Deciding what to do with the house is often a big part of divorce. For many people, they simply sell their home. This way, they convert their real estate into a financial asset, and it is easier to divide. The couple can simply split up the money and go their separate ways.
In other cases, though, the house will be exchanged for other marital assets. Say that you bought a house for $300,000, and you and your spouse also have $300,000 set aside for retirement. You may end up negotiating a deal where you get to keep the house and your spouse gets to keep the full value of the retirement plan.
This can certainly work, but it is very important to have an evaluation done on your house. Do not assume that the price you paid for it is still what it is worth today.
Real estate trends
To see how important this is, just look at the average home price in the United States 20 years ago. According to financial experts at Yahoo, the average price was $140,000.
Today, in 2025, the average price of a home is around $503,000. This is a dramatic increase. Many people who bought homes in the last decade or so have seen their home values double or even triple.
So, just because you originally purchased your home for $300,000 does not mean it is worth the same amount as the retirement fund today. Your house could actually be worth $600,000 or $700,000. You need to have an evaluation done so that you can understand what it is really worth and factor it into the property division equation.
Your legal options
This process can be complex, and you may have very valuable assets on the line. Be sure you understand exactly what legal options you have.