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Divorce and your mortgage in Florida

Divorce and Your Mortgage in Florida The equitable-distribution buyout, the tax cap you can keep, the homestead signature, and the insurance reality

In a Florida divorce, the spouse keeping the home buys out the other's equity by refinancing. Florida divides property equitably, not automatically in half. Two Florida points matter most: the Save Our Homes tax cap can be kept if you keep the home, and both spouses must sign to refinance a homestead. This is financing information, not legal, tax, or insurance advice.

By Niko Kramer, Mortgage Loan Officer, Satori Mortgage, NMLS #2180891 Certified Divorce Lending Professional (CDLP)

Last updated: June 17, 2026

Talk to Niko Call (512) 270-2835

This is the Florida view of the divorce-and-mortgage picture. For the national mechanics, start with the Divorce and Your Mortgage pillar, and see my Florida mortgage guide.

Niko Kramer, Mortgage Loan Officer, NMLS #2180891, Certified Divorce Lending Professional
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How does a divorce home buyout work in Florida?

Florida divides marital property equitably, fairly rather than automatically in half. To keep the home, one spouse usually buys out the other's awarded share of the equity by refinancing into a new loan that pays off the old mortgage and funds the buyout. The split follows your settlement or the court, which your divorce attorney handles, not the lender.

More: How a divorce equity buyout is financed.

Will buying out my spouse raise my property taxes in Florida?

Not if you keep the home as your homestead. A title transfer between spouses following a divorce is excepted from reassessment under Florida Statutes 193.155(3), so the Save Our Homes cap stays in effect and the spouse who keeps the home and continues to occupy it keeps the low capped assessment. Your specific situation is the county property appraiser's determination, so confirm it there.

The Save Our Homes cap in a divorce, in brief

  • Florida's Save Our Homes amendment caps the annual increase in a homestead's assessed value at the lower of 3% or the change in the Consumer Price Index. A change of ownership normally resets the assessment to just (market) value the following January 1.
  • A transfer of title between spouses following a divorce is one of the situations excepted from reassessment under Florida Statutes 193.155(3). So the Save Our Homes cap remains in effect, and the spouse who keeps the marital home and continues to occupy it as a permanent residence keeps the low capped assessment rather than seeing it reset to market value.
  • If both spouses give up ownership of the home they co-owned, they can divide the accumulated Save Our Homes assessment differential between them, and each can port their part to a new homestead, subject to the portability rules and the statewide transfer limit. By default the cap stays with the marital home, so the departing spouse can lose the benefit if the settlement does not address it.

Informational only, not tax advice. Sources: Florida Statutes 193.155; Florida Department of Revenue, Save Our Homes; Florida Department of Revenue, Save Our Homes assessment differential and portability; Florida Statutes 193.155. Your specific situation is the county property appraiser's determination.

What happens to the Save Our Homes cap if I move out?

Address it in the settlement. By default the cap stays with the marital home, so the departing spouse can lose the benefit. When both spouses give up the co-owned home, they can divide the accumulated Save Our Homes differential and each port their part to a new homestead, subject to the portability rules and the statewide transfer limit. The county property appraiser confirms the specifics.

Do both of us have to sign to refinance the house in Florida?

For a homestead, yes. Under Article X, Section 4(c) of the Florida Constitution, a homestead cannot be mortgaged without the joinder of the owner's spouse, even if only one spouse is on the title. The departing spouse signs the security instrument, consenting to the lien, not the promissory note, so they are not personally liable on the new loan. This ties the refinance to the timing of the divorce.

More: When to refinance: before or after the decree.

The homestead signature, framed correctly

Under Article X, Section 4(c) of the Florida Constitution, homestead property cannot be mortgaged or conveyed without the joinder of the owner's spouse, even if only one spouse is on the title. In a buyout refinance, the non-borrowing spouse signs the security instrument (the mortgage), consenting to the lien, not the promissory note, and is not personally liable on the debt.

Source: Florida Constitution Article X, Section 4(c) (homestead alienation; spousal joinder). This is a homestead-consent signature on the security instrument, not a co-borrower or guarantor obligation, and the legal specifics are for your divorce attorney.

How does Florida's insurance market affect getting a mortgage?

A lot. Florida homeowners insurance is among the highest in the nation and is a heavy part of the monthly payment, so it weighs directly on qualifying. The market has been stabilizing in 2026 but remains structurally elevated, especially in coastal and high-wind counties. Roof age, construction year, wind-mitigation features, flood risk, and condo assessments all drive the premium. I treat insurance as a budgeting and qualifying factor; quotes and coverage are for a licensed insurance agent.

More: Qualifying on one income after divorce.

How do I qualify on one income in Florida?

You generally have to qualify for the new loan alone, on your own income, credit, and debt-to-income. Florida's payment is heavy: the Save Our Homes cap helps hold property taxes down, but insurance is the wild card. A non-occupant co-borrower can help you qualify when your own numbers are tight. It is worth running your real numbers, with a realistic insurance estimate, before the decree commits to a plan.

More: Qualifying on one income after divorce.

Should I keep the house or sell it in Florida?

That is your decision, with your attorney and a tax advisor. The financing side is whether you can afford and qualify for the home and the buyout on one income, including a realistic insurance cost. Keeping can preserve the low Save Our Homes assessment, but weigh that against the full payment on one income. I will lay out the financing honestly and will not push you either way.

More: Should you keep the house or sell it?.

Does Florida have an owelty like Texas?

No. The owelty lien is a Texas homestead mechanism. Florida handles a divorce buyout through equitable distribution and a refinance, with the homestead spousal-joinder signature where it applies. So the Texas owelty guidance does not apply here; in Florida the buyout is financed as an ordinary refinance sized to the existing balance plus the awarded share.

More: The Texas owelty lien (a Texas-only contrast).

Frequently asked questions

Not if you keep the home as your homestead. A title transfer between spouses following a divorce is excepted from reassessment under Florida Statutes 193.155(3), so the Save Our Homes cap stays in effect and you keep the low capped assessment rather than seeing it reset to market value. Your specific situation is the county property appraiser's determination, so confirm it with the appraiser and a tax advisor.

By default the Save Our Homes cap stays with the marital home, so a departing spouse can lose the benefit if the settlement does not address it. When both spouses give up the co-owned home, they can divide the accumulated assessment differential and each port their share to a new homestead, subject to the portability rules and the statewide transfer limit. This is a planning point for the settlement; confirm the specifics with the county property appraiser.

Yes. Under Article X, Section 4(c) of the Florida Constitution, a homestead cannot be mortgaged or conveyed without the joinder of the owner's spouse, even if only one spouse is on the title. In a buyout refinance, the departing spouse signs the security instrument to consent to the lien, not the promissory note, so they are not personally liable on the new loan. This is a homestead-consent signature, not a co-borrower obligation.

Insurance is part of your monthly housing payment, so a high premium raises your debt-to-income and can affect how much you qualify for. Florida premiums are among the highest in the nation, and while the market has been stabilizing in 2026, costs remain elevated, especially in coastal counties. Roof age, flood risk, and condo assessments all matter. Niko is a loan officer, not an insurance agent, so quotes and coverage are for a licensed agent; the premium is built into the qualifying math.

Florida is an equitable-distribution state, so marital assets and liabilities are divided fairly, beginning from a premise of an equal split and adjusting for the statutory factors, rather than automatically 50/50. In practice one spouse often keeps the home and buys out the other's awarded share by refinancing. The characterization and division are decided by the settlement or the court and handled by your divorce attorney, not the lender.

Related guides

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Sorting out a Florida home in a divorce? Let's run your real numbers.

Tell me the rough equity, the buyout, and your income, and I'll run the payment with a realistic Florida insurance estimate and tell you straight whether keeping the home is fundable on your own. No pressure, no credit pull, and no push either way.

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