What Happens to the House During Divorce?

Divorce doesn’t just change your relationship status—it can completely upend your housing situation. Whether you're figuring out who stays in the marital home, wondering if you should sell, or scrambling to find a new place on a single income, your next move involves more than just real estate logistics. In Nebraska, where equitable distribution of marital property applies, your home is both a legal asset and a deeply emotional one. Decisions about the house carry financial, legal, and psychological weight.

For many people, the home is their biggest shared asset. But it’s also the place where milestones happened, kids grew up, and lives were built. So while Nebraska courts may treat the property like a spreadsheet item, you don’t have to. There are legal steps to protect yourself—but also space to honor how hard this can feel. In this post, we’ll walk through your options when it comes to dividing the marital home in a Nebraska divorce—from selling or buying out equity, to creative co-parenting arrangements like bird nesting. We’ll also cover what the July 2025 housing market means for divorcing families, the risks of moving out too soon, and how to start thinking about the kind of home you’ll need next.

Understanding the Marital Home in Nebraska Divorce

In Nebraska divorce law, the marital home is typically considered part of the marital estate—meaning it’s subject to equitable distribution. That doesn’t always mean a 50/50 split. Instead, Nebraska courts look at what’s fair based on your specific circumstances. If the home was purchased during the marriage, it’s generally treated as marital property. If it was acquired before the marriage, or by gift or inheritance, it may be considered separate property—but even that can shift if marital funds were used for the mortgage, renovations, or upkeep.

In short, the legal side can get nuanced. But emotionally, it’s rarely simple either. For many, the house is the place where holidays happened, babies were raised, or grief was processed. You’re not just dividing walls—you’re letting go of the life that happened inside them.

Should You Sell, Stay, or Restructure?

Some people want to stay in the home and buy out their spouse’s share. Others agree to sell and divide the proceeds. And when kids are in the picture, some families try creative temporary options, like bird nesting. There’s no one-size-fits-all approach for real estate during divorce in Nebraska—it depends on financial ability, legal agreements, parenting schedules, and personal readiness.

How Bird Nesting Works (and When It Doesn’t)

Bird nesting means the kids stay in the home full-time while parents rotate in and out on a schedule. It can minimize disruption for the children but requires very clear boundaries—who pays what, how chores and groceries are handled, and where each parent lives while “off-duty.” Often, parents rent a small apartment together or stay with friends or family during their off time. It’s usually a short-term fix, not a long-term solution, and should be laid out in writing to protect everyone involved.

Renting vs. Buying During or After Divorce

If your divorce isn’t finalized, buying a new home can be complicated. Mortgage lenders want clear numbers—income, spousal support, child support—and those details often aren’t finalized yet. Renting for a while can buy you time to regroup financially and emotionally, without rushing into a major investment.

Before moving out of the marital home, check with your attorney. Leaving the house too soon can affect your rights in property division or even custody arrangements. In some cases, it may look like you’re abandoning your claim.

Current Housing Market Trends (Updated July 2025)

The July 2025 real estate landscape may work in your favor—whether you're renting or buying. Here's what we know:

• Mortgage rates remain high, averaging 6.74% on a 30-year fixed loan. Rates are expected to hover here through the rest of the year.

• Home inventory is up nearly 29% year-over-year, offering more choices and slightly less competition.

• The national median home price is about $435,300, up 2% from last year.

• U.S. average rent is approximately $2,100/month, while in Nebraska, rent averages around $1,091/month.

• In Lincoln, average rent ranges from $1,063 to $1,090/month, still well below national averages and up 3–4% year over year.

With more housing options available and rent in Nebraska staying relatively affordable, renting short-term while finalizing your divorce could help you avoid financial pressure and make smarter decisions down the road.

Legal Risks of Moving Out Too Soon

One of the biggest missteps in a Nebraska divorce is moving out without a plan. Even if things feel tense, leaving the marital home before custody, property, or financial agreements are in place can impact your legal rights—especially if kids are involved or your name is still on the title or lease. Always talk to your divorce attorney before making a move.

Choosing the Right Next Chapter

Where you move next shouldn’t just be about what’s available or affordable. Think about what supports your wellbeing. Are you staying close to your kids’ school? Is the neighborhood safe and stable? If you’re starting over on your own, what kind of space gives you room to breathe, heal, and grow?

This isn’t about rushing to rebuild. It’s about choosing what fits now.

You’re Not Alone in This

Making housing decisions during divorce is difficult, but you don’t have to figure it all out on your own. Whether you’re trying to keep the house, ready to sell, or somewhere in between, I’m here to help you make a plan that reflects both your legal rights and your personal goals.

FAQ: Real Estate During Divorce in Nebraska

Is the house always split 50/50 in a Nebraska divorce?
No. Nebraska follows equitable distribution—not equal distribution. The goal is fairness, not sameness.

Can I buy a new house before the divorce is finalized?
Technically yes, but it’s rarely advised. Lenders require finalized court orders and support numbers, and buying now can complicate asset division.

Can we “bird nest” while divorcing in Nebraska?
Yes, but it’s a short-term fix. It requires strong boundaries and should be backed up by a written agreement.

What if I move out of the marital home before our divorce is final?
Moving out can affect both custody and property division. It’s not always harmful, but you need to understand the risks. Talk to your lawyer first.

Will the court make us sell the house?
Possibly. If one spouse can’t buy the other out, or if an agreement can’t be reached, the court may order a sale and divide the proceeds.

Is an inherited house always separate property?
Generally yes—but if marital funds were used to pay the mortgage or make improvements, that may shift things. Talk to your lawyer about how commingling might apply.

Ready to Discuss Your Housing Options in a Nebraska Divorce?

Understanding your rights and options for the marital home is critical. As an experienced Nebraska divorce attorney, I help clients navigate the legal, financial, and emotional aspects of divorce every day. Contact me for a confidential consultation to talk through your next step.