Selling Your Knoxville House During Divorce

Divorce is hard enough without adding a complicated home sale to the mix. If you and your spouse own a home in Knoxville, you'll need to decide what to do with it—and that decision often becomes a point of contention.

This guide explains Tennessee's property division laws, your options for the marital home, and why a fast cash sale often provides the cleanest path forward for divorcing Knoxville couples.

Tennessee Property Division Law

Equitable Distribution State

Tennessee is an equitable distribution state. This means marital property is divided "equitably" (fairly), which doesn't always mean 50/50. Courts consider factors like:

• Length of the marriage
• Each spouse's contributions (financial and non-financial)
• Economic circumstances of each spouse
• Age and health of each spouse
• Earning capacity and employability
• Contributions to the other spouse's education or earning power

Marital vs. Separate Property

Marital property includes assets acquired during the marriage, regardless of whose name is on the title. Your Knoxville home is likely marital property if purchased during the marriage.

Separate property includes assets owned before marriage or inherited/gifted to one spouse. However, if separate property has been commingled (e.g., both spouses paid the mortgage), it may become marital property.

Home Equity Calculation

Home equity = Current market value - Remaining mortgage balance

Example:

• Knoxville home value: $350,000
• Mortgage balance: $180,000
• Equity: $170,000
• If divided 50/50: $85,000 each

Your Options for the Marital Home

Option 1: One Spouse Buys Out the Other

How it works: One spouse keeps the home and pays the other their share of equity.

Pros:

• Continuity for children
• No need to sell in a cooling market
• Faster resolution if buyout is affordable

Cons:

• Requires refinancing to remove other spouse from mortgage
• Buying spouse needs cash or assets for buyout
• Disagreements about home value

Option 2: Sell and Split Proceeds

How it works: Sell the home, pay off mortgage, divide remaining proceeds.

Pros:

• Clean break—no ongoing ties
• Both parties get liquid assets
• Objective market determines value

Cons:

• Traditional sales take 74+ days in Knoxville
• Disagreements about pricing, repairs, staging
• Uncertainty delays divorce settlement

Option 3: Deferred Sale (Co-Own Temporarily)

How it works: Both spouses remain on title; one lives there until a trigger event (e.g., children finish school).

Pros:

• Stability for children
• Wait for better market conditions

Cons:

• Ongoing financial entanglement
• Disputes about maintenance costs
• Prevents clean financial break

Why Cash Sales Work for Divorce

Objective, Transparent Pricing

When multiple investors submit competing offers, both spouses see the same numbers. There's no argument about what the house is "really worth"—the market tells you.

Speed Allows Faster Settlement

A traditional Knoxville sale takes 74+ days. A cash sale closes in 7-14 days. Faster closing means faster divorce settlement and lower legal fees.

No Staging or Repair Disputes

Cash buyers purchase as-is. No arguments about who pays for repairs, whether to stage, or whose furniture stays. The house sells in current condition.

No Showings Drama

Traditional sales require coordinating showings—awkward when one spouse still lives there. Cash sales typically involve one walk-through, then closing.

Certainty in an Uncertain Time

Traditional sales can fall through due to financing, inspection issues, or cold feet. Cash offers are certain—once accepted, closing is virtually guaranteed.

The Divorce Home Sale Process

Step 1: Both Parties Agree to Sell

You'll need agreement (or a court order) that the home will be sold. Document this in your divorce agreement.

Step 2: Submit Property for Offers

Either party (or both together) can submit the property to receive cash offers. The process takes 2 minutes.

Step 3: Review Offers Together

All offers are visible to both parties. Compare price, closing timeline, and terms. Attorneys can review.

Step 4: Accept Best Offer

Both parties sign acceptance. The buyer sends a purchase agreement.

Step 5: Close and Distribute

At closing, the mortgage is paid off and remaining proceeds are distributed according to your divorce agreement.

Common Issues and Solutions

One Spouse Refuses to Sell

If you can't agree, you can petition the Knox County court to order a sale. Courts generally favor liquidation when spouses can't agree, as forced co-ownership rarely works.

Disagreement About Price

Multiple competing offers provide objective market validation. If one spouse thinks the house is worth more, the offers prove (or disprove) that belief.

Mortgage Is Underwater

If you owe more than the home's value, you'll need to bring cash to closing or pursue a short sale (lender accepts less than owed). Consult your attorney about implications.

One Spouse Lives in the Home

Cash sales minimize disruption. Coordinate a closing date that gives the occupying spouse time to relocate, typically 14-30 days.

Next Steps

1. Consult your divorce attorney about property division strategy
2. Agree on selling approach with your spouse (if possible)
3. Get competing offers to establish objective market value
4. Review offers together and select the best option
5. Close and move forward with your lives

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult with a Tennessee divorce attorney for advice specific to your situation.