Last updated October 27, 2026
How Does a Spouse Buyout of the House Work in a Florida Divorce?
Short answer: A buyout is one spouse paying the other for their share of the house, at a price you both accept, usually paid for by a refinance in the keeping spouse's name. A quitclaim deed changes the title but does not take anyone off the mortgage. Only a payoff, a refinance or the lender's written release does that.
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Key takeaways
- The buyout price is a number both owners accept; it works best when it comes from recent closed sales neither of you chose.
- A quitclaim deed transfers ownership, not the loan: both borrowers stay on the note until it is paid or released.
- Transfers between spouses incident to divorce generally trigger no gain, and the keeping spouse takes the original basis (26 U.S.C. 1041).
- The lender decides whether the refinance is approved, and your attorneys write the buyout into the agreement.
Real-estate side only. This is general information, not legal or tax advice, and no attorney-client relationship is created by reading it. PBP Real Estate, LLC is a licensed Florida real estate brokerage (License CQ1064615), not a law firm. Your family-law attorney decides the legal questions in your case, a CPA decides the tax questions, and a lender decides any refinance.
How is a spouse buyout calculated?
From the price, minus the loans, times the share, plus or minus any agreed credits. Here is a worked example with made-up numbers. It is not an estimate for any house.
| Step | Hypothetical figure |
|---|---|
| Price both owners accept | $600,000 |
| Mortgage and home equity line payoff | minus $350,000 |
| Equity | $250,000 |
| Departing spouse's share, if the agreement says half | $125,000 |
| Credits, only if the agreement or judgment provides them (s. 61.077) | plus or minus the agreed amount |
The keeping spouse then needs a new loan large enough to pay off the old one and the departing spouse's share, plus closing costs. Whether that loan is approved is the lender's decision.
Why doesn't a quitclaim deed remove a spouse from the mortgage?
Because the deed and the loan are separate contracts. The deed says who owns the house. The note says who owes the lender. Signing a quitclaim deed gives up ownership while leaving the departing spouse liable for the loan, and a late payment still shows on their credit. That is why most buyouts close with a refinance that pays the old loan off.
What tax basis does the spouse who keeps the house take?
Usually the couple's original basis. Under 26 U.S.C. 1041, no gain or loss is generally recognized on a transfer between spouses, or between former spouses when the transfer is incident to the divorce, and the receiving spouse takes the transferor's adjusted basis. That matters later, when the keeping spouse sells. A CPA tells you what it means for your numbers.
What price should a buyout use?
A price from recent closed sales that both of you can check. Gia Freer prepares a written opinion of value by hand, with the comparable closed sales attached, that both owners and both attorneys can read. The lender will usually order its own appraisal from a licensed appraiser for the refinance. If the buyout does not work out, the same opinion of value becomes the starting point for listing the house. See how the house value is decided in a divorce.
Related
- Selling a house during a divorce in Florida: the hub
- How the house value is decided
- Do both spouses have to sign?
- Selling before or after the divorce
- One agent working with both owners
One number you can both look at
Tell us whether one of you is considering keeping the house. Gia Freer, our Broker of Record, reviews it personally and replies within one business day. No automated estimate is produced, and what you share stays confidential.
Have Gia review my options or call (561) 395-8418. Prefer to read first? See how we price a home.
General information from a licensed Florida real estate brokerage; it is not legal or tax advice. Your family-law attorney decides the legal questions. We never pay attorneys for referrals.
Spouse buyouts: questions and answers
How do you calculate a spouse buyout of the house?
Start from a price both of you accept, subtract the mortgage and any home equity line, then apply the share your settlement or the court sets, plus any credits it specifically allows. Your attorneys and the lender confirm the final figure.
Does a quitclaim deed take my name off the mortgage?
No. A quitclaim deed changes who owns the house, not who owes the loan. The departing spouse comes off the mortgage only when the loan is paid off, refinanced, or the lender releases them in writing.
Is a buyout taxed in a Florida divorce?
Under 26 U.S.C. 1041, a transfer between spouses, or between former spouses incident to divorce, generally triggers no gain, and the spouse who keeps the house takes over the original tax basis. A CPA confirms how it applies to you.
What if the refinance is not approved?
Then the buyout as planned cannot close, and most agreements fall back to a sale. The lender decides whether a refinance is approved; nobody else can promise it.
Sources and legal references
This page summarizes Florida family law, real-estate law and federal tax rules for homeowners. The primary sources are below; for your own case, rely on your family-law attorney, and on a CPA for tax.
- Florida Constitution, Article X, Section 4: Homestead; exemptions — The Florida Senate
- Section 61.075, Florida Statutes: Equitable distribution of marital assets and liabilities — Florida Legislature (Online Sunshine)
- Section 61.077, Florida Statutes: Setoffs or credits upon sale of marital home — Florida Legislature (Online Sunshine)
- Section 689.15, Florida Statutes: Estates by survivorship — Florida Legislature (Online Sunshine)
- Section 475.278, Florida Statutes: Authorized brokerage relationships — Florida Legislature (Online Sunshine)
- Section 475.612, Florida Statutes: Certification of appraisers (opinion of value is not an appraisal) — Florida Legislature (Online Sunshine)
- 26 U.S.C. 121: Exclusion of gain from sale of principal residence — Legal Information Institute, Cornell Law School
- 26 U.S.C. 1041: Transfers of property between spouses or incident to divorce — Legal Information Institute, Cornell Law School
- IRS Publication 523, Selling Your Home — Internal Revenue Service
- Florida DBPR license record: PBP Real Estate, LLC, real estate corporation CQ1064615 — Florida Department of Business and Professional Regulation
- Florida DBPR license record: Gia Freer, real estate broker BK689801 — Florida Department of Business and Professional Regulation
- Florida DBPR license record: Grant Freer, real estate broker BK3077984 — Florida Department of Business and Professional Regulation