What Happens To The Marital Home In An Uncontested Divorce In Westchester County, NY

In this article, you can discover…

• How property is divided in a New York uncontested divorce.
• Whether it’s possible to co-own a home together for your children’s sake.
• What happens when you can’t agree on your home’s value.

How Is Home Ownership Divided In An Uncontested Divorce?

In an uncontested divorce in New York, there are two main ways to handle the division of a home:

Mutual Agreement Without Lawyer Involvement

If both spouses agree to sell the house, choose a broker, and evenly split the proceeds, there’s no need to involve attorneys. The sale and division can proceed, and the agreement can later be incorporated into the formal settlement. This is often compared to splitting a joint bank account, something that is somewhat straightforward if there’s mutual understanding.

Lawyer-Involved Negotiation

If disputes arise, be it over credit for “separate property” contributions or the mortgage payment, attorneys should be involved in negotiating and formalizing terms. These may include interim stipulations or detailed settlement clauses.

With the housing market in the New York City area being as active as it is (as of Spring, 2025), properties often move from listing to contract in a matter of 2-3 months. If parties agree to sell, it’s often advisable to move quickly to take advantage of favorable market conditions.

What If A Home Is Only In One Spouse’s Name?

In New York, title ownership doesn’t determine marital interest. If the home was purchased during the marriage, it is generally considered marital property regardless of whose name is on the deed. Even if one spouse purchased the home before the marriage and kept the title solely in their name, the non-titled spouse may still have a claim to active appreciation. This can include:

• Mortgage principal reduction during the marriage
• Significant improvements made during the marriage

How Is Equity In The Home Calculated During Divorce?

Equity is typically calculated by subtracting the outstanding mortgage balance from the current market value of the property. There are two main approaches:

Formal Appraisal

This is when a licensed appraiser provides a professional market value. This method is highly recommended because it offers an objective, well-documented valuation that can be used to support fair negotiations, prevent disputes, and ensure both parties have a clear understanding of the home’s true worth.

Informal Estimate

Alternatively, you may use online tools like Zillow or rely on local tax assessment values. While convenient and inexpensive, these methods may be inaccurate – sometimes by tens or even hundreds of thousands of dollars. Relying on them in a buyout situation may result in one party significantly overpaying or under-receiving.

Can We Sell The House And Split The Proceeds?

New York law allows couples broad discretion in crafting their own agreements, so nothing holds you back from selling the house and splitting the proceeds, provided both parties agree. There are generally three options for handling the home:

Sell And Split

This is the simplest method. The net proceeds are divided and possibly adjusted for contributions like down payments from separate or inherited funds.

Buyout

One spouse buys the other’s share, typically based on the appraised value.

Deferred Sale

The sale or buyout is postponed, often until the youngest child turns 18 or completes college.

All of these options are valid and can be customized to a couple’s specific circumstances.

Is It Possible To Co-Own The Home After Divorce For The Children’s Sake?

New York law doesn’t restrict creative custody or housing solutions. So long as both of you are willing and able to cooperate, you’re free to set up a shared ownership arrangement that works for your situation. There are two common approaches to doing this:

One Spouse Remains

One spouse stays in the home, and both parties agree on how to handle ongoing costs like mortgage, taxes, and utilities. Affordability is key, both for the staying spouse and for the departing spouse, who may also have new housing expenses.

Nesting Arrangement

Both spouses alternate living in the home while also maintaining separate residences. This presumes shared custody and is quite involved, demanding strict cooperation and financial management.

What If We Disagree About The Home’s Value?

It’s not uncommon for spouses to disagree on the value of their home even after getting an appraisal. One party might feel the appraisal is too low or too high, primarily if the valuation affects a potential buyout or division of proceeds.

In these cases, there are practical steps you can take without immediately heading to court:

• Get A Second Appraisal: One appraisal isn’t necessarily the final word. Just as lawyers can disagree on interpretations of the law, appraisers can have different opinions on value.
• Consider A Third Appraisal: If the second appraisal differs significantly from the first, some couples agree to bring in a third appraiser as a tie-breaker.

Doing this can resolve valuation disputes and is far less costly than litigation. However, if you still can’t agree after multiple appraisals, the only way to resolve the issue is at trial. At that point, appraisers submit formal reports and testify under oath, subject to cross-examination.

This process can be lengthy and expensive. In one recent case I handled, the appraiser was on the witness stand for three days, and hours of attorney prep time were required beforehand. The Judge ultimately rejected the appraiser’s report entirely (which benefitted my client), but not before significant time and money were spent.

Before going down that path, it’s important to consult your attorney to weigh the cost of litigation against the potential financial gain or loss. In many cases, resolving the dispute privately through negotiation and multiple appraisals is the more practical route.

Do I Need A Real Estate Appraisal As Part Of My Divorce Process?

An appraisal is the best and most accurate method, especially in a buyout situation. However, if both parties are comfortable relying on estimates, you don’t necessarily need one. If selling the house, the broker typically assesses the home’s market value and sets the listing price.

How Is The Mortgage Handled If One Spouse Keeps The Home?

When one spouse keeps the home, generally they should refinance the mortgage in their name alone. Leaving the other spouse’s name on the mortgage, especially when they no longer own or live in the property, is strongly discouraged.

Why? Because doing so ties that person to a financial obligation they no longer control. Even if they’re not on the deed, their name on the mortgage still makes them legally responsible for the loan.

There are some exceptions, however. In unique arrangements like nesting, where both spouses alternate living in the home, shared responsibility for the mortgage might make sense. Another option is to defer the buyout or sale. However, this delay typically requires negotiation and compromise.

If a spouse agrees to keep their name on the mortgage during a deferral period, they should understand the implications. Mortgage lenders will still count that debt against them when they apply for financing elsewhere, even if they argue the house isn’t theirs anymore. The bank will only see the liability, not the context.

To qualify for a new mortgage, the lender must confirm that person could theoretically cover:

• 100% of the existing mortgage
• All of their personal living expenses
• 100% of any new mortgage they’re applying for

If their income can’t meet that threshold, they’ll likely be denied. That’s why it’s imperative to consider the long-term financial consequences before agreeing to keep your name on a mortgage you no longer benefit from.

How Do We Divide The Cost Of Improvements Or Repairs Made Before The Divorce?

In most cases, you don’t. If repairs or improvements were made before the divorce was filed, those expenses are typically considered marital, meaning they came from shared resources and aren’t separately reimbursed.

However, there can be exceptions based on fairness and mutual agreement. For example, if one spouse used funds from a separate account just before the divorce, especially during a time of attempted reconciliation, mediation, or delayed filing, they may request a credit for those contributions.

At the end of the day, it’s a negotiation issue, not a requirement. Nevertheless, offering a credit without getting anything in return is usually not advisable from a bargaining perspective.

What Are The Tax Consequences Of Keeping Or Selling The Home?

If you keep a marital home in an uncontested divorce in New York, there are generally no immediate tax consequences, except for deciding who gets to claim the mortgage interest deduction.

But if you sell the home, things can get more complex. You’ll need to determine whether any capital gains taxes will apply. In most cases, if the property is a primary residence and the profit is below the IRS threshold, you likely won’t owe capital gains taxes.

However, these rules can change, and exceptions may apply, so it’s essential to consult an accountant before finalizing your agreement. Don’t assume your attorney can handle the tax questions, though. Divorce lawyers are not tax experts, so you should always speak to an accountant to:

• Forecast potential tax liability
• Understand how profits from the sale might affect your overall finances
• Decide whether anything should be added to your settlement agreement

Failing to address tax issues upfront can lead to costly surprises. The IRS won’t care if your divorce judgment is silent on who pays the taxes. And in most cases, divorce courts won’t go back and fix your omission. If you leave it unaddressed, you may find yourself negotiating directly with your ex—or worse, with the IRS years down the road.

Still Have Questions? Ready To Get Started?

For more information on a marital home in an uncontested divorce in Westchester County, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (347) 797-1188 today.