Skip to main content

Can you divide owner financed property and how?

San Marcos, TX |

we owner financed a residential property earlier this year and are now divorcing, I would like to remove my name as an owner and have him buy me out. is this possible and if so where and how do we word this in the decree?

+ Read More

Attorney answers 4


If you are the buyer, there is probably a relatively small amount of equity in the property, He should probably pay you about half of that equity. If you are the sellers of this property, you have a receivable and it will have a present value, but he may not be able to get enough money to pay you off for this at the outset of the divorce. You may be stuck getting 1/2 of the monthly payment, each month until paid off.

If you did contract for deed, and have not yet transferred title, it might be easiest to at least get a deed signed by both of you sooner rather than later. This deed can be kept in escrow/safe deposit box until the property is paid off.

Every legal matter is fact specific, and there are often nuances in every case. This is intended for comment only, and does not create an attorney client relationship.


Your divorce lawyer needs to be handling this matter for you. If you don't have one, you need one (at least for this).

I assume you are the buyer. The lender has no obligation to let you off the hook (and no incentive to do so). You can, of course, ask.

You can attempt to require your husband to refinance the property in just his name. My guess is that you have owner finance for a reason and he may not be able to do so.

You can get a type of deed of trust to try to protect your interest in case your husband defaults on the mortgage, but this is not something you should attempt to handle yourself. I good family lawyer can help you.

Good luck.


You need to consult with your divorce attorney. As a practical matter, the answer is yes, but there are other concerns regarding "buying you out".


You need to hire an attorney to help you with this. If you try to do it yourself, you'll likely write an unenforceable decree and create more problems for yourself than if you just hired an attorney to do it for you. The answer is yes, you can likely get this done, but you will have to negotiate with your husband and negotiate with the owner of the property. You also probably need to have the lawyer make sure your owner financed paperwork is adequately protecting you as well.

The information provided here is for general information only and this does not constitute legal advice. You should consult an attorney of your choosing to determine your specific legal options and decisions. Do not only rely on answers here - speak to an attorney.