Who Pays the Mortgage and Repairs While the House Is Listed During a Divorce in Henderson?

By Mike Tchobanian, Broker and Owner, Vegas Capital Realty | The Tchobanian Group | Certified Divorce Real Estate Expert (CDRE)

This question comes up in almost every divorce listing I take. One spouse moved out and does not want to keep paying for a house they do not live in. The other is living there and says they cannot cover it alone. Meanwhile the house still needs to be cleaned, fixed up and shown. Here is how I handle it.

1. The court order decides, not the Realtor

Many orders spell out who pays the mortgage, HOA, insurance and utilities while the house is for sale, and whether those payments get credited back from the proceeds. Some orders say nothing at all. Before we list, I contact both attorneys and ask for the court order or settlement agreement and any instructions on how the proceeds will be split.

When a client asks me who should pay for the water heater or whether they get their down payment back, my answer is always the same: ask your lawyer. I stay neutral and I do not take sides on legal questions. That is what keeps the sale moving.

2. A court order does not change the loan

This surprises a lot of people. A judge can order one spouse to make the payments, but a judge cannot remove a name from a loan or make the bank lend. If both of you signed the mortgage, the bank can come after both of you if it goes unpaid. Missed mortgage payments can damage the credit of anyone responsible for the loan, making it harder to buy or rent another home.

So whoever is supposed to pay, make sure it actually gets paid. If you are the spouse who moved out, ask your attorney how you can confirm the payments are current.

3. Get the real numbers first

Early in the process, I coordinate with the title company to review the preliminary title report and obtain current mortgage payoff information through the appropriate authorized parties. We also check for HOA balances, solar financing, taxes, judgments and other obligations that could affect the seller's proceeds. Then we prepare an estimated net sheet so everyone understands the financial picture.

Attorneys and spouses often work from a mortgage statement and an online estimate of value. The real numbers can tell a very different story, and everyone needs to see them before deciding who pays what.

4. Carrying costs to plan for

While the house is listed, these bills keep coming:

• Mortgage payment, including taxes and insurance if they are in escrow
• HOA dues, which are common in Henderson communities
• Homeowners insurance, which must stay active, especially if the house is vacant
• Utilities, which need to stay on for showings and the buyer's inspection
• Yard, pool and basic upkeep so the house shows well

I put the cost and repair plan in writing and send it to both spouses and both attorneys, so nobody is surprised later.

5. Repairs before listing: spend only where it helps

I focus on improvements that are likely to make the property easier to sell or improve the net proceeds, without spending money unnecessarily. That usually means curb appeal, a deep clean, carpet, paint where it is needed and light staging. I generally avoid major renovations unless the numbers clearly justify the investment. Both spouses get the same recommendation, in writing, at the same time.

When neither spouse wants to pay for preparation costs: we review the options with both attorneys. Depending on the circumstances, there may be ways to arrange payment for approved work at closing. Any arrangement must be properly documented and approved before work begins.

6. Repairs after the buyer's inspection

When a buyer requests repairs, I first get estimates and review the options with both parties. When the buyer's financing allows it, a closing cost credit can sometimes be easier than coordinating repairs during an already stressful divorce. It can take two arguments off the table: who does the work and who pays for it. Some repairs may still be required by the buyer's lender or appraisal.

A hypothetical example

Here's a hypothetical example of how these issues can affect a divorce sale. One spouse has moved out of a Henderson home and stops paying half the mortgage. The spouse still living there falls a month behind. Both attorneys assume there is plenty of equity. When the real payoff and title report come back, there is less equity than anyone thought, and the mortgage is behind, putting both borrowers at risk of credit damage. With the numbers on paper, the attorneys can sort out who pays and how it is credited at closing, the payments are brought current, the prep work is agreed in writing, and the house goes on the market instead of sitting in a standoff.

Mistakes I see couples make

• Stopping payments to make a point. The bank does not care whose turn it is. Both of you pay for it.
• Spending money on big repairs before getting a written plan both spouses agree to.
• Negotiating with each other instead of letting the attorneys and the Realtor handle it.
• Assuming the equity is there without a real payoff and title report.

Frequently asked questions

Do I have to keep paying the mortgage if I moved out?

If your name is on the loan, the bank can hold you responsible no matter who lives there. Who should pay between the two of you is decided by your court order or your attorneys. Ask your lawyer before you stop paying anything.

Can we use the sale proceeds to pay back the spouse who covered the bills?

Often, yes, if the court order or settlement agreement says so. The attorneys decide that, and escrow follows their written instructions at closing.

What if neither of us can afford repairs before listing?

Keep the work to what is likely to help the sale, and review the options with both attorneys. In some cases, approved work can be paid at closing if it is properly documented and approved before work begins.

Talk to Mike

Going through a divorce and need to sell your Las Vegas or Henderson home?

Before you and your spouse spend more time arguing over mortgage payments and repairs, let's get the property numbers together and set a selling plan.

Call or Text Mike at 702-530-5844

Or schedule a seller consultation. I'll coordinate with both attorneys and help keep the real estate transaction moving.

Mike Tchobanian is a licensed real estate broker and Certified Divorce Real Estate Expert, not an attorney or financial advisor. This article is general information and not legal advice. Talk with your Nevada family law attorney about your situation.

Related: Who is the best Realtor to sell a home during a divorce in Las Vegas? | How do you sell a house during a divorce? | What does it cost to sell a house in Las Vegas?