Montana Dissolution With a House — Your Options (2026)

Your home is typically your largest marital asset. The Separation Agreement controls what happens to it.

Is the Property Marital or Separate?

Purchased during the marriage with marital funds: Marital property — subject to equitable distribution.

Owned by one spouse before the marriage: Generally separate property — BUT Montana courts can consider and divide separate property if equity requires. Marital mortgage payments also create a marital equity component.

Inherited or gifted to one spouse: Generally separate — document carefully.

Option 1 — One Spouse Keeps the House

Separation Agreement must include:

• Full property address and legal description
• Agreed fair market value (professional appraisal recommended)
• Mortgage balance; marital equity calculation
• Each spouse's equitable share
• Buyout: Keeping spouse pays or offsets the other's equitable share
• Mandatory refinancing deadline: Keeping spouse must refinance into sole name within [X] days
• Fallback provision: If refinancing fails, home listed for sale
• Quitclaim Deed from vacating spouse to keeping spouse — recorded at Montana County Clerk and Recorder

Recording the Deed in Montana

1. Prepare a Quitclaim Deed (or Warranty Deed)
2. Execute and notarize
3. Record at the County Clerk and Recorder of the county where the property is located
4. Fee: approximately $8–$15 per page
5. Montana does not have a state deed transfer tax — confirm with the local County Clerk and Recorder

Option 2 — Sell and Split the Proceeds

Separation Agreement must include:

• Net proceeds split (equitable shares after mortgage payoff and closing costs)
• Timeline for listing after Final Decree
• Agent selection
• 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
• Non-occupying spouse's equity protection
• Capital improvement approval and cost-sharing
• Sale process at triggering event

Last reviewed: March 2026 | Equitable distribution (MCA § 40-4-202) | Montana can divide separate property if equitable | Refinancing deadline essential | Montana County Clerk and Recorder — county-level recording | ~$8–$15/page | No state deed transfer tax | courts.mt.gov/Self_Help/Family_Law

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