Divorce and the Family Home: How to Navigate a Buyout in the Coachella Valley

Divorce is never easy—emotionally or financially. One of the most significant decisions divorcing couples face is what to do with the family home. For many in the Coachella Valley, the house isn’t just a structure—it’s a place filled with memories, milestones, and meaning. So when one party wants to keep the home, the next step is figuring out how to buy out the other person’s share. At MortgageWorks, we walk our clients through this process with care, clarity, and confidence. Here’s how it works—and how to make it work for you.

Understanding a Divorce Buyout

In a divorce, if both parties own the home together and one wants to stay, they typically need to "buy out" the other person’s equity. This means refinancing the mortgage in their name alone and paying the departing spouse their fair share of the home’s current value.

Let’s say you bought a home together in Palm Desert for $500,000 and have $300,000 left on the mortgage. If the home is now worth $600,000, there’s $300,000 in equity. That means the departing spouse is entitled to $150,000. The staying spouse would refinance into a new loan for $450,000: $300,000 to pay off the existing mortgage and $150,000 to buy out their ex.

Why Refinancing Is Key

To move forward, the spouse keeping the home must qualify for the mortgage on their own. That means income, credit score, debt-to-income ratio, and other financial qualifications all matter. Divorce can complicate these factors, especially if household income drops or one party has been out of the workforce.

This is where working with an experienced lender like MortgageWorks is crucial. We help you gather the right documentation, analyze your financial position, and find the best loan option to move forward without delay. In some cases, we may also be able to use spousal support as qualifying income—depending on its terms and history.

Timing Matters in a Buyout

Once the divorce decree is finalized and the property settlement agreement is in place, the refinancing process can begin. But in the Coachella Valley, where property values can shift and refinancing conditions may change based on interest rates, timing is everything. We recommend beginning conversations with a mortgage professional before the ink is dry. That way, you’ll be prepared with real numbers and a clear path to keeping the home.

Avoiding Common Pitfalls

Here are some common mistakes we help clients avoid:

1. Not knowing the current home value

Many couples rely on outdated information or online estimates. We can connect you with a trusted local appraiser to ensure accuracy.

2. Assuming the other spouse remains on the loan

A buyout typically involves refinancing, which legally removes the other party from the mortgage. This protects both individuals financially and prevents complications down the road.

3. Delaying the refinance

The longer you wait, the more variables can change—like interest rates, property values, and financial qualification standards.

Real Support in a Difficult Season

At MortgageWorks, we’re more than just loan officers. We’re trusted advisors helping Coachella Valley families navigate one of the most emotional and financially complex times of their lives. Our team provides step-by-step guidance with compassion and professionalism.

Whether you live in Indio, Palm Springs, La Quinta, or anywhere in between, we’ll help you evaluate your options and secure a loan that supports your future stability.

Ready to Take the Next Step?

If you’re going through a divorce and wondering whether you can afford to keep the house, or how to move forward with a buyout, let’s talk. Every situation is different, and we’ll work with you to create a customized solution.

Call MortgageWorks today to schedule a confidential consultation with Art Alvarez and get the answers you need—on the house.

Frequently Asked Questions

What if I don’t qualify to refinance on my own?
You may still have options, such as adding a co-signer, restructuring debts, or exploring a temporary shared ownership arrangement until you’re ready. We’ll walk you through every possible path.

Can we split the equity another way?
Yes, if both parties agree, the buyout amount can be adjusted based on other assets or agreements in your divorce settlement. It’s best to work closely with your attorney and lender together.

Do I need to refinance right away?
Ideally, yes. The longer your ex remains on the mortgage, the more financial and legal risk both parties face. Refinancing promptly creates a clean break and gives you full ownership control.

Does this apply to homes with FHA or VA loans?
Yes, but the refinance must meet those program guidelines. In some cases, special rules apply—especially with VA entitlements. We’re well-versed in both and can advise accordingly.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.