years = 10, costs = $0.00, roll = cash gives equity = $300,000.00, buyout = $120,000.00, loan = $120,000.00, payment = $1,000.00, ltv = 40%.

## FAQ

### How is a divorce buyout calculated?

Find the equity, the home value minus what is owed on it, then multiply by the leaving spouse’s share. A $450,000 home with $250,000 owed has $200,000 of equity; a 50% share is a $100,000 buyout.

### Should selling costs come off the value first?

Some agreements deduct the costs a sale would have had, such as agent fees, because the leaving spouse is spared them; others do not. Type the percent your agreement uses, or 0.

### How do I pay a buyout?

Often by refinancing: a new mortgage pays off the old one and pays the buyout in cash. The calculator shows that new loan, its loan-to-value, and the monthly principal and interest.

### What loan-to-value can I refinance at?

Each lender and loan program sets a maximum loan-to-value for a refinance that takes cash out, and you must keep the rest of the value as equity. Ask your lender for its limit and compare it with the loan-to-value shown here.

### Is a divorce buyout taxed?

Property transferred between spouses incident to a divorce is generally not subject to gain or loss (IRS Publication 504). A later sale can be taxed; ask a tax professional.

### Is the equity always split 50/50?

No. The split depends on your agreement, state law and the court. Type the share that applies to you.

## Sources

- Consumer Financial Protection Bureau, What is a home equity loan? https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/ (retrieved 2026-10-05)
- Internal Revenue Service, Publication 504, Divorced or Separated Individuals: Property Settlements. https://www.irs.gov/publications/p504 (retrieved 2026-10-05)