Washington DC
Selling or Keeping the House in a DC Divorce
This page covers DC law only.
In a Washington, DC divorce you have three choices for the house. Sell it and split the money. One spouse buys the other out. Or both stay on title for a set time. D.C. Code section 16-910 distributes property by listed factors and states no fixed percentage. Decide with numbers, not emotion.
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
On this page
Who gets the house in a DC divorce?
DC does not hand the house to one spouse by default. D.C. Code section 16-910 says that on entry of a final decree of legal separation, annulment, or divorce, the court shall sort property in two steps. That applies in the absence of a valid antenuptial or postnuptial agreement resolving all issues related to the property.
Step one. Under section 16-910(a)(1), the court assigns to each party the party's sole and separate property acquired before the marriage. It also assigns the party's sole and separate property acquired during the marriage by gift, bequest, devise, or descent, and any increase of it, or property acquired in exchange for it.
Step two. Under section 16-910(a)(2), the court shall value and distribute all other property and debt accumulated during the marriage "regardless of whether title is held individually or by the parties in a form of joint tenancy or tenancy by the entireties." The statute states its standard in the same sentence and requires a distribution that is equitable and reasonable "after considering all relevant factors." Title does not decide it.
Here is where people get hurt. They assume the name on the deed settles the question. The statute says otherwise. Keep records of when you bought, who paid the down payment, and any gift or inheritance that went into the house. I do not say how a court treats mixed money in your case. Ask your attorney.
Section 16-910(a)(2) lists factors. These five are quoted word for word:
- (B) "the age, health, occupation, amount, and sources of income, vocational skills, employability, assets, debts, and needs of each of the parties"
- (G) "each party's contribution as a homemaker or otherwise to the family unit"
- (J) "each party's contribution to the acquisition, preservation, appreciation, dissipation, or depreciation in value of the assets subject to distribution, the taxability of these assets, and whether the asset was acquired or the debt incurred after separation"
- (K) "the effects of taxation on the value of the assets subject to distribution"
- (L) "the circumstances that contributed to the estrangement of the parties, including the history of physical, emotional, or financial abuse by one party against the other"
The list also covers other items, such as the duration of the marriage and provisions for the custody of any minor children. The statute lists factors and states no fixed percentage. Source: https://code.dccouncil.gov/us/dc/council/code/sections/16-910
Your three options for the house
Quick comparison
| Option | What you get | What you risk | Works best when |
|---|---|---|---|
| Sell and split | A clean break. Neither of you carries the mortgage after closing. | A slow sale if you disagree on price, showings, or repairs. | You both want out and agree on terms. |
| One spouse buys out the other | Stability, especially with children and school ties. | The lender says no to the new loan and the buyout fails. | One spouse affords the house on one income. |
| Keep it together for a set time | Time. | Two people share a financial lock after trust is gone. | A written plan sets a sale date. |
Option 1. Sell and split the proceeds
You list the house. The sale price pays the mortgage and the costs of sale. What remains is split under your written agreement or the court's decree.
What you get: a clean break.
What you risk: a slow sale. Delay costs money. The mortgage, taxes, insurance, and utilities keep running while the house sits.
Option 2. One spouse buys out the other
One spouse keeps the house. That spouse refinances into one name and pays the other spouse an agreed share of the equity. The two of you agree on value and on the share, in writing.
What you get: stability, especially with children and school ties.
What you risk: the lender decides whether you qualify on your own income. If the loan fails, the buyout fails and the house goes back on the table. Price the mortgage, taxes, insurance, and repairs on one income before you fight for the house. Ask a lender first.
If keeping the home does not work, here is how a divorce sale runs.
Option 3. Keep the house together for a set time
Both of you stay on title. You agree on who lives there, who pays, and when you sell. Families with young children often look at this first.
What you get: time.
What you risk: everything that goes wrong when two people share a financial lock after trust is gone. A missed payment hurts both of you. Put the sale date, the trigger events, and the payment rules in writing.
If keeping the home does not work, here is how a divorce sale runs.
A fourth path to know about: exclusive use while the case is pending
D.C. Code section 16-911 says the court is allowed to award exclusive use of the family home or any other dwelling unit available for use as a residence while the case is pending, on an equitable and reasonable standard "after consideration of all relevant factors." That award does not change who owns the house. The statute I read gives this power while the case is pending. Ask your attorney about orders after the decree.
If keeping the home does not work, here is how a divorce sale runs.
Should we sell before or after the divorce is final?
Short answer: it depends on your taxes, your agreement, and who controls the process. Talk to your attorney and a CPA before you list.
Selling before the decree keeps one clean file. Both of you sign the listing agreement and the contract when both are on title. Your attorney puts the sale terms in writing first. Your agreement says who picks the price, who pays for repairs, and how the proceeds split.
Selling after the decree gives each of you control over your own share. It also removes the built-in referee. Price fights, repair fights, and showing fights after a decree land in front of a judge.
D.C. Code section 16-910(a)(2)(K) lists "the effects of taxation on the value of the assets subject to distribution" as a factor. Taxes belong in the plan from day one.
The tax point (federal, shared by every state)
- IRS Topic no. 701 says you qualify to exclude up to $250,000 of gain from income, or up to $500,000 if you file a joint return with your spouse.
- Ownership test: you owned the home at least 24 months of the last 5 years before the sale.
- Use test: you used it as a residence at least 24 months of the previous 5 years.
- On a joint return, either spouse meets the ownership test and both meet the use test individually.
- IRS Publication 523 says that if your former spouse is allowed to occupy the home under a divorce or separation instrument and lives there as a principal residence, you treat the property as your own residence for the exclusion.
- Sources: https://www.irs.gov/taxtopics/tc701 and https://www.irs.gov/publications/p523
Example numbers that show when this matters:
| Line | Amount |
|---|---|
| Bought for | $300,000 |
| Sells for | $700,000 |
| Gain, defined here as sale price minus purchase price | $400,000 |
| Exclusion if one spouse keeps the house and sells alone later | $250,000 |
| Gain above the exclusion ($400,000 minus $250,000) | $150,000 |
| Exclusion on a joint return | $500,000 |
| Gain above the exclusion on a joint return ($400,000 minus $500,000, floor of $0) | $0 |
Your CPA adjusts the gain for your own records and applies the tax rate. Timing changes the tax bill. Ask before you list, not after you close.
Can you sell the house while the divorce is still pending?
Short answer: both owners sign, and you check for orders first.
The rules that control the sale
- Both owners sign. Do both spouses have to sign the listing agreement? Yes, when both are on title. Confirm the signing requirements for your sale with your attorney.
- Check for court orders first. D.C. Code section 16-911 says that while a case is pending, the court is allowed to enjoin any disposition of a spouse's property to avoid the collection of the allowances required. It is also allowed to order other appropriate pendente lite relief. Check for any order before you list. Ask your attorney whether any order, agreement, or filing in your case touches selling, transferring, or borrowing against the home. I do not say whether an order bars a sale.
- If one of you refuses. Ask your attorney whether the court is allowed to order a sale in your case. I do not predict what a court will do.
- Mortgage and carrying costs. The mortgage, taxes, insurance, and utilities keep running while the house is listed. Decide in writing who pays them and whether that spouse is repaid from the proceeds.
Spell out the net proceeds in writing
Do not agree to "50/50" and stop there. Before you list, write down:
- Who pays the agent commission, repairs, staging, and the mortgage while the house is listed.
- Whether those costs come off the top of the sale or get repaid to one spouse.
- What happens if the house sells below your target price.
- Who signs off on repair spending and price drops.
This is the paper that stops a fight at month three.
Who holds the money
Ask your title company and your attorney who holds the sale proceeds and when each spouse is paid. Put the answer in your written agreement before you list.
The tax point most people get wrong
- The $500,000 figure applies when you file a joint return with your spouse and both of you meet the use test. After a divorce, a spouse who sells alone is looking at the $250,000 figure.
- If one spouse keeps the house and sells later alone, the larger exclusion is gone. Run that number before you agree to a buyout.
- Ask your CPA before you sign a listing agreement, not after you close.
Residency and grounds: what the DC Code says
These two rules set when a DC divorce is filed. They are timeline context for your house plan. They do not tell you when to list.
- Residency. D.C. Code section 16-902 says no action for divorce or legal separation is maintainable unless one of the parties has been a bona fide resident of the District of Columbia for at least 6 months next preceding the commencement of the action. A member of the armed forces who resides in DC for a continuous period of 6 months during military service is deemed to reside in DC for purposes of that section only.
- Grounds. D.C. Code section 16-904 allows a divorce upon the assertion by one or both parties that they no longer wish to remain married.
- Sources: https://code.dccouncil.gov/us/dc/council/code/sections/16-902 and https://code.dccouncil.gov/us/dc/council/code/sections/16-904
Each spouse needs their own attorney. I do not give legal advice, and I do not recommend one attorney over another.
How a divorce home sale works, step by step
- 1
Agree on the method. Both of you decide: list with an agent, sell to a cash buyer, or buy out.
- 2
Get the value. Use a formal appraisal or a detailed market analysis from an agent. If you disagree, use two valuations and a written tiebreak rule.
- 3
Sign one listing agreement. One agent. Two agents means two commissions and two opinions. Both owners sign when both are on title.
- 4
Set the showing rules in writing. Who is out of the house, when, and how notice works.
- 5
Prepare the house. Agree on a repair budget cap and who approves spending.
- 6
Review offers together. Write down in advance what price and terms each of you accepts.
- 7
Close and split the money. The sale pays off the mortgage and the costs. The remaining proceeds go where your written agreement or the court's decree says.
Most delays come from steps 2, 4, and 6. Fix those with a written agreement before you list.
Get my free book, Best Selling Options in a Divorce.
What the sale puts in your pocket
Run a net sheet before you decide anything. A net sheet shows what each of you walks away with after the mortgage, commission, and costs.
Say your house is in Cleveland Park. Example numbers:
| Line | Amount |
|---|---|
| Sale price | $750,000 |
| Mortgage payoff | minus $300,000 |
| Commission at an example rate of 6% ($750,000 x 0.06) | minus $45,000 |
| Closing costs | minus $8,000 |
| Repairs | minus $14,000 |
| Net before taxes ($750,000 minus $300,000 minus $45,000 minus $8,000 minus $14,000) | $383,000 |
| Even split ($383,000 divided by 2) | $191,500 each |
Carrying cost is a separate note. It is not inside that net. At $3,500 a month for mortgage interest, taxes, insurance, and utilities:
| Months on the market | Carrying cost |
|---|---|
| 3 months | $10,500 |
| 4 months | $14,000 |
| 6 months | $21,000 |
| 12 months | $42,000 |
| 18 months | $63,000 |
The even split is arithmetic for teaching. D.C. Code section 16-910 lists factors and states no fixed percentage. Your agreement or the court's decree decides the division. The 6% is an example rate. Commission is negotiable.
What this example leaves out
- Transfer and recordation taxes. Ask your title company whether any apply to your sale and who pays. This page names no rate.
- Capital gains tax (see Section 3).
- Payoff extras on the mortgage, such as late fees, liens, or a second loan.
- Attorney fees and moving costs.
- Mortgage payments, taxes, and insurance paid since the filing date.
Stress test your own numbers
- Price 5% lower than you hoped.
- Add two months on the market.
- Add a repair overrun.
For every line of one worked case, see the DC divorce home sale net sheet.
If the deal still works, it is a deal. If not, change the plan now.
Buyout math (the simple version, example numbers)
| Line | Amount |
|---|---|
| Home value | $600,000 |
| Mortgage balance | minus $250,000 |
| Equity | $350,000 |
| Buyout at an even split ($350,000 divided by 2) | $175,000 |
| New loan to pay off the old mortgage and fund the buyout ($250,000 plus $175,000) | $425,000 |
- D.C. Code section 16-910 states no fixed percentage. Your agreement or the court's decree decides the division.
- The spouse who keeps the house also pays closing costs on the new loan and carries the house alone. The lender decides what loan you qualify for.
Where divorce sales go wrong
| Mistake | What it costs |
|---|---|
| Two agents | Two commissions, two opinions, two price fights. |
| Listing before the terms are in writing | One spouse blocks the next step and the sale stalls. |
| Overpricing | Buyers assume somebody is out of touch. The house sits and the price drops anyway. |
| Skipping the tax math | The tax bill arrives after the money is spent. |
| Fighting for the house without checking affordability | Many people win the house and lose it later. |
| Leaving the buyout without a backup | If the new loan falls through, you need a sale date already in the agreement. |
| Using emotion to price | Emotion costs people money. |
Local note for DC: The DC Superior Court Family Court Self-Help Center is at 500 Indiana Avenue NW, Room JM 570, Washington, DC 20001. It offers general legal information in family law matters such as divorce to people without attorneys. Confirm hours with the court before you go. Source: https://www.lawhelp.org/dc/organization/family-court-self-help-center
Neighborhoods across DC
I serve homeowners across Washington, DC.
- Northwest
- Northeast
- Southeast
- Southwest
In every quadrant I do the same work. I value the home with comparable sales. I run your net sheet before you list. I manage showings, offers, and closing. I keep a written record of every showing and every decision. I work with your attorneys, mediator, and CPA.
Special situations
Divorce after 50
Older couples face different math. Retirement assets, downsizing, and the cost of carrying a larger home all affect the house. D.C. Code section 16-910(a)(2)(B) lists "the age, health, occupation, amount, and sources of income, vocational skills, employability, assets, debts, and needs of each of the parties" as a factor. Send retirement questions to your attorney and your CPA.
Higher-value homes
Pricing disputes get bigger when the number gets bigger. Two valuations and a written tiebreak rule matter more here.
Inherited or pre-marital homes
A house you owned first or inherited is not automatically safe. D.C. Code section 16-910(a)(1) has the court assign to each party the party's sole and separate property acquired before the marriage, and property acquired during the marriage by gift, bequest, devise, or descent. Section 16-910(a)(2)(J) lists each party's contribution to the acquisition, preservation, appreciation, dissipation, or depreciation in value of the assets as a factor. Keep records of every dollar that went into the house. I wrote a book on probate real estate, "Inherited," and I handle these files. Ask your attorney how the statute applies to your house.
Who this guide is for, and who it is not for
For you if
- You own a home and are divorcing in DC or considering it.
- You want numbers before you pick a path.
- You work with an attorney and want to understand the house side.
Not for you if
- You want legal advice about custody, support, or other issues. That belongs with your attorney.
- You need a rushed cash sale at any price and have not run the numbers.
- You need safety help. If you are not safe at home, call 911.
What I do, and what I do not do
What I do
- Value the house with real comparable sales.
- Give you a net sheet before you decide.
- Manage showings, offers, and closing.
- Work with your attorneys, mediator, and CPA.
- Keep a written record of every showing and every decision.
What I do not do
- Give legal or tax advice. Your attorney and CPA do that.
- Tell you which option to pick for your family.
- Recommend one attorney over another. I am not affiliated with any law firm.
My background
- 27+ years in Maryland, DC, and Virginia real estate.
- 800+ closed transactions across probate, distressed property, and bankruptcy trustee sales.
- Qualified and testified as a real estate expert witness in federal court.
- Certified as a Certified Divorce Real Estate Expert (CDRE) in 2014.
- Author of "Inherited" on probate real estate.
- Brown University graduate.
Common questions about the house in a DC divorce
Q1. Do both spouses have to sign the listing agreement?
Yes, when both are on title. Confirm the signing requirements for your sale with your attorney. Before anyone signs, settle four items in writing: the price floor, the repair budget, the showing rules, and who approves a price drop. A listing signed without those terms starts the first fight.
Q2. Who gets the house in a DC divorce?
No rule hands the house to one spouse. D.C. Code section 16-910 has the court assign each party's sole and separate property, then value and distribute all other marital property and debt regardless of title. The statute sets its standard for that distribution and lists factors for the court to consider. It states no fixed percentage.
Q3. Can we sell the house before the divorce is final?
Both owners sign when both are on title. Put the sale terms in writing first. Then ask your attorney whether any order in your case touches the home. D.C. Code section 16-911 lists relief the court is allowed to order while a case is pending, including exclusive use of the family home. I do not say whether an order bars a sale.
Q4. What if my spouse refuses to sell?
Joint title means neither of you sells alone. Start with written terms and one neutral valuation. Ask your attorney whether the court is allowed to order a sale in your case. Delay costs money. At $3,500 a month in carrying costs, six months is $21,000. Do not rush a bad sale, and do not stall a good one.
Q5. Can I buy out my spouse?
Yes, when you and your spouse agree on value and share and your lender approves the new loan. Equity is value minus the mortgage. On an example $600,000 home with a $250,000 mortgage, equity is $350,000 and an even buyout is $175,000. If keeping the home does not work, here is how a divorce sale runs.
Q6. How is the house valued if we disagree?
D.C. Code section 16-910 says the court shall value the property it distributes. This page states no valuation date. You do not have to wait for the court. Order a formal appraisal or collect two independent valuations. Agree in writing on a tiebreak rule first. One shared number ends the argument.
Q7. What are the grounds for divorce in DC?
D.C. Code section 16-904 allows a divorce upon the assertion by one or both parties that they no longer wish to remain married. Grounds and timing are legal questions. Ask your attorney how the rule applies to your facts, and do not set your listing date until your attorney confirms the plan.
Q8. Do I have to live in DC before I file?
D.C. Code section 16-902 says no action for divorce or legal separation is maintainable unless one of the parties has been a bona fide resident of the District of Columbia for at least 6 months before the action starts. A member of the armed forces who resides in DC for a continuous 6 months during military service is deemed a resident for that section only.
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 here:
- D.C. Bar, Finding or Hiring a Lawyer (lists lawyer referral services)
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
Licenses: Maryland #620443 | Virginia #0225175181 | DC #SP98365998 | Berkshire Hathaway HomeServices
Co-author of "Cracking the Real Estate Code," a best seller in four Amazon categories on release day, September 2013.
Certified as a Certified Divorce Real Estate Expert (CDRE) in 2014.
Sources
- D.C. Code sections 16-902, 16-904, 16-910, and 16-911: https://code.dccouncil.gov/us/dc/council/code/sections/16-910
- IRS Topic no. 701, Sale of your home: https://www.irs.gov/taxtopics/tc701
- IRS Publication 523, Selling Your Home: https://www.irs.gov/publications/p523
- DC Superior Court Family Court Self-Help Center: https://www.lawhelp.org/dc/organization/family-court-self-help-center
- D.C. Bar, Finding or Hiring a Lawyer: https://www.dcbar.org/for-the-public/hiring-a-lawyer
General information only. Not legal, tax, or financial advice. Example numbers are for teaching only. This page gives general information about real estate in a DC divorce. Every case is different. Talk to a DC family law attorney and a CPA about your situation. A real estate professional does not give legal advice.
Related reading
Get the numbers before you decide
Start with a confidential 15-minute conversation. I will explain your options, run a net sheet, and tell you what usually goes wrong with houses like yours.
15 minutes. Free. No pressure.