Do you have to sell your house when there's a divorce? It all depends.
The house is the largest asset and largest liability in most marriages, so do you have to sell it? Maybe, maybe not. That all depends on whether or not there are enough assets in the marriage to compensate the other party for their fair share of the equity in that house. We're talking net equity. You have to take into account the mortgage, and sometimes through mediation or varying circumstances at trial, you might be able to retain the house for a period of time that will allow you to explore other options or find other financing to make it possible. Sometimes, people get a home equity line of credit to pull enough equity out to compensate the other party.
Right now, we're in a tough situation where housing prices are skyrocketing, so it's hard to replace the house, but that often frees up new equity for compensating the person who doesn't keep the house. Truly, it's easier to sell it and split the proceeds.