Every Way to Buy Out a Spouse in a Georgia Divorce

When one spouse wants to keep the marital home in a Georgia divorce, there are several ways to structure the buyout. The right approach depends on the mortgage, the equity, and what both parties agree to — or what a Georgia court orders.

Below is a high-level overview of every buyout method that may be available under Georgia law. Each situation is different, so always work with a Georgia family law attorney for the legal structure and a lender for the financing details.

1. Refinance into One Spouse's Name

MOST COMMON METHOD

The spouse keeping the home applies for a new mortgage in their name only. The existing joint mortgage is paid off, which releases the departing spouse from the loan. The departing spouse receives their share of equity at closing — either from the new loan proceeds or other agreed-upon means.

This is the cleanest approach because it fully separates both the title and the mortgage. A lender can confirm whether the spouse keeping the home qualifies on their own.

2. Cash-Out Refinance

Similar to a standard refinance, but the new mortgage is for more than what is owed. The extra cash is used to pay the departing spouse their equity share. This combines two steps into one — removing the other spouse from the mortgage and funding the buyout payment at the same time.

The spouse keeping the home must qualify for the higher loan amount. A lender can walk through the specific requirements and limits.

3. Mortgage Assumption

Some loans allow one spouse to take over the existing mortgage without refinancing. This preserves the current interest rate and loan terms — which can be a significant advantage if the existing rate is lower than current market rates.

Not all loans are assumable — it depends on the loan type and lender. The remaining spouse still has to qualify, and a separate arrangement is needed to pay the departing spouse their equity share. A lender can confirm whether assumption is an option for your specific loan.

4. Home Equity Loan or HELOC

The spouse keeping the home takes out a second loan — either a home equity loan (lump sum) or a home equity line of credit (HELOC) — to pay the departing spouse their share of equity. The original mortgage stays in place.

This can work when the existing mortgage has a favorable rate that the homeowner wants to keep. However, it does not remove the departing spouse from the original mortgage unless combined with a refinance or assumption. Both parties should understand the implications of remaining on a joint loan.

5. Offset with Other Marital Assets

Instead of paying cash, the spouse keeping the home gives up other marital assets of equal value — such as retirement accounts, investment accounts, vehicles, or other property. The departing spouse receives assets worth their share of the home equity.

This avoids the need for a cash payment, but both sides need to understand the actual value of what is being traded. Not all assets are worth the same after taxes. Your attorney and financial advisor can help evaluate these trade-offs.

6. Promissory Note (Spouse-to-Spouse Financing)

The spouse keeping the home signs a promissory note agreeing to pay the departing spouse their equity share over time — essentially a private payment plan between the two parties. Payments can be structured monthly, quarterly, or as a lump sum by a specific date.

This can be useful when the keeping spouse does not have enough cash or borrowing power right now. The agreement should be part of the divorce decree. Your attorney structures the specific terms and protections.

7. Retirement Account Offset (QDRO)

A Qualified Domestic Relations Order (QDRO) allows a portion of one spouse's retirement account to be transferred to the other spouse as part of the divorce settlement. This can be used to offset the departing spouse's share of home equity — the keeping spouse gives up retirement funds instead of cash.

This requires specific legal documents and approval from the retirement plan. Your attorney and a financial advisor can evaluate whether this approach makes sense for your situation.

8. Deferred Sale or Temporary Arrangement

Both spouses agree that one will remain in the home for a set period — often until children reach a certain age, finish school, or another milestone. The home is then sold at that future date and proceeds are divided according to the agreement.

During the interim, the mortgage typically remains in both names. The agreement should clearly address who pays the mortgage, taxes, insurance, and maintenance. Your attorney can help structure the terms and timeline.

9. Co-Ownership After Divorce

In some cases, both spouses agree to continue owning the property jointly after the divorce — sometimes as an investment, sometimes to minimize disruption for children. Both remain on title and potentially on the mortgage.

This is less common and requires cooperation between both parties. The agreement should address how expenses are handled and when the arrangement ends. Your attorney can structure the co-ownership terms.

10. Sell the Home and Divide Proceeds

When a buyout is not practical — due to finances, disagreement, or court order — the home is sold and the net proceeds are divided. This is the most straightforward path and provides a clean financial break for both parties.

The division of proceeds does not have to be 50/50. Georgia is an equitable distribution state, so the split is based on what a Georgia court considers fair given the full circumstances. A current market valuation is essential so both parties understand what the home is actually worth before listing.