New York Divorce With a House — What Happens to Your Home (2026)

Real estate is often the largest asset in a New York divorce — and in one of the country's most expensive housing markets, how you handle it matters enormously.

Is Your Home Marital Property?

New York is an equitable distribution state. If you purchased the home during the marriage, it is marital property subject to equitable division.

Separate property (generally not divided):

  • Owned before the marriage
  • Inherited during the marriage
  • Received as a gift to one spouse
  • Excluded by prenuptial agreement

Appreciation of separate property: If you owned a home before marriage and it appreciated during the marriage due to market forces alone, that appreciation may remain separate property. But if the appreciation was partly due to marital contributions (renovations paid with marital funds, efforts of either spouse), the marital portion of appreciation may be subject to division. This is complex — consult an attorney if significant pre-marital home appreciation is involved.

Your Three Options

Option 1 — One Spouse Keeps the Home

Keeping spouse refinances mortgage into their name alone and buys out the other's marital interest.

Buyout: Get an appraisal or agree on value. Calculate equity (value minus mortgage). The leaving spouse receives their equitable share — often 50% unless circumstances justify otherwise.

Refinancing: Until refinanced, both spouses remain on the mortgage. Set a firm deadline in your Stipulation (60–180 days after Judgment). Include indemnification language.

Deed transfer: After refinancing, the leaving spouse signs a Bargain and Sale Deed or Quitclaim Deed transferring their interest. Must be notarized and recorded with the County Clerk. New York recording fees vary by county: approximately $30–$125. New York also has a Real Property Transfer Tax — but transfers between divorcing spouses pursuant to a divorce are generally exempt.

Option 2 — Sell and Split

Both agree to sell. Net proceeds divided per Stipulation.

Include in Stipulation: split percentage, listing timeline, agent selection process, minimum acceptable sale price, carrying cost allocation until sale.

Capital gains: Federal capital gains exclusion ($250,000 per person for primary residence) may apply. New York has its own capital gains tax — consult a CPA about your specific situation before finalizing your sale strategy.

Option 3 — Deferred Sale

One spouse stays temporarily before the home is eventually sold. Common when children are involved.

Requires very specific Stipulation language covering duration, cost allocation, occupancy compensation, and what triggers the sale.

New York City Co-ops and Condos — Special Considerations

If you live in a co-op apartment (very common in NYC), the transfer of shares is more complex than a simple deed:

  • Co-op boards typically must approve any transfer of shares
  • The board application process can add weeks or months
  • Some co-op buildings restrict transfers in divorce situations
  • Financing a co-op after divorce requires board approval of the refinancing

Condos are more straightforward — they transfer via deed like a house.

If you have a co-op, consult with a real estate attorney familiar with your specific building's requirements.

FAQ

What is the Real Property Transfer Tax in New York? New York State charges a transfer tax on real estate sales, generally 0.4% of the consideration. However, transfers pursuant to divorce are typically exempt from this tax. Confirm with your county recorder.

What about New York City's additional transfer taxes? NYC charges its own transfer taxes on real estate in the five boroughs. Transfers between divorcing spouses pursuant to a divorce judgment are generally exempt. Confirm with a title company.

What if we can't agree on the home's value? Get an independent appraisal. If you still can't agree after appraisals, this becomes a contested issue requiring a hearing.

What if my spouse won't sign the deed? New York courts can hold non-complying parties in contempt and can appoint a referee to execute the deed on their behalf.

Last reviewed: March 2026

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.