South Carolina Divorce With a House — Your Options (2026)

The family home is typically the most valuable marital asset in a South Carolina divorce. Because SC is an equitable distribution state with fault as a factor, both the overall fairness of the division and any marital misconduct can affect how home equity is allocated.

Is the Home Marital Property?

Purchased during the marriage with marital income: Marital property — subject to equitable distribution.

Owned before the marriage by one spouse: Non-marital property — typically stays with original owner. However:

• Mortgage payments from marital income during the marriage may create a marital interest in the equity
• Placing the home in joint names during the marriage may convert it to marital property

Inherited home: Non-marital property — stays with inheriting spouse. Keep documentation.

Purchased after formal separation began: May be treated as non-marital property (acquired after the separation date).

Option 1 — One Spouse Keeps the Home

Settlement Agreement must include:

• Full address and legal description
• Agreed fair market value (professional appraisal or agreed estimate)
• Equity calculation: agreed value − mortgage payoff − closing costs = net equity
• Each spouse's share of net equity (equitable — document the basis, including any fault consideration)
• Buyout method: cash, offset against retirement or other marital assets
• Mandatory refinancing deadline — keeping spouse refinances into their name alone within X days of Decree
• Fallback provision: If refinancing fails, the home is listed for sale
• Who pays mortgage, taxes, insurance, and HOA during the transition period
• Deed transfer: Leaving spouse signs Quit Claim Deed after refinancing → record at county Register of Deeds

Recording the Deed in South Carolina

After the Decree and refinancing:

1. Prepare a Quit Claim Deed (standard for divorce transfers in SC)
2. Leaving spouse signs and notarizes
3. Record at the County Register of Deeds in the county where the property is located
4. Pay recording fees ($15–$50)
5. South Carolina does not impose a deed recording tax for transfers incident to divorce — confirm with the Register of Deeds

Option 2 — Sell and Split Proceeds

Settlement Agreement must include:

• Each spouse's percentage of net proceeds (equitable — document basis)
• Listing timeline after Decree
• Agent selection method
• Who pays carrying costs during listing
• Who occupies and whether occupancy compensation applies
• Price reduction triggers and frequency
• What happens if either party refuses to sign closing documents

Option 3 — Deferred Sale (Often Used with Children)

One spouse stays in the home — typically the custodial parent — for a defined period, then the home is sold.

Settlement Agreement must include:

• Duration of deferral (specific date, event, or condition — e.g., youngest child graduates high school)
• Who pays all carrying costs (mortgage, taxes, insurance, HOA, maintenance)
• Occupancy compensation to the vacating spouse (or explicit waiver)
• Capital improvement rules and cost sharing
• Sale process and net proceeds split at end of deferral
• Refinancing requirement (vacating spouse off the mortgage within X months)
• Default provisions if conditions are not met

Fault Consideration in Home Equity Division

Because fault is Factor 15 in South Carolina's equitable distribution, marital misconduct can affect the home equity division:

• If one spouse committed adultery and it is proven, the innocent spouse may receive a larger share of the equity
• Courts can award the family home or a larger equity share to the innocent spouse

Document any fault issue carefully — it can have real financial consequences.

Last reviewed: March 2026 | Quit Claim Deed → County Register of Deeds | No recording tax for divorce transfers | Fault can affect equity split | Non-marital home protected with documentation

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