Divorce and property decisions: A guide to selling, buying out or keeping
Divorce is never an easy decision, and when shared property is involved, it becomes even more complicated. While it may feel necessary to finalise all divorce proceedings immediately, it is important not to rush property decisions. Whether you are considering selling, buying out the other partner, or keeping the property, it is essential to understand the available options so that you can make a sound financial decision and create a clearer path forward.According to Adrian Goslett, CEO and Regional Director of RE/MAX Southern Africa, the best approach to property decisions during a separation usually depends on a range of factors, including affordability, bond obligations, the presence of children, and whether one or both parties wish to keep the home long term. While every situation is different, there are three common paths that people generally consider.
The first option is selling the property and splitting the proceeds. This is often the most straightforward solution, especially when neither party can afford to retain the property alone, or when both want a clean financial separation. Selling the property allows both parties to settle any outstanding bond, divide the equity fairly, and move forward with fewer shared financial ties.
Goslett advises that timing is critical when selling. “It’s crucial to take your time when selling a property, as rushed sales can sometimes result in lower offers, particularly if the property is not properly prepared or priced. Working with an experienced property professional can help ensure the home is well positioned and sold at fair market value.”
Another option is for one spouse or partner to buy out the other. This is often considered when one party wants stability, particularly if children are involved and remaining in the same home feels like the best solution. In a buy-out arrangement, the person retaining the property compensates the other for their share of the equity.
However, buy-outs require careful financial planning. The remaining owner must qualify for the bond in their own name, and the property may need to be formally transferred through a conveyancer and registered at the Deeds Office. It is also important to account for the full cost of ownership, including conveyancing and potential transfer costs, as well as ongoing expenses such as rates and taxes, levies, maintenance, and insurance.
The third option is to keep the property jointly, at least for a short period. Some separating couples choose to hold on to the property temporarily, particularly if market conditions are unfavourable for selling or if they are waiting for a better time to make a long-term decision.
While this approach can work in certain circumstances, it requires clear communication and legally sound agreements. Both parties remain financially tied to the home, and disputes can arise over expenses, maintenance responsibilities, and decision-making. If the relationship is already strained, joint ownership may prolong conflict rather than resolve it.
Goslett notes that professional guidance can make a significant difference during this process. “A property practitioner can provide neutral, practical advice on market value, selling timeframes, and realistic options. This helps bring clarity to a situation that can feel very uncertain.”
Regardless of the option chosen, it is vital for separating couples to understand the property’s current value, the outstanding bond amount, and all costs associated with selling or transferring ownership. These details form the basis of a fair agreement and can help prevent misunderstandings later on.
