CDRE Hawaii Insights for Family Law Professionals | April 2026
In working with divorcing clients through the sale or transfer of the marital home, I have heard a common refrain: “I wish someone had explained that to me sooner.” These aren’t complaints about legal advice — they’re gaps in the real estate side of the conversation that, left unaddressed, cost clients money, time, and peace of mind.
As attorneys, you cannot be expected to be real estate experts. But by partnering with a Certified Divorce Real Estate Expert (CDRE), you can ensure your clients are fully informed before they make decisions that are difficult or impossible to reverse. Here is what clients consistently say they wish they had known.
“I Didn’t Know Keeping the House Could Hurt Me Financially”
Many clients enter negotiations with one goal: keep the house. It represents stability, continuity for the children, and an emotional anchor in an otherwise chaotic time. What they often don’t consider is whether they can actually afford it — not just the mortgage, but the full carrying cost.
Property taxes, homeowner’s insurance, HOA fees, deferred maintenance, and utility costs can add thousands of dollars per month beyond the mortgage payment. Clients who waive other assets to retain the home often find themselves cash-poor and forced to sell within two or three years anyway — sometimes in a worse market and at even greater emotional cost.
Practice Tips:
• Ask before settlement: Can my client realistically qualify to refinance in their name alone?
• Advise them that a buyout doesn’t just require equity — it requires lender qualification on one income.
• Urge them to consider that liquid assets given up to “keep the house” cannot be recovered if the client later has to sell. If the home loses equity, the client suffers a loss.
Request a pre-settlement financial analysis from a CPA or Certified Divorce Financial Analyst before buyout terms are finalized. This can prevent a client from accepting terms that look good on paper but are unsustainable in practice.
“Nobody Explained What Equity Actually Meant After Costs.”
Clients frequently conflate the market value of their home with the money they will receive from selling it. The gap between those two numbers can be startling. A home valued at $600,000 with a $350,000 mortgage does not yield $250,000 to split — not after real estate commissions, closing costs, capital gains considerations, and any liens or home equity lines of credit are addressed. Net proceeds after costs are what matters. A CDRE can prepare a detailed net proceeds estimate before settlement so clients — and their attorneys — are negotiating based on real numbers, not assumptions.
• Real estate commissions typically range from 4–6% of the sale price.
• Closing costs, prorations, and outstanding liens reduce the net figure further.
• Capital gains exemptions may apply — but only under specific conditions (more on that below).
“I Had No Idea There Were Tax Consequences to Waiting”
Under current IRS rules, married couples can exclude up to $500,000 in capital gains from the sale of a primary residence if they have lived in the home for two of the last five years. Once divorced, each individual is limited to the $250,000 exclusion — and only if they meet the residency requirement.
When one spouse moves out and the parties delay selling by a year or more, the departing spouse may lose their eligibility for the full exclusion. This is especially impactful on higher-value homes where gains exceed $250,000.
Key Point for Settlement Discussions:
The timing of a home sale relative to the divorce decree and move-out date can have significant tax consequences. A CDRE working in concert with a CPA can flag these issues before they become costly surprises.
“I Didn’t Know My Ex Could Refuse to Cooperate on the Sale”
Clients are often surprised to learn that even with a court order to sell, the practical reality of co-owning a home with an uncooperative former spouse can be extremely difficult. Decisions about list price, repairs, showings, and acceptance of offers all typically require both parties to agree
— and when they don’t, delays are costly.
A CDRE serving as a neutral third party can bridge this gap. By working with both spouses equally and without advocacy for either side, a CDRE can facilitate the sale process in a way that reduces conflict and keeps the transaction moving forward — even when the relationship between the parties has broken down.
• Listing agreements require both spouses’ signatures.
• Disagreements over repairs or price reductions can stall a listing for months.
• A neutral CDRE can reduce disputes and serve as the professional point of contact for both sides.
“I Didn’t Understand What Would Happen to the Mortgage”
One of the most misunderstood aspects of divorce real estate is what happens to joint mortgage liability after a divorce decree. Clients frequently believe that because a decree assigns the home — and its mortgage — to one spouse, the other spouse is released from responsibility. They are not.
Until the mortgage is refinanced into the retaining spouse’s name alone, or the property is sold, both parties remain legally obligated to the lender. Late payments or default by the retaining spouse will damage the credit of the departing spouse — regardless of what the divorce decree says.
A divorce decree binds the spouses — not the lender. Clients need to understand that quitclaim deeds and divorce orders do not remove a name from a mortgage. Only a refinance or a sale achieves that.
“I Wish I’d Had Someone in My Corner Who Understood Both the Real Estate and the Divorce”
Perhaps the most consistent theme is that clients felt they were navigating two separate worlds
— the legal world of divorce and the practical world of real estate — without a guide who truly understood both.
A Certified Divorce Real Estate Expert holds specialized training in the intersection of these two domains. We understand court orders, settlement language, and the time lines that govern divorce proceedings. We also know how to price a home for the current market, manage a transaction with two principals who may not be communicating, and keep a sale on track through one of the most difficult periods of a family’s life.
Let’s Work Together
I welcome the opportunity to serve as a resource for your clients and your practice. Whether you need a neutral expert to facilitate a contested sale, a net proceeds analysis before mediation, or simply someone who can field your clients’ real estate questions so you can focus on the legal work — I am here.
I am available for consultations, speaking at your firm, or to be listed as a preferred resource in your client materials. Let’s connect.
Judy S. Howard, Esq., R(B) CDRE | (808) 885-5588 | CDREHawaii@gmail.com www.cdrehawaii.net
This newsletter is intended for informational purposes only and does not constitute legal or financial advice. Tax considerations referenced herein should be reviewed with a qualified CPA or tax advisor.
