Delaware Divorce With a House — Your Options (2026)

Your home is often your largest marital asset. The Separation Agreement controls what happens to it — and must be recorded with the Delaware Recorder of Deeds.

Is the Property Marital or Separate?

Purchased during the marriage with marital funds: Marital property — subject to equitable distribution (13 Del. C. § 1513).

Owned before the marriage: Generally separate — BUT marital mortgage payments may create a marital equity component that must be addressed.

Inherited or gifted to one spouse: Separate property — document carefully.

Option 1 — One Spouse Keeps the House

Separation Agreement must include:

• Full address and legal description
• Agreed fair market value (appraisal recommended)
• Mortgage balance; marital equity calculation
• Equitable shares per § 1513 factors
• Buyout: Keeping spouse pays or offsets the other's equitable share
• Mandatory refinancing deadline: Keeping spouse must refinance into sole name within [X] days of Final Decree
• Fallback provision: If refinancing fails, house listed for sale
• Quitclaim Deed from vacating spouse to keeping spouse

Recording the Deed in Delaware

1. Prepare a Quitclaim Deed (or Warranty Deed)
2. Execute and notarize
3. Record at the Recorder of Deeds in the county where the property is located:
   • New Castle County → Wilmington
   • Kent County → Dover
   • Sussex County → Georgetown
4. Fee: ~$30–$50 per document
5. Realty Transfer Tax: divorce-related spouse-to-spouse transfers may be exempt — confirm with the Recorder

Option 2 — Sell and Split the Proceeds

Separation Agreement must include:

• Net proceeds split after mortgage payoff and closing costs
• Timeline for listing after Final Decree
• Agent selection and authorization
• Occupancy and carrying costs during listing
• Price reduction authorization
• Minimum acceptable price
• Capital gains allocation

Option 3 — Deferred Sale (With Children)

Separation Agreement must include:

• Triggering event (youngest child turns 18 or specific date)
• Occupying parent responsible for all carrying costs (mortgage, taxes, insurance, maintenance)
• Non-occupying spouse's equity protection mechanism
• Capital improvement approval requirements
• Sale process when triggered

Mortgage Liability After Divorce

A Separation Agreement does not change the mortgage contract with your lender. If your ex is on the mortgage, they remain liable until the loan is refinanced. Always include:

• A mandatory refinancing deadline (90–180 days)
• A fallback sale provision if refinancing fails

Last reviewed: March 2026 | Equitable distribution (13 Del. C. § 1513) | Delaware Recorder of Deeds — New Castle/Kent/Sussex | Refinancing deadline essential | Fallback sale provision | Realty Transfer Tax exemption possible for divorce transfers | courts.delaware.gov/selfhelp

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.