Selling Your Memphis House During Divorce: Complete Guide (2026)

Divorce is emotionally and financially challenging. One of the biggest decisions you'll face is what to do with your Memphis home—often your largest shared asset. Selling quickly can provide a clean financial break, but the process is complicated when two people who may not be communicating well need to agree.

This guide covers your options, Tennessee law, and how to sell your Memphis home during divorce with minimal conflict and maximum proceeds.

Tennessee Property Division Law

Understanding how Tennessee divides property helps you know what to expect and plan accordingly.

Equitable Distribution State

Tennessee is an "equitable distribution" state—meaning marital property is divided fairly, but not necessarily 50/50. The court considers multiple factors when determining what's equitable:

• Length of the marriage
• Each spouse's economic circumstances
• Each spouse's contribution to the marriage (including homemaking)
• Value of each spouse's separate property
• Whether the home is where minor children reside
• Tax consequences of the property division

Marital vs. Separate Property

Marital property (subject to division):

• Home purchased during marriage, regardless of whose name is on the deed
• Equity accumulated during marriage on pre-marital property
• Home improvements made with marital funds

Separate property (not divided):

• Home owned before marriage (in some cases)
• Home received as inheritance or gift to one spouse only
• Property excluded by valid prenuptial agreement

Automatic Temporary Restraining Orders

When a divorce is filed in Shelby County, automatic restraining orders go into effect that prohibit both parties from:

• Selling, transferring, or disposing of marital property
• Dissipating or hiding assets
• Taking on unusual debts

This means you cannot unilaterally sell your Memphis home once divorce proceedings begin without your spouse's agreement or court permission.

Your Options for the Marital Home

During divorce, you typically have three options for the family home:

Option 1: Sell and Split Proceeds

Best for: Most divorcing couples, especially when neither can afford the home alone or a clean financial break is desired.

Advantages:

• Clear, definitive split of the asset
• No ongoing financial ties
• No disputes about current home value
• Both parties can move forward independently

Disadvantages:

• Must find new housing during an already stressful time
• May need to sell during a suboptimal market
• Children may need to change schools

Option 2: One Spouse Buys Out the Other

Best for: When one spouse wants to keep the home and can afford it independently.

How it works:

1. Determine current home value (appraisal recommended)
2. Calculate equity (value minus mortgage balance)
3. Paying spouse gives other spouse their share of equity
4. Paying spouse refinances mortgage into their name only
5. Deed transferred to remaining spouse

Challenges:

• Buying spouse must qualify for refinance alone
• Need liquid funds to pay other spouse's equity share
• Disagreements about home value can complicate negotiations

Option 3: One Spouse Keeps Home as Part of Division

Best for: When keeping the home is important (usually for children's stability) and can be offset against other assets.

Example:

• Home equity: $100,000
• Retirement accounts: $100,000
• One spouse takes home; other takes retirement

Risks:

• Keeping spouse remains liable on mortgage with ex-spouse
• Future disputes if keeping spouse can't make payments
• Tax implications may differ between assets

How to Sell Your Memphis Home During Divorce

If you've decided selling is the right choice, here's how the process typically works:

Step 1: Establish Legal Authority to Sell

Before listing, confirm you have the legal right to sell:

• Both spouses agree: Simplest scenario—both sign listing agreement and closing documents
• Court order: If spouses can't agree, you may need to petition the court to order the sale
• Settlement agreement: Sale terms can be part of your divorce settlement

Step 2: Agree on Sale Terms

Before listing, try to agree on:

• Minimum acceptable sale price
• Who will handle showings and decisions
• How proceeds will be divided
• What happens if the home doesn't sell

Put agreements in writing, preferably through your attorneys.

Step 3: Choose Your Sale Method

Traditional sale with an agent:

• Timeline: 3-6 months
• Net: ~93-95% of sale price (after commissions)
• Requires: Repairs, staging, showings, coordination

Cash sale to investors:

• Timeline: 7-21 days
• Net: 70-85% of market value
• Requires: Minimal coordination, no repairs

For divorcing couples, cash sales often make sense due to reduced conflict and faster resolution.

Step 4: Complete the Sale

1. Accept an offer (both spouses must sign)
2. Buyer completes due diligence
3. Title company prepares closing documents
4. Both spouses sign at closing (can be done separately if needed)
5. Proceeds disbursed per agreement

Getting Both Spouses to Agree

The biggest challenge in divorce home sales is often getting agreement. Here are strategies that help:

When You Can Agree

• Use a neutral third party: A mediator or both attorneys can facilitate decisions
• Focus on facts: Get an appraisal so value isn't disputed
• Set clear parameters: Agree on minimum price and timeline upfront
• Designate one point of contact: Reduces communication friction

When You Can't Agree

If your spouse refuses to cooperate on selling:

1. Mediation: Court-ordered or voluntary, a mediator can help reach agreement
2. Motion to sell: Your attorney can petition the court to order the sale
3. Court-appointed sale: Judge may order sale and appoint someone to manage it

Courts generally favor selling marital homes when neither party can afford it alone or when sale is in both parties' financial interest.

What If One Spouse Is Living in the Home?

Common scenario: one spouse moves out, the other remains. This creates complications:

• Living spouse may resist selling
• Showings become contentious
• Living spouse may not maintain property

Solutions:

• Set a move-out date in your settlement agreement
• Specify that living spouse must allow showings with notice
• Consider cash sale to avoid showing complications

Why Cash Sales Work for Divorce

Traditional home sales can drag on for months—adding stress to an already difficult situation. Here's why cash sales are often ideal for divorcing couples:

Benefits of Cash Sales in Divorce

Reducing Conflict Points

Every decision in a traditional sale is a potential conflict:

• "Should we fix the roof?" "No, that's too expensive."
• "We need to lower the price." "No, let's wait."
• "That buyer's offer is good." "I want more money."

Cash sales reduce these conflict points. You receive clear offers, evaluate them together, and make one decision. Done.

Dividing Sale Proceeds

How sale proceeds are divided depends on your divorce agreement or court order.

Typical Division Process

1. Sale proceeds go to title company escrow
2. Mortgage payoff deducted
3. Closing costs deducted (or buyer pays with cash sale)
4. Any liens or judgments paid
5. Remaining funds split per agreement

Common Division Arrangements

• 50/50 split: Most common for equal-contribution marriages
• Offset against other assets: One spouse takes more home equity, other takes more of another asset
• Unequal split: May be ordered based on circumstances (child custody, income disparity, etc.)

Example Proceeds Division

Cash sale scenario:

• Sale price: $140,000 (cash offer)
• Mortgage payoff: $85,000
• Closing costs: $0 (buyer pays)
• Remaining: $55,000
• Each spouse receives: $27,500

Timeline Considerations

Selling Before vs. During vs. After Divorce

Before divorce is filed:

• Pros: More flexibility, no automatic restraining orders
• Cons: No legal framework for division yet; requires high cooperation

During divorce proceedings:

• Pros: Sale terms can be part of settlement; attorneys can help negotiate
• Cons: Automatic restraining orders require agreement or court approval

After divorce is final:

• Pros: Clear ownership and division terms
• Cons: If decree requires sale, both must cooperate; longer total timeline

Coordinating with Your Divorce Timeline

Tips for timing the sale:

• Start gathering information early: Get comps, understand your equity
• Discuss sale in mediation: Address home sale as part of overall settlement
• Build in flexibility: Cash sales can close quickly once both parties agree
• Consider tax implications: Selling in same year as divorce may have different tax treatment

Frequently Asked Questions

Can I sell my house during divorce in Tennessee?

Yes, but both spouses typically must agree unless the court orders the sale. Once divorce is filed, automatic temporary restraining orders prevent either spouse from selling without consent or court approval.

What if only my name is on the deed?

In Tennessee, property acquired during marriage is generally marital property regardless of whose name is on the deed. Your spouse likely has ownership rights and must agree to sell or the court must order the sale.

What if my spouse won't agree to sell?

You have options: mediation, negotiation through attorneys, or petitioning the court to order the sale. Courts generally favor selling when it's in both parties' financial interest.

Can we sell before the divorce is finalized?

Yes, if both parties agree or the court permits. Proceeds are typically held in escrow or split per a temporary agreement until the divorce is final.

How are sale proceeds divided?

Per your settlement agreement or court order. Tennessee is an equitable distribution state, so the split is based on fairness considering all factors—not automatically 50/50.

Can I make my spouse move out so we can sell?

Not unilaterally. You may need a court order for exclusive possession if safety is a concern. Otherwise, both spouses typically have the right to remain in the marital home until sale or divorce agreement says otherwise.

What if we owe more than the house is worth?

You may need to bring cash to closing, pursue a short sale with lender approval, or include the deficiency in your divorce settlement. Consult your attorney about how underwater assets affect your overall property division.