What Happens to My House If I Get Divorced in Indiana?
Your home is often the largest asset in a divorce — and one of the most emotionally charged. Indiana courts divide marital property under an equitable distribution standard, which does not always mean 50/50. Understanding your rights, your options for the house, and how to move forward gives you the clarity to make decisions during an already difficult time.
Call (317) 495-3440 — Free ConsultationIndiana's Equitable Distribution Standard
Indiana is an equitable distribution state under IC 31-15-7-4. Courts divide marital property in a manner that is 'just and reasonable' — which is presumed to be an equal (50/50) division, but can be adjusted based on factors including the contribution of each spouse to the acquisition of the property, the economic circumstances of each spouse, and the conduct of the parties during the marriage. The marital estate generally includes all property acquired during the marriage, regardless of whose name is on the title.
Your Three Options for the Marital Home
When divorcing in Indiana, you have three primary options for the marital home: (1) One spouse buys out the other — the spouse keeping the home refinances the mortgage in their name alone and pays the other spouse their share of the equity; (2) Sell the home and split the proceeds — both spouses agree to sell and divide the net proceeds according to the divorce decree; (3) Continue co-ownership temporarily — some couples agree to delay the sale until children finish school or the market improves. Each option has financial and legal implications that should be discussed with a divorce attorney.
What If You Cannot Agree on the House?
If you and your spouse cannot agree on what to do with the marital home, the court can order a forced sale. Under Indiana divorce law, the court has authority to order the property sold and the proceeds divided. A court-ordered sale typically results in a lower sale price than a voluntary sale because it is conducted under time pressure. Reaching a voluntary agreement — even through mediation — almost always produces a better financial outcome than a court-ordered sale.
Selling the House During Divorce
Selling the marital home during a divorce can simplify the property division and provide both parties with liquid assets. A cash sale to a buyer like Bartolini Cash Buyers can close quickly — often in 7 days — which can be valuable when both parties want to move on. The sale proceeds are divided according to the divorce decree or a separate agreement. Both spouses must typically sign the deed and closing documents unless one spouse has been granted sole authority by the court.
Mortgage Liability After Divorce
If both spouses are on the mortgage, both remain legally liable for the debt until the mortgage is refinanced or the property is sold — regardless of what the divorce decree says. A divorce decree that assigns the mortgage to one spouse does not release the other spouse from liability to the lender. If the spouse assigned the mortgage stops paying, the other spouse's credit is damaged and the lender can pursue both parties. This is why refinancing or selling is strongly preferred over simply assigning the mortgage in the divorce decree.
Indiana Legal References
The following Indiana statutes are referenced on this page. Links go directly to the Indiana General Assembly website.
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