When one spouse keeps the house, the judgment normally sets forth a date when he or she refinances the house and buys out the other spouse’s equity. This removes the other spouse from any financial obligation. Similarly, the judgment provides for terms and conditions for the vacating spouse to transfer title.
A divorcing couple often wants one spouse to stay in the marital home after the divorce even though it will not be possible to refinance the home until a later date, particularly when children are involved. The parties must agree to the value of the home, or stipulate an appraisal, with the spouse who is going to stay in the home buying out the other spouse’s interest.