Divorcing Homeowners Risk $150,000 Buyouts as Keeping the Family House Strains Single-Income Budgets
Updated
Updated · The Washington Post · Oct 31
Divorcing Homeowners Risk $150,000 Buyouts as Keeping the Family House Strains Single-Income Budgets
3 articles · Updated · The Washington Post · Oct 31
Summary
$150,000 buyouts and refinancings can turn the family home into a costly burden after divorce, often leaving one spouse with sharply higher monthly payments on a single income.
Lawyers and financial experts said many people treat the house only as an asset, even though upkeep, taxes, insurance and repairs can drain cash while forcing trade-offs with retirement accounts or savings.
One New Jersey mother refinanced to buy out her ex-husband’s share after an 18-year marriage, while a Baltimore woman saw her mortgage jump from about $1,400 to $2,300 after refinancing to remove her ex.
The risk is rising as housing wealth becomes less liquid: median U.S. home net value climbed 5.1% to $230,000 in 2025, but the share of equity-rich mortgaged homes fell to 41.1% from 47.4% a year earlier.
Experts recommend running three- to five-year budget projections, weighing home equity against retirement assets, and resisting emotional decisions if keeping the house means sacrificing long-term financial stability.