Should I keep the house or sell it in divorce?

It depends on whether you can afford the full carrying cost on a single income. The carrying cost includes mortgage payments, property taxes, homeowners insurance, maintenance (typically 1% of home value per year), and utilities. Many people underestimate insurance costs — which range from $600/year in Hawaii to over $10,000/year in Florida. Compare the total monthly cost of keeping the house against renting a comparable home in your area.

How much does it cost to keep the house after divorce?

Beyond the mortgage, you need to budget for property taxes (varies from 0.29% in Hawaii to 2.23% in New Jersey), homeowners insurance (national average $3,548/year, but varies dramatically by state), maintenance (approximately 1% of home value per year), and any needed repairs. Many people can afford the mortgage but are stretched thin by these additional costs.

What is a divorce buyout on a house?

A divorce buyout is when one spouse pays the other for their share of the home equity. For example, if the home equity is $200,000 and each spouse is entitled to 50%, the buying spouse needs to pay $100,000 to the other. This can be done through refinancing, cash, or offsetting with other marital assets like retirement accounts.

How are closing costs calculated when selling a house in divorce?

Closing costs when selling a home vary by state and typically range from 0.5% to 5.8% of the sale price. This includes real estate agent commissions, transfer taxes, title insurance, and recording fees. States with high transfer taxes (like Delaware at 5.8% or Pennsylvania at 4.9%) have significantly higher closing costs.

Should I keep or sell the house in a divorce?

It depends on your financial situation. Key factors include whether you can afford the mortgage, property taxes, and insurance on a single income, how much equity you have, and whether selling would free up cash for a fresh start. Financial experts recommend housing costs stay below 28-35% of gross income.

How do property taxes affect the keep-vs-sell decision?

Property taxes vary dramatically by state — from 0.28% in Hawaii to 2.4% in New Jersey. High property tax states add thousands per year to housing costs, which can tip the affordability calculation toward selling.

How much does homeowners insurance cost by state?

Homeowners insurance varies widely by state. Florida averages over $10,000/year while Oregon averages around $1,100/year. These costs significantly impact monthly housing affordability after divorce.

← Free Tools

Divorce Housing Calculator by State

Should you keep or sell the house? The answer depends heavily on your state. Property taxes, insurance costs, and home values vary dramatically — what's affordable in Ohio may be unaffordable in New Jersey. Select your state for a personalized analysis.

Alabama

Median home: $195,000
Property tax: 0.39%
Insurance: $4,637/yr

Alaska

Median home: $330,000
Property tax: 1.19%
Insurance: $1,323/yr

Arizona

Median home: $395,000
Property tax: 0.62%
Insurance: $2,605/yr

Arkansas

Median home: $175,000
Property tax: 0.62%
Insurance: $5,045/yr

California

Median home: $740,000
Property tax: 0.71%
Insurance: $1,348/yr

Colorado

Median home: $530,000
Property tax: 0.51%
Insurance: $4,075/yr

Connecticut

Median home: $380,000
Property tax: 1.98%
Insurance: $2,306/yr

Delaware

Median home: $330,000
Property tax: 0.56%
Insurance: $976/yr

District of Columbia

Median home: $640,000
Property tax: 0.56%
Insurance: $1,289/yr

Florida

Median home: $390,000
Property tax: 0.86%
Insurance: $10,240/yr

Georgia

Median home: $310,000
Property tax: 0.88%
Insurance: $2,261/yr

Hawaii

Median home: $830,000
Property tax: 0.28%
Insurance: $601/yr

Idaho

Median home: $420,000
Property tax: 0.63%
Insurance: $1,675/yr

Illinois

Median home: $270,000
Property tax: 2.18%
Insurance: $3,164/yr

Indiana

Median home: $230,000
Property tax: 0.84%
Insurance: $3,094/yr

Iowa

Median home: $200,000
Property tax: 1.52%
Insurance: $2,381/yr

Kansas

Median home: $220,000
Property tax: 1.41%
Insurance: $3,713/yr

Kentucky

Median home: $200,000
Property tax: 0.84%
Insurance: $3,233/yr

Louisiana

Median home: $205,000
Property tax: 0.55%
Insurance: $8,497/yr

Maine

Median home: $340,000
Property tax: 1.30%
Insurance: $1,424/yr

Maryland

Median home: $400,000
Property tax: 1.04%
Insurance: $2,633/yr

Massachusetts

Median home: $570,000
Property tax: 1.15%
Insurance: $2,066/yr

Michigan

Median home: $235,000
Property tax: 1.44%
Insurance: $2,206/yr

Minnesota

Median home: $330,000
Property tax: 1.10%
Insurance: $2,402/yr

Mississippi

Median home: $165,000
Property tax: 0.79%
Insurance: $5,166/yr

Missouri

Median home: $225,000
Property tax: 0.97%
Insurance: $2,994/yr

Montana

Median home: $420,000
Property tax: 0.74%
Insurance: $4,913/yr

Nebraska

Median home: $235,000
Property tax: 1.65%
Insurance: $6,269/yr

Nevada

Median home: $430,000
Property tax: 0.53%
Insurance: $1,212/yr

New Hampshire

Median home: $440,000
Property tax: 1.86%
Insurance: $1,152/yr

New Jersey

Median home: $470,000
Property tax: 2.40%
Insurance: $1,774/yr

New Mexico

Median home: $290,000
Property tax: 0.69%
Insurance: $1,787/yr

New York

Median home: $420,000
Property tax: 1.68%
Insurance: $1,556/yr

North Carolina

Median home: $320,000
Property tax: 0.78%
Insurance: $3,756/yr

North Dakota

Median home: $250,000
Property tax: 0.98%
Insurance: $2,261/yr

Ohio

Median home: $210,000
Property tax: 1.56%
Insurance: $2,076/yr

Oklahoma

Median home: $195,000
Property tax: 0.87%
Insurance: $7,683/yr

Oregon

Median home: $470,000
Property tax: 0.93%
Insurance: $1,083/yr

Pennsylvania

Median home: $270,000
Property tax: 1.53%
Insurance: $2,334/yr

Rhode Island

Median home: $400,000
Property tax: 1.53%
Insurance: $2,090/yr

South Carolina

Median home: $275,000
Property tax: 0.57%
Insurance: $3,103/yr

South Dakota

Median home: $280,000
Property tax: 1.28%
Insurance: $3,615/yr

Tennessee

Median home: $290,000
Property tax: 0.64%
Insurance: $2,931/yr

Texas

Median home: $290,000
Property tax: 1.68%
Insurance: $6,854/yr

Utah

Median home: $480,000
Property tax: 0.58%
Insurance: $1,456/yr

Vermont

Median home: $350,000
Property tax: 1.83%
Insurance: $1,054/yr

Virginia

Median home: $380,000
Property tax: 0.80%
Insurance: $2,679/yr

Washington

Median home: $570,000
Property tax: 0.93%
Insurance: $1,475/yr

West Virginia

Median home: $145,000
Property tax: 0.58%
Insurance: $1,719/yr

Wisconsin

Median home: $270,000
Property tax: 1.68%
Insurance: $1,388/yr

Wyoming

Median home: $310,000
Property tax: 0.57%
Insurance: $1,891/yr

Why housing costs matter in divorce

The marital home is often the largest asset in a divorce and the most emotional decision. Keeping the house means taking on the full mortgage, property taxes, insurance, and maintenance on a single income. Many people underestimate these costs and end up house-poor.

Financial experts recommend that total housing costs (mortgage, property tax, insurance, maintenance) stay below 28–35% of your gross monthly income. Our state-specific calculators use actual property tax rates, insurance costs, and median home values to give you a realistic picture.

Related resources

Can I Afford to Keep My House? →

Quick keep-vs-sell calculator

Alimony Calculator →

Estimate spousal support by state

Child Support Calculator →

Estimate child support by state

Settlement Calculator →

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