Divorce or Separation?Understand Your Housing Options

Yes, getting your housing options report is completely free with no obligation. If you decide to work with our partner realtor, standard real estate commissions may apply, but there's no cost to you for the initial consultation and options report.

Absolutely. We take your privacy seriously. Your information is stored securely and will never be shared with third parties without your explicit consent. We're here to help, not to sell your data.

No, we are not attorneys and do not provide legal advice. We focus exclusively on housing options and real estate guidance. We always recommend consulting with a qualified family law attorney for legal matters related to your divorce or separation.

We serve all of Northwest Arkansas, including Bentonville, Rogers, Springdale, Fayetteville, Bella Vista, Lowell, Cave Springs, Centerton, and surrounding communities in Benton and Washington counties.

Our estimates are directional and based on the information you provide. They're designed to give you a starting point for understanding your options. For precise numbers, we'll connect you with a local specialist who can provide a detailed market analysis.

You'll immediately see a summary of your housing options. Then, a local housing specialist will reach out within 1-2 business days to answer questions and discuss your situation in more detail. You're never obligated to move forward.

Yes, one spouse can keep the home in an Arkansas divorce through a buyout arrangement where they compensate the other spouse for their share of the equity. Arkansas is an "equitable distribution" state, meaning the court divides marital property fairly (not necessarily equally). If you and your spouse agree, one person can refinance the mortgage in their name alone and buy out the other's interest. However, both parties must agree to this arrangement, or the court may order the property sold at auction if no agreement is reached. Always consult with an Arkansas family law attorney for advice specific to your situation.

A home buyout occurs when one spouse pays the other spouse their share of the home's equity to become the sole owner. First, you determine the home's current market value, then subtract what you owe on the mortgage—this remaining amount is your equity. In a buyout, the spouse keeping the home typically refinances the mortgage in their name alone and pays the departing spouse half (or an agreed-upon portion) of that equity. This can be done through a cash payment, offset against other marital assets, or structured payment plan, depending on your agreement and lender approval.

In Arkansas, marital home equity is divided according to "equitable distribution" principles under Arkansas Code § 9-12-315. This means the court seeks a fair division based on factors like the length of the marriage, each spouse's income and earning capacity, the source of property acquisition, and contributions to marital property. While a 50/50 split is common, the court may award a different percentage if fairness requires it. Only marital equity (value built during the marriage) is divided; any equity one spouse brought into the marriage may remain separate property. Always consult an attorney, as every case has unique circumstances.

If you and your spouse cannot agree on how to handle your home, an Arkansas court may order the property sold at a public auction (often called "courthouse steps" sale) and divide the proceeds. Arkansas courts do not have the authority to force a private market sale, so if negotiations fail, an auction is the default legal remedy. Auction sales typically yield less than private market sales, so most couples benefit from reaching an agreement—whether that's one spouse buying out the other, selling the home privately and splitting proceeds, or another creative arrangement. Mediation is often helpful for reaching consensus.

Yes, refinancing is the standard way to remove an ex-spouse from the mortgage during or after divorce. To qualify for a solo refinance, you'll need sufficient income, good credit (typically 620+ credit score), and adequate debt-to-income ratio (usually below 43-50%) to support the mortgage payment on your own. The lender will assess your ability to afford the home without your ex-spouse's income. You may also need cash or other assets to buy out your ex-spouse's equity share. If you cannot qualify for refinancing, alternatives include selling the home or negotiating temporary co-ownership until refinancing becomes feasible.

Closing costs are fees associated with selling or refinancing a home, typically ranging from 6-10% of the sale price in Arkansas. These include real estate agent commissions (usually 5-6%), title insurance, escrow fees, prorated property taxes, HOA fees, transfer taxes, and any needed repairs or concessions. During a divorce, couples typically split closing costs proportionally to their equity share, or one spouse may agree to cover them in exchange for other concessions. In a refinance/buyout scenario, the spouse keeping the home typically pays the refinancing closing costs (2-5% of loan amount). Your divorce settlement should specify how these costs are allocated.

Online estimates (like Zillow's Zestimate or Redfin Estimate) provide a helpful starting point but can be off by 5-10% or more in either direction. For divorce purposes, most attorneys and mediators recommend a professional appraisal or Comparative Market Analysis (CMA) from a licensed Arkansas realtor familiar with your specific neighborhood. Northwest Arkansas has diverse micro-markets—what applies in downtown Bentonville may not reflect values in rural Cave Springs or university-area Fayetteville. A professional evaluation considers your home's specific condition, upgrades, and recent comparable sales, providing a defensible value for settlement negotiations or court proceedings.

Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments, including mortgage, car loans, credit cards, student loans, and other obligations. Lenders use DTI to assess whether you can afford a mortgage on your sole income. Most lenders require a DTI below 43-50% to approve a refinance. For example, if you earn $6,000/month and your debts total $2,400/month, your DTI is 40%—likely acceptable. If your DTI is too high to qualify for refinancing, options include paying down other debts, increasing your income, or choosing to sell the home instead of pursuing a buyout.

Yes, you should disclose your divorce or separation to your lender during the refinance process. Lenders will require documentation of your divorce decree or separation agreement, especially if it involves alimony, child support, or property division. These factors affect your income calculation and debt obligations. Child support and alimony payments can be counted as income (with proper documentation) or debt obligations depending on whether you're receiving or paying. Transparency ensures a smooth refinance process and avoids delays or denial due to undisclosed debts or obligations.

In Arkansas, marital property includes all assets and debts acquired during the marriage, regardless of whose name is on the title—this is subject to division in divorce. Separate property includes assets owned before marriage, inheritances, and gifts given specifically to one spouse—this generally remains with the original owner. However, separate property can become marital property through "commingling" (mixing separate and marital funds) or if marital funds improve separate property (like using joint income to renovate a house one spouse owned before marriage). If you owned your home before marriage, the equity gained during the marriage is likely marital property subject to division.