Selling a House During Divorce in Minnesota: A Neutral, As-Is Option

A divorce is hard enough without also figuring out what to do with the house. Maybe you both agree it needs to sell. Maybe one of you has already moved out, and nobody wants to pay for repairs.

I’m Troy Molde, owner of Henry Home Buyer in Lakeville. I buy houses for cash, as-is, all over the Twin Cities metro. If you’re trying to figure out how to sell your house during a divorce in Minnesota, this page covers how the process generally works, your options, and when a direct cash sale makes sense (and when it doesn’t).

One thing up front: I don’t take sides. I treat both spouses the same way, and I’m glad to work through your attorneys.

How Selling the Marital Home Works in a Minnesota Divorce

Minnesota divides marital property “justly and equitably.” Minnesota isn’t a community-property state. The court makes a just and equitable division of marital property, which isn’t always a 50/50 split (Minn. Stat. § 518.58). Whether a house is marital, non-marital or partly both depends on things like when it was bought and how it was paid for (§ 518.003). Those are questions for your attorneys, not for me.

Once the case starts, neither spouse should sell on their own. When the divorce summons is served, temporary restraining provisions automatically apply to both spouses. In general, neither may dispose of assets except for the necessities of life, by written agreement, or to pay for an attorney (§ 518.091). So selling while the case is pending usually means you both agree in writing, or the court orders it. A judge can also order the homestead sold during the case if that’s needed to preserve the marital assets (§ 518.58, subd. 3).

Both spouses usually sign, even if only one name is on the title. A married owner generally can’t convey the homestead without both spouses’ signatures (Minn. Stat. § 507.02). The title company will confirm who needs to sign.

After the divorce, the decree controls. The judgment and decree says who owns the house and on what terms. The real estate part is often recorded as a summary real estate disposition judgment (§ 518.191). If it says the house is to be sold, it may also say how the price gets approved and how proceeds are split.

The mortgage is separate. A decree can award the house to one spouse, but it doesn’t change who owes the lender. A sale pays the mortgage off at closing.

Please note: I’m a home buyer, not an attorney, and nothing on this page is legal advice. Every divorce is different, so talk with a Minnesota family law attorney before you make decisions about the house or sign anything.

Your Main Options for the House

One spouse keeps it, usually by refinancing and buying out the other’s share, or balancing it with other assets.
List it with an agent. For a house in good shape, this often brings the highest price, if you can agree on price, repairs and showings.
Sell it directly, as-is. Fewer things to agree on: one price, no repairs, no showings and one closing date.
Keep it for now and sell later. If you do, your agreement should spell out who pays the mortgage, taxes, insurance and repairs in the meantime.

When a Cash, As-Is Sale Makes Sense in a Divorce

You can’t agree on repairs or price. A written offer gives you both one number to look at.
One of you has moved out and the house is costing you both. The mortgage, taxes, insurance and upkeep keep coming every month.
The house needs serious work. Water damage, an old roof, foundation problems, a house packed with belongings or years of deferred maintenance.
You want a clean, certain split. One sale and one settlement statement, with proceeds handled the way your agreement or court order says.
One spouse now lives out of state. Nobody has to fly back for showings or contractors.

How My Process Works

You deal with me from start to finish, not a call center.

Call or reach out. Tell me about the house and where you are in the divorce. It’s fine if your case is still in progress.
Walkthrough. I’ll meet one or both of you, or anyone you choose, at the house. No cleaning needed.
A written cash offer. I explain how I got to the number and put it in writing so you, your spouse and your attorneys can review it. I’ll send it however you prefer: one email to both of you, or separate emails to each spouse (and your attorneys, if you want). No pressure and no deadline. If the inspection turns up something we didn’t know about, the price can change, and I’ll explain why.
Signatures. Both spouses sign, or the sale goes forward as your court order directs.
A closing date that fits your case. I pay with my own funds, so there’s no lender, no appraisal and no financing contingency to fall through.
Take what you want, leave the rest. Nothing needs to be cleaned out or repaired.
Close with a trusted title company. You pay no agent commissions. I pay the closing costs, including the state deed tax, and the fee for any required city point-of-sale inspection (about 11 local cities require one). The title company pays off the mortgage and any liens and pays out the proceeds as your agreement or order says. A spouse who lives out of state doesn’t need to attend closing. The title company can arrange a remote notary.

When You Should List With an Agent Instead

I’d rather be honest than win every deal. If the house is in good shape and you two can agree on the details, you’ll likely net more by listing with a good real estate agent. I’ll tell you that if it’s true.

What to Expect From My Cash Offer

Selling your house as-is to me is a lot like trading in a car at a dealership. You’ll get less money than you would selling it yourself, but it’s a lot faster and easier.

My cash offer will be quite a bit lower than what someone buying the house to live in would pay. That’s because I’m buying it to fix up and resell for a profit, just like you see on the TV shows. In exchange, you skip the repairs, the cleanout, the showings and the agent fees.

If your house is in good shape and getting top dollar matters most, listing with an agent will be the better choice. I’m happy to tell you honestly which way I think makes more sense.

Frequently Asked Questions

Can we sell our house before the divorce is final in Minnesota?

Usually, yes, if you both agree in writing or the court orders the sale.

Does my spouse have to sign if the house is only in my name?

Often, yes. Minnesota law generally requires both spouses’ signatures to sell a homestead, even when only one spouse is on the title.

What if we owe more than the house is worth?

Then the lender would have to agree to accept less than the full payoff, called a short sale. Talk with your attorney, and consider a free HUD-approved housing counselor.

How are the proceeds split?

That’s up to your agreement or the court, not me. The title company pays off the mortgage and closing items, then pays out the rest as your agreement or order directs.

Do we have to clean out or fix the house first?

No. I buy houses completely as-is. Each of you can take what you want and leave the rest.

Talk With Troy About Selling Your House

Henry Home Buyer is a local home buyer based in Lakeville. If you’re going through a divorce anywhere in the Twin Cities metro, call me. You’ll get a written offer you can both review, and no pressure.

Call Troy at (612) 430-8822 or fill out the form on this page to get started.

Disclaimer: Henry Home Buyer is a real estate investment company, not a law firm, and Troy Molde is not an attorney. The information on this page is general information about selling a house during a divorce in Minnesota, provided for educational purposes only. It is not legal, financial or tax advice, may not reflect the most current law, and does not create an attorney-client relationship. For advice about your situation, please consult a licensed Minnesota family law attorney and, for tax questions, a tax professional.

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