Yes, a home equity investment could pay your spouse their share of the equity so you keep the house, with no new monthly payment and no income requirement. Splitero and Unlock both list divorce buyouts as a use for their agreements.
Two catches. Your spouse will likely have to sign some documents, and on a bigger equity split the HEI may only cover part of what you owe them.
Our take: An HEI is worth a look if you’d struggle to qualify for a cash-out refinance on one income and you plan to stay in the home for years. Get the buyout number settled with your attorney first, then see whether an HEI covers it after fees. And know that you’ll carry the full settlement cost on your own later.
How an HEI divorce buyout works
You and your spouse agree on what the home is worth and how the equity splits. You keep the house. An HEI company gives you a lump sum, and that cash goes to your spouse for their share.
You don’t make monthly payments to the company. When you eventually sell, refinance or settle with savings, the company earns its agreed percentage of the home’s value at that time.
Why not just refinance? Plenty of people can’t, at least not right away. Splitero points out that an HEI could help when qualifying for a traditional refinance on a single income is the hard part, since it doesn’t ask for income documents.
Get more than one value on the house, too. One homeowner on Reddit (u/Busy_Cranberry_2438) said that during their divorce settlement, Point’s third-party appraiser valued the home $60k above several other appraisals done around the same time. The catch was Point’s share, 74.4% of future equity on the full amount, so they went with Splitero instead at 40.2% of future appreciation.
Which companies allow a divorce buyout
| Company | What it says about divorce buyouts | Good to know |
|---|---|---|
| Splitero | Yes, in certain scenarios. It could help you buy out a spouse’s equity without selling or taking on new monthly payments. | May ask for your divorce decree or separation agreement. Your spouse may need to sign closing documents. |
| Unlock | Yes. It calls an HEA a practical way to buy out a spouse’s share without selling or taking on monthly payments. | Everyone on title signs at origination, and a spouse not on title may need to sign too. |
| Hometap | Its pages don’t address new buyouts, but it doesn’t restrict how you use the funds. | For an existing investment, it works with a title partner to add or remove an ex-spouse. |
From each company’s own FAQ or blog pages.
Splitero serves 17 states and Unlock 26. Not sure which reaches you? Our Splitero review and Unlock review list them, and our company comparison covers the rest.
Get a Splitero estimate. Splitero says it takes less than 2 minutes.
Will an HEI cover the buyout? An example
Say your home is worth $600,000 and you owe $300,000 on the traditional mortgage. That’s $300,000 in equity, and your spouse’s half is $150,000.
Splitero invests up to 25% of your home’s value, and the investment plus your traditional mortgage can’t top 75% of the home’s value. On this house, both limits land at $150,000.
| Item | Amount |
|---|---|
| Your spouse’s share of the equity | $150,000 |
| Most Splitero could invest here | $150,000 |
| Splitero’s 4.99% origination fee | $7,485 |
| Other closing costs, about | $1,000 |
| Cash you’d actually receive | $141,515 |
| Shortfall to cover another way | $8,485 |
Example only. Your offer depends on the appraisal, your credit and your liens. Splitero puts third-party closing costs at about $1,000, and they vary by property.
So even at the max, you’re about $8,500 short. You’d need savings, another asset in the settlement, or a smaller buyout figure to close the gap.
Owe more on the traditional mortgage than this? Then the 75% limit shrinks what’s available fast, and an HEI may not get you close.
What it could cost you later
This is the part to think hard about.
When you were married, the home’s growth was split two ways. Now the company earns its share of that growth, and you carry the whole settlement alone.
For a sense of scale, take Hometap’s published pricing: 1.65 times the percentage of home value you receive if you settle in years 0 to 5, and 1.8 times in years 6 to 10. Receive 25% of a $600,000 home and those come to 41.25% and 45% of the home’s value at settlement.
| Settle after | Home value at 3.25% a year | Share | What you’d settle for |
|---|---|---|---|
| 5 years | $704,047 | 41.25% | $290,419 |
| 10 years | $826,137 | 45% | $371,761 |
Our math using Hometap’s published multipliers on a 25% investment. In both rows the percentage amount is below the Hometap Cap. Splitero prices its Split Percentage per offer, so its figure could be different.
That’s a lot of your future equity for $150,000 today. It could still be the right call if it’s the only way to keep the house, but go in with your eyes open.
If the cost worries you, read the pros and cons of a home equity investment before you decide.
HEI vs cash-out refinance and other options
| Option | Monthly payment | Qualify on one income? | Keeps the house | Main tradeoff |
|---|---|---|---|---|
| Home equity investment | None | No income documents at Splitero | Yes | A share of your home’s future value |
| Cash-out refinance | Yes, a new, larger traditional mortgage | You need the income to qualify | Yes | Resets your rate and term |
| HELOC or home equity loan | Yes | You need the income to qualify | Yes | A second payment on top of your traditional mortgage |
| Offset with other assets | None | Not needed | Yes | You give up retirement or savings in the split |
| Sell the home | None | Not needed | No | You both walk away with cash |
If you can afford a payment and qualify alone, a cash-out refinance or a HELOC will often cost less over time. If you can’t, the HEI is the one that doesn’t need your paycheck. You can also look at other ways to get equity out without refinancing.
Does your spouse have to sign?
Most likely, yes.
Splitero says that in many states, a spouse has a legal interest in the primary residence because of homestead or marital property laws, even if they aren’t on title. Until the divorce is final and property interests are legally severed, your spouse will likely need to sign certain documents acknowledging the deal.
Unlock lays it out the same way. Everyone on title signs at origination, and a spouse who isn’t on title may still need to sign some documents.
So the buyout takes cooperation, or at least a court order your attorney can work with. Plan the timing around when the decree and property settlement are recorded.
Step by step
- Agree on the home’s value and your spouse’s share, in writing, with your attorney.
- Check which HEI companies serve your state and confirm you have enough equity left after the buyout.
- Get estimates and compare the cash you’d receive after fees with the buyout figure.
- Line up the shortfall, if there is one, from savings or another asset.
- Send the company your separation agreement or divorce decree if it asks, and have your spouse sign what’s required.
- Close, pay your spouse, and record the title change.
- Write down your settlement plan, since you’ll need to settle by the end of the term.
Already have an HEI and getting divorced?
Tell the company early. Hometap says it works with its title partner to modify the investment to include or remove your ex-spouse, and some homeowners choose to settle instead.
Unlock asks you to notify it if title changes during the term. Point says adding or removing an owner may need its prior written consent. Either way, don’t change the deed until the HEI company has signed off.
Taxes on a divorce buyout
IRS Publication 504 says no gain or loss is recognized on a transfer of property to a spouse, or to a former spouse if the transfer is incident to the divorce. That holds even if the transfer is in exchange for cash or the release of marital rights.
The HEI cash itself is a separate question. See are home equity investment proceeds taxable for what the companies and the IRS say, and run your settlement by a tax pro before you sign.
Who an HEI divorce buyout fits
It could fit you if:
- You want to keep the house and can’t qualify for a refinance on your own income
- You’ll still have more than 25% to 30% equity after the buyout
- You plan to stay long enough to make the cost worth it, but not past the term
- You can cover any shortfall after fees
It’s probably not the right move if:
- You can qualify for a cash-out refinance with a payment you can afford
- Your spouse’s share is far bigger than what an HEI would invest
- You’re likely to sell in the next couple of years anyway
Bottom line
An HEI could be the piece that lets you keep the house after a divorce, especially when one income won’t get you through a refinance. Splitero and Unlock both say they’ll do it.
Bottom line: settle the buyout number first, check whether the cash after fees covers it, and make sure you can live with the settlement cost later.
An HEI buyout could make sense if you’ll keep at least 25% to 30% equity in your home afterward, it’s located in an eligible state, and you know how you’ll settle when the time comes.
HEI divorce buyout questions, answered
Yes, with some companies. Splitero says its HEI could be used to buy out a spouse’s equity in certain scenarios, and Unlock calls its agreement a practical way to do it. You can get a Splitero estimate to see how much you might qualify for.
Likely, yes. Until the divorce is final and property interests are legally resolved, your spouse generally keeps rights to the home, so they’ll probably need to sign certain documents even if they aren’t on title.
Not always. Splitero invests up to 25% of your home’s value, and your investment plus your traditional mortgage can’t top 75% of the value. After a 4.99% fee and closing costs, you could come up short on a large equity split.
It’s easier to qualify for on one income and adds no monthly payment. A cash-out refinance often costs less over time if you can qualify and afford the payment, so price both.
IRS Publication 504 says no gain or loss is recognized on a transfer of property to a spouse, or to a former spouse if it’s incident to the divorce. The companies that address it say HEI cash generally isn’t taxable income, but check your own situation with a tax pro.
Contact the company before changing title. Hometap works with its title partner to add or remove an ex-spouse, Unlock asks to be notified of title changes, and Point may require its written consent.
How we put this together
This guide is Banks Done Right’s editorial view. The divorce rules come from Splitero’s and Unlock’s own FAQs, Hometap’s life events post and Point’s help center. Splitero’s limits and fees come from its FAQs and pricing page, and the tax rule from IRS Publication 504.
Both dollar examples use a home value and traditional mortgage balance we picked. The later cost table applies Hometap’s published multipliers to a 25% investment, which is our math, not a Hometap quote.
| What we looked at | Where it came from |
|---|---|
| Whether buyouts are allowed | Each company’s divorce and title FAQs |
| How much you could get | Splitero’s 25% and 75% limits, fee and closing costs |
| What it could cost later | Hometap’s published multipliers and cap |
| Taxes | IRS rules on transfers between spouses |
Sources
- Splitero: FAQs on divorce, spouses, funding limits and fees, and its Pricing page (splitero.com)
- Unlock: FAQs, “What happens to my Unlock Agreement if I get divorced or separated?” (unlock.com)
- Hometap: FAQs, the pricing guide and “Your Home Equity Investment Through Life Events” (hometap.com)
- Point: Help Center, “Can I add or remove an owner or transfer to another person or a trust?” (help.point.com)
- IRS Publication 504 (2025), Divorced or Separated Individuals
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Terms, pricing and availability change. Check the current terms on each company’s site, and confirm the buyout plan with your divorce attorney.