Key Questions That Protect Real Estate Assets in Divorce

Divorce is as much a financial process as it is a legal one, and for many couples, their most valuable asset is their home. As a Certified Divorce Real Estate Expert (CDRE) with 25 years of experience, I’ve seen how the right questions—asked early—can make all the difference in the outcome of a case. While attorneys handle the legal process, my role is to ensure real estate decisions are made with clarity, fairness, and long-term financial stability in mind.

Discovery plays a crucial role in gathering information about assets, liabilities, and income—but how often do attorneys and their clients take a deep dive into the real estate details? Asking the right questions can prevent disputes, eliminate surprises, and ensure the home is handled in a way that supports the best possible outcome for both parties.

Key Questions to Ask About Real Estate in Divorce

1. Who Holds Legal and Financial Ownership of the Home?

• Is the home titled in both spouses’ names, or just one?
• Who is on the mortgage, and who has been making the payments?
• Are there any liens, second mortgages, or home equity loans attached to the property?

Why It Matters:
Title and mortgage obligations are separate. A spouse may be listed on the title but not on the mortgage, or vice versa. Understanding this distinction early helps avoid conflicts over responsibility and future liability.

2. What Is the True Market Value of the Home?

• Has the home been professionally appraised, or is the value based on online estimates?
• Have comparable homes in the area recently sold, and at what price?
• How does the home’s condition affect its marketability?

Why It Matters:
Emotional attachment can cloud judgment. A neutral, court-admissible appraisal from a qualified professional—not just a real estate agent’s opinion—ensures that both parties have an accurate valuation before making financial decisions.

3. What Are the Costs of Keeping vs. Selling the Home?

• If one spouse wants to keep the home, can they afford the mortgage, taxes, insurance, and upkeep on a single income?
• Will refinancing be necessary, and is it financially feasible?
• What are the estimated costs of selling, including agent commissions, repairs, and potential capital gains taxes?

Why It Matters:
Keeping the home can be an emotional decision, but it should also be a sustainable one. A financial reality check upfront helps prevent future struggles, such as foreclosure or forced sales under poor market conditions.

4. What Are the Tax Implications?

• Will selling the home trigger capital gains taxes?
• If one spouse stays in the home, how will property taxes change over time?
• Are there tax benefits to one party buying out the other?

Why It Matters:
Taxes often get overlooked until it’s too late. A well-informed real estate strategy can help minimize unexpected financial burdens down the road.

5. How Will Court Orders Impact the Home Sale Process?

• If the court orders the home to be sold, are there clear deadlines and procedures in place?
• Who will handle maintenance, mortgage payments, and showing the home until it sells?
• How will net proceeds be divided, and what happens if there are disagreements along the way?

Why It Matters:
Ambiguous orders lead to disputes. A well-structured agreement—often with guidance from a CDRE—can ensure the sale process moves forward smoothly and equitably.

Why These Questions Matter

Too often, real estate decisions in divorce are made reactively instead of proactively. By addressing these key questions during the discovery phase, attorneys can avoid costly delays and disputes while ensuring their clients make informed decisions about their home and financial future.

As a CDRE, my role is to provide expert guidance, ensure the home is properly valued, and help facilitate a sale when necessary. A smooth, well-planned real estate process doesn’t just protect financial assets—it helps divorcing spouses move forward with clarity and confidence.

If you’re an attorney handling a case with real estate involved, let’s talk about how a Certified Divorce Real Estate Expert can support the process and help your clients achieve the best possible outcome.