Be Aware!! One of the Biggest Pitfalls when it Comes to Divorce

Divorcing couples must carefully review real estate terms like First Right of Refusal to avoid costly mistakes.

Divorce is already an emotionally charged process. But when a home is involved—often the couple’s largest shared asset—the decisions get even more complicated. One common legal clause that sounds fair in theory but can be harmful in practice is the First Right of Refusal.

If you’re going through a divorce or helping someone who is, understanding the risks of this clause can protect your financial and emotional well-being.

What Is First Right of Refusal in Divorce?

In real estate, a First Right of Refusal (FROR) gives one spouse (often the one still living in the home) the opportunity to match an outside offer and purchase the property themselves—at the agreed market value.

On paper, this sounds like a win-win:

• The home is fairly priced by the market.

• One spouse gets a chance to keep the property.

  
  

But in real life? It can open the door to manipulation.

How FROR Can Be Abused During Divorce

In-spouse sabotage during divorce home sales can include poor presentation to reduce the home’s market value.

While First Right of Refusal seems reasonable, it creates an opportunity for the “in-spouse” (the one still occupying the home) to intentionally sabotage the selling process in order to buy the home at a lower price.

Here’s how:

1. Poor Property Presentation

Buyers are emotional. If the in-spouse lets the home get dirty, cluttered, or unwelcoming, it can reduce the appeal—leading to lower offers.

2. Negative or Incomplete Disclosures

If the in-spouse controls the narrative about the home’s condition, they might exaggerate flaws or underreport improvements, discouraging potential buyers.

3. Weak Listing Descriptions

They may pressure the agent to use vague or negative language in the listing—or withhold desirable features—to reduce buyer interest and market value.

All of this results in lower perceived value, giving the in-spouse the chance to buy the property for less than it’s truly worth.

Legal agreements around property sales in divorce must include protection from misuse of First Right of Refusal clauses.

How to Protect Yourself

If First Right of Refusal is on the table, consider these safeguards:

• Hire a neutral, experienced real estate professional who understands divorce sales.

• Set clear terms in the divorce agreement: condition of the home, marketing strategy, timelines, and how offers will be handled.

• Document everything—photos, showings, communication, and disclosures.

• Request a third-party appraisal early on to establish fair value.

Final Thoughts

Dividing real estate during a divorce is never easy—but clauses like First Right of Refusal require special care. While it may seem fair on the surface, it can be used strategically in ways that hurt one party financially.

Working with a team that understands both real estate and divorce dynamics can make a huge difference. If you’re navigating a divorce and facing tough decisions about your home, we’re here to help. Contact us for a consultation.

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🎥 Watch the quick explainer video here: https://youtube.com/shorts/JNNXP__mWxo

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