Maryland

Do You Need an Appraisal to Buy Out Your Spouse?

Maryland Family Law Article section 8-205(a)(2)(iii) does not mention an appraisal. It lets a court authorize a buyout on terms the court sets. Spouses who agree set their own terms. If a lender funds the buyout, the lender decides what valuation it accepts. Get an appraisal anyway. It gives both spouses one number.

By Marc Cormier

Licenses: Maryland #620443 | Virginia #0225175181 | DC #SP98365998 | Berkshire Hathaway HomeServices

27+ years in real estate. 800+ closed transactions.

Certified as a Certified Divorce Real Estate Expert (CDRE) in 2014.

Last updated: October 2, 2026

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Does Maryland law require an appraisal to buy out a spouse?

The text of Maryland Family Law Article section 8-205(a)(2)(iii) does not mention an appraisal.

The section covers real property that the spouses own jointly and use as the principal residence. Subject to the terms of any lien, it lets the court order a transfer to the other spouse if that spouse obtains release from the liens. It also lets the court authorize the purchase of the other party's interest on terms the court sets, or do both.

Spouses who agree do not wait for the court to set terms. They set their own, in writing. This post does not say a court never asks for proof of value. It says the statute text I read names no appraisal. Ask your attorney how a court in your case sets the value.

This post matches my buyout post. A buyout needs a value, a split, and funding. The appraisal is one way to get the value. See How to Buy Out Your Spouse's Share of the House.

Does the lender require an appraisal?

Ask your lender. The lender decides what valuation it accepts.

If a loan funds the buyout, the lender is a third party to your agreement. Fannie Mae Selling Guide section B2-1.3-02 treats a buyout of one owner by another, such as in a divorce settlement, as a limited cash-out refinance when its conditions are met. One condition is that the party who buys out the other must qualify for the mortgage under Fannie Mae's underwriting guidelines.

I state no appraisal rule for any lender. Other loan types have their own rules, and I did not verify them. Ask the lender one question before you spend money:

Do you accept the appraisal we already have, or do you order your own?

Get the answer in writing. If the lender orders its own, your first appraisal becomes a second cost.

Why get an appraisal anyway?

Because the whole buyout sits on one number. Value minus the mortgage is equity. Equity times the leaving spouse's share is the buyout. Two values give you two buyouts.

An appraisal is not a legal step in this post. It is a way to end the argument. Three reasons to get one:

One number both spouses accept. Neither spouse defends an online estimate or a neighbor's sale.
A written record you attach to the agreement.
Protection on both sides. The leaving spouse avoids a low number. The keeping spouse avoids overpaying.

How much does a wrong value move the buyout?

Every $10,000 of value moves an even split buyout by $5,000. Made-up numbers. Start with the standard example.

Line	Amount
Home value	$600,000
Mortgage balance	minus $250,000
Equity ($600,000 minus $250,000)	$350,000
Even split buyout ($350,000 divided by 2)	$175,000

Now change the appraised value. The mortgage stays at $250,000.

Appraised value	Equity	Even buyout
$580,000	$330,000	$165,000
$600,000	$350,000	$175,000
$620,000	$370,000	$185,000

Check the math. $580,000 minus $250,000 is $330,000. Half is $165,000. $620,000 minus $250,000 is $370,000. Half is $185,000. A $20,000 swing in value is a $10,000 swing in the buyout. A $10,000 error moves it $5,000.

Section 8-205 contains no 50/50 rule. This table uses an even split only to show the effect of value. Your agreement or the court sets the share.

What do you agree in writing before you order one?

Agree on five items before anyone orders an appraisal.

Who orders it, and how both spouses pick the appraiser.
Who pays. Three agreement options: split it evenly, the keeping spouse pays, or the cost comes out of the buyout payment.
The tiebreak rule if two values differ.
Both spouses receive the full report at the same time.
A deadline for the report and a deadline for the buyout to close.

The tiebreak rule comes first. A spouse who sees the number before the rule exists argues with the rule. Ask your attorney to write the terms.

What if the numbers differ?

Follow the rule you signed before you ordered. These are agreement options. They are not rules of law.

Option	How it works	Watch for
Average	Add the two values and divide by 2	Simple. One outlier moves the average
Third valuation	A third appraiser decides. Both spouses accept that number in writing in advance	Costs a third report and adds time
The lender's number	Both spouses agree to use the value the lender accepts	You do not know the buyout until the lender reports

Two appraisals: $590,000 and $620,000. The gap is $30,000.

Average: ($590,000 plus $620,000) divided by 2 = $605,000
Equity: $605,000 minus $250,000 = $355,000
Even split buyout: $355,000 divided by 2 = $177,500
Compare to the $600,000 case: $177,500 minus $175,000 = $2,500

A written rule is sometimes tied to a gap. If your agreement says a third appraiser decides when two values differ by more than $20,000, the $30,000 gap above triggers it.

Which situation are you in?

Find your row. Each row says what to do, who decides, and what this post claims about the rule.

Situation	What to do	Who decides	Rule claimed in this post
Spouses agree on the number	Write the number and how you reached it into the agreement. Get an appraisal if either spouse doubts the number	The spouses	None. This post states no rule requiring an appraisal
Spouses disagree	Order an appraisal or two independent valuations. Sign a tiebreak rule first	The spouses, by their written rule. If they cannot agree, the court	None. Ask your attorney how a court sets value
A lender funds the buyout	Ask the lender whether it accepts your appraisal or orders its own. Get the answer in writing first	The lender decides what valuation it accepts	None for appraisals. Fannie Mae's buyout rule requires the keeping spouse to qualify under underwriting guidelines
The court sets the terms	Ask your attorney what proof of value the court needs	The court, under section 8-205(a)(2)(iii)	The statute text names no appraisal. It lets the court set the terms of a buyout

What this means for your house

Section 8-205(a)(2)(iii) does not mention an appraisal. It lets the court authorize a buyout on terms it sets.
Spouses who agree set their own terms in writing.
If a lender funds the buyout, the lender decides what valuation it accepts. Ask first.
Get an appraisal anyway. One number ends the argument.
Sign the tiebreak rule and the payer before you order.

Where this goes wrong

I have seen this mistake before. A spouse orders an appraisal alone. The number comes back low or high. The other spouse rejects it and orders a second one. Now there are two numbers, two bills, and no rule. This is where people usually get hurt.

Ordering before the tiebreak rule is signed. The spouse who dislikes the number fights the rule.
One spouse picks the appraiser alone. The other spouse rejects the report.
Paying for an appraisal, then learning the lender orders its own. Ask the lender first.
Signing the buyout number before the lender confirms what valuation it accepts.
Staying silent on who pays. The cost becomes a second argument.
Skipping the appraisal because both spouses think they know the value. A $10,000 error moves the buyout $5,000.
Treating an appraisal as a legal requirement. This post states none. Ask your attorney.

Local note for Montgomery County: The Montgomery County Circuit Court runs a Family Law Self-Help Center. It is a free walk-in clinic staffed by attorneys, in the South Tower, First Floor, Room 1500. It gives general legal information or limited legal advice on divorce, custody, and related matters. You still pay case fees and costs. Source: https://www.montgomerycountymd.gov/circuit-court/services/family-law-self-help-center

If keeping the home does not work, here is how a divorce sale runs.

Questions about an appraisal and a spouse buyout

Q1. Do we need an appraisal for a buyout?

The statute text, Section 8-205(a)(2)(iii), does not mention an appraisal. Order one anyway. A licensed appraisal or two independent valuations put a single number under the buyout. Sign the tiebreak rule before you order. Ask your lender if it accepts the report or orders another. Each $10,000 of value error moves the buyout $5,000.

Q2. Does Maryland law require an appraisal to buy out a spouse?

I found no appraisal in the statute text. Section 8-205(a)(2)(iii) addresses a jointly owned principal residence and lets the court authorize a purchase of the other spouse's interest on court-set terms. Spouses who agree write their own terms. Your attorney explains how a court in your case sets value.

Q3. What if we disagree on price?

Order two independent valuations. Sign the tiebreak rule before the reports arrive. In a made-up example, appraisals of $590,000 and $620,000 average to $605,000. With a $250,000 mortgage, equity is $355,000 and an even split buyout is $177,500. Your attorney reviews the rule.

Q4. What if two appraisals come in at different values?

Your signed rule settles it. Three options fit an agreement: average the two values, bring in a third appraiser both spouses accept ahead of time, or use the value the lender accepts. None is a rule of law. Take $590,000 and $620,000 from the made-up example. They average to $605,000.

Q5. Who pays for the appraisal in a divorce buyout?

Name the payer on paper before anyone orders. Spouses pick from three options. Split the fee evenly, make the keeping spouse pay, or deduct the fee from the buyout payment. Section 8-205 names no rule on who pays. A lender that orders its own appraisal answers who pays and when, so ask. Your attorney writes the term.

Q6. Can I buy out my spouse?

It works when three things line up. You and your spouse agree on the value, you agree on the share, and you have the funds for the payment. Multiply equity by the share, with equity equal to value minus the mortgage. Any loan needs a lender's approval of you. Section 8-205(a)(2)(iii) also lets the court authorize a buyout on court terms. Your attorney writes the terms.

Q7. How is a buyout calculated?

Equity drives the buyout. Take the home's value, subtract the mortgage balance, and multiply by your spouse's share. Example: $600,000 of value less a $250,000 mortgage leaves $350,000 of equity. Half of that, an even split, is $175,000. Section 8-205 sets no 50/50 split. Your agreement or the court fixes the share.

Q8. Can I refinance on one income?

The lender decides, not you. Approval has to rest on your income alone. Ask for approval in writing before you sign the buyout, and ask what the lender needs. If the loan fails, the buyout fails. Write a fallback sale date into the agreement. Your attorney drafts the terms.

Do you need a divorce attorney?

You should have your own. I am a real estate agent. I do not give legal advice, and I do not work for one spouse against the other.

I am not affiliated with any law firm. I do not recommend one attorney over another. Your spouse needs their own attorney, not yours.

If you need to find one, start with these bar association resources:

Maryland State Bar Association, For the Public (points you to your county bar association)
Bar Association of Montgomery County, Maryland, Lawyer Referral Service

Links open in a new tab.

What an attorney handles	What I handle
Who gets the house and the money	The value of the house
The marital settlement agreement	The net sheet
Court orders that affect the sale	Listing, showings, offers, and closing
Custody, support, and everything outside real estate	A written record of every showing and decision

General information only. Not legal, tax, or financial advice. The referral services are independent of me. I do not guarantee any attorney's work or results.

About the Author

Marc Cormier