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Should You Sell or Keep the Family Home After Divorce?

April 3, 2025

By Michaele Gantz, Mediator and Founder of Consenso Mediation

Divorce brings many tough decisions, but one of the most significant is what to do with the family home. For many couples, the home represents more than just a financial asset—it’s a place filled with memories, routines, and a sense of security. Deciding whether to sell the home or keep it can be emotionally and financially complex, and the right choice depends on several factors, including affordability, long-term needs, and the ability to maintain the property.

At Consenso Mediation, we understand the weight of this decision. Through mediation, we help divorcing couples in Albany and across New York State explore their options and find solutions that work for both parties. Whether you’re considering selling, a buyout, or co-ownership for a period of time, mediation provides a neutral, structured space to discuss these choices and move forward with clarity.

Factors to Consider When Deciding the Future of the Family Home

Financial Stability

Can you or your spouse afford to maintain the home on a single income? Consider mortgage payments, property taxes, insurance, and upkeep. A home that was manageable with two incomes may become a financial strain for one person.

Emotional Ties vs. Practical Needs

While emotional attachment to the home is natural, it’s important to balance that with practical considerations. Would staying in the home bring comfort, or would it prevent you from fully moving forward?

Impact on Children

For couples with children, keeping the home may offer stability by allowing kids to stay in the same school and neighborhood. However, if keeping the home creates financial hardship, selling may ultimately be a better choice for long-term security.

Housing Market Conditions

Is this a good time to sell? If the housing market is strong, selling may provide a financial boost. If the market is down, delaying the sale or considering temporary co-ownership might be a better option.

The Pros and Cons of Selling the Home

Advantages of Selling

A fresh financial start – Selling allows both parties to divide proceeds and move forward without shared financial obligations.
No ongoing financial burden – You eliminate mortgage payments, taxes, and maintenance costs.
Simplifies the divorce process – Splitting liquid assets is often easier than negotiating ownership arrangements.
Provides emotional closure – Letting go of the home can help both parties transition to a new chapter.

Disadvantages of Selling

Emotional challenges – Saying goodbye to a home full of memories can be difficult.
Market timing risks – If the market is weak, you may have to sell for less than expected.
Potential instability for children – Moving can be stressful, requiring adjustments to a new home, school, and community.

The Pros and Cons of Keeping the Home

Advantages of Keeping

Continuity for children – Staying in the same home can provide emotional stability for kids.
Investment potential – If the home’s value is expected to rise, keeping it could be a smart financial decision.
Comfort during transition – A familiar environment may help reduce stress during a difficult time.

Disadvantages of Keeping

Financial pressure – Covering the mortgage and maintenance costs on one income can be difficult.
Complicates asset division – One spouse may need to buy out the other, which isn’t always feasible.
Future uncertainty – If financial circumstances change, the home may need to be sold later under less favorable conditions.

Alternative Solutions

If neither selling nor keeping the home outright feels like the right choice, mediation can help explore creative alternatives, such as:

Delaying the sale – Some couples agree to keep the home for a set time, allowing children to finish school or waiting for a better market.
Co-ownership – Both spouses retain ownership temporarily, sharing financial responsibilities while planning for a future sale.
Renting the home – If neither party can afford the home but selling isn’t ideal, renting can generate income while postponing a final decision.

How Mediation Can Help You Make the Best Choice

Deciding the fate of the family home is more than a financial decision—it’s an emotional and practical one. Mediation provides a neutral space where both parties can:

Discuss affordability and long-term financial impacts
Explore different options in a calm, structured setting
Ensure that both perspectives are considered fairly
Develop a solution that prioritizes financial stability and emotional well-being

Even if mediation is not the chosen resolution method, divorce coaching can help individuals prepare for these discussions, consider their options carefully, and advocate for themselves effectively during negotiations.

A Thoughtful Approach to Moving Forward

Whether you sell the home or keep it, the most important thing is making a decision that supports your long-term financial and emotional well-being. Divorce is a time of transition, and while letting go of a home can be difficult, it can also be the start of a fresh, stable future.

At Consenso Mediation, we help couples in Albany and across New York navigate these decisions thoughtfully and collaboratively. If you need guidance on this or any other aspect of your divorce, contact us today to learn how mediation or divorce coaching can help you move forward with confidence.