The legal and financial process where one party in a dissolution of marriage agreement purchases the other party’s ownership interest in a marital home. This transaction effectively transfers full ownership to the buying party, removing the other party from the title and mortgage obligations, if applicable. As an example, if a couple jointly owns a house, and during their divorce one partner wants to remain in the house, they may pursue this option by compensating the departing partner for their share of the property’s equity.
This resolution can provide stability for children remaining in the home and allows one party to maintain their residence without the need for relocation during a stressful period. The process facilitates a clean break in asset division, preventing ongoing co-ownership conflicts. Historically, this practice has become increasingly common as divorce rates have risen, necessitating mechanisms for fair and equitable property division.