February 9, 2026
If you are going through a divorce and own a home, chances are you are trying to decide what to do with it. Should you keep it, sell it, or let your spouse have it? The answer depends on Oregon’s property division laws, your financial situation, and what makes sense for your post divorce life.
Deciding what happens to the family home is often the biggest part of Oregon divorce house division, especially when children are involved or when the home carries substantial equity.
This guide explains how Oregon courts handle marital homes, how marital property vs. separate property in Oregon works, and what factors matter most when navigating divorce and real estate in Oregon.
Key Takeaways:
Oregon divides marital homes based on what is “just and proper,” often splitting equity 50-50.
One spouse may keep the home, the couple may sell it, or they may delay a sale for children.
Keeping the house requires a buyout and often refinancing.
Affordability, taxes, and long term financial impact should guide your decision.
Parenting time can influence who stays in the home.
Get an appraisal and legal advice before choosing your path.
The answer to the question, “Who gets the house in an Oregon divorce?” depends on the circumstances of each divorce.
In Oregon, the allocation of property between spouses in a divorce must be “just and proper” according to ORS 107.105(1)(f). In practice, Oregon divorce property division generally treats assets acquired during the marriage as jointly owned. In other words, when considering marital property vs separate property in Oregon, marital property is anything that was acquired during the marriage.
If your home was purchased during the marriage, the equity is usually divided equally. Equity means the market value of the home minus the mortgage and any debts secured by the property.
This usually means:
If you keep the house, you will owe your spouse half of the equity.
If your spouse keeps it, they owe you half.
If neither of you keep it, the house is sold and the net proceeds are divided based on the overall property division.
1. One Spouse Keeps the Home
This is the most common outcome when children are involved. It is common for the custodial parent to be awarded the house to maintain stability for children. As mentioned above, when one spouse keeps the home, they will need to pay out the other.
2. The Home is Sold
If neither spouse can afford the home or refinancing is not possible, the court may order a sale. This allows each spouse to receive their share of equity and reduce ongoing financial strain.
3. Delayed Sale for the Benefit of Children
In some cases, the court or the spouses agree to keep the home temporarily. One spouse lives there until a child reaches a certain age or graduates. After that, the home is sold and the equity is divided. This can help preserve stability, but it also means continued shared responsibility for a non-liquid asset.
4. A Buyout Using Offset Assets
Instead of cash, one spouse may receive retirement funds, investment accounts, or other assets equal to their share of the home’s equity. This is common in Oregon divorce property division, but spouses should understand potential tax implications before choosing this approach.
Before making any decisions, you should get a comparative market analysis or a full appraisal. The average home value in Oregon is $493,884. If you owe more than the house is worth, can you afford to pay the shortfall or will you need to explore a foreclosure or short sale?
With rapidly changing market conditions, knowing the current value is essential. Meet with a real estate agent to learn how long houses like yours are taking to sell in your area so you can think about how the mortgage, utilities, insurance, etc. will get paid while the sale is pending. A real estate agent should also be able to give you an idea of how much you should budget for necessary repairs to make the home more appealing on the real estate market.
Homeownership costs have risen sharply. In addition to discussing this with your divorce lawyer, meet with a financial advisor who can help you review your monthly budget. When evaluating affordability, look at:
• Monthly mortgage payments
• Property taxes
• Homeowners insurance
• Utilities
• Maintenance and repairs
Many lenders require a debt to income ratio below 43 percent to refinance. Again, a financial advisor can help you determine whether a single income can realistically support the home.
If you keep the home, refinancing into your name alone is usually required. The court cannot force a bank to refinance. If refinancing is not possible within a court ordered timeline, the judge may require the house to be sold. This is a major part of Oregon divorce house division, especially when both spouses remain on the mortgage.
The goal is to make sure the liquidity of the assets you are getting from the divorce match your needs. Again, meet with a financial advisor and/or CPA to determine the various tax consequences that could result from selling or trading assets and liabilities during divorce.
For example, if you decide to keep the house now and intend to sell it later on your own, you may have to pay significant capital gains tax and real estate fees while selling during a divorce essentially splits these costs with your spouse.
If you’re giving up a pension or other retirement asset to keep the house, you should understand the long-term consequences, i.e., pre-tax contributions and tax liabilities, before doing so.
Your home is likely tied to many memories with your soon-to-be ex-spouse. Selling it may feel like losing part of your past, but keeping it may also carry emotional weight. It could be emotionally beneficial to not be reminded of your past every time you sit down in your kitchen or living room. When making these kinds of decisions it’s important to factor in your emotional wellbeing.
Related: How Does Divorce Affect Estate Planning in Oregon+Washington?
Does Oregon always divide a home 50-50?
Not always. Oregon aims for a “just and proper” division. In most marriages, equal division of equity is appropriate, but courts may deviate depending on circumstances.
What if my spouse owned the home before we married?
You may still be entitled to part of the appreciation or equity gained during the marriage. It depends on contributions and improvements.
Can a judge force us to sell the house?
Yes. If neither spouse can afford it or refinancing fails, the court can require a sale.
Does custody affect who gets the house?
Sometimes. A parent with primary parenting time may receive temporary exclusive use of the home for the child’s stability.
What if we owe more than the house is worth?
You may need to negotiate repayment, consider a short sale, or divide responsibility for the deficit.
Can we delay selling the home until our children finish school?
Yes, this is possible. Couples sometimes agree to a delayed sale. However, shared ownership can create ongoing financial and legal responsibilities.
Your home is often your biggest asset, and deciding what to do with it during a divorce is rarely simple. Regardless of what you do, try to gather as much information as possible before making a final decision.
Given the long-term ramifications of these types of decisions you want to make sure you have the right experts involved. Ideally, you will want to explore your options with your Oregon family law attorney, financial advisor, and/or accountant in order to make well-informed and educated choices regarding your property division.
The attorneys at Gevurtz Menashe are experienced in Oregon divorce property division and understand how real estate, mortgages, and long term financial planning fit into the bigger picture.
If you need clear direction on what to do with your home during a divorce, visit one of our 4 locations or contact us online to get started.
