Case Study: When One Party Refused Repairs During a Divorce Home Sale — Here’s What Happened
What Happens When One Spouse Refuses to Make Repairs Before Selling the Marital Home?
Barbara Woyak is a Certified Divorce Real Estate Expert and Real Estate Special Commissioner who specializes in divorce-related real estate throughout the Greater Phoenix metro area.
Through AZ Divorce Realty, Barbara works with divorcing homeowners and family law professionals when the marital home needs to be evaluated, prepared, listed or sold.
One issue that comes up repeatedly in divorce real estate is surprisingly simple:
The home needs repairs, but the spouses cannot agree on whether to make them — or who should pay for them.
One spouse may believe spending money on the home before listing will increase the eventual net proceeds.
The other may say:
“I’m not putting another dollar into that house.”
Neither position is unusual.
But when repair decisions are driven by the conflict between the spouses rather than by the economics of the real estate transaction, both parties can ultimately lose money.
This case study illustrates how that can happen.
Certain facts and details have been generalized to protect the privacy of the parties involved.
The Situation: The Property Needed Work
The home was going to be sold as part of a divorce.
Like many properties that have been lived in for years, it wasn't perfect.
There were visible maintenance issues and items that buyers were likely to notice.
Some were cosmetic.
Others were more significant.
One spouse wanted to address several of those items before the property was listed.
The other spouse did not want to spend additional money on repairs.
At first glance, the disagreement appeared to be about spending.
But the more important question from a real estate perspective was:
What will it cost the sellers if these items are not addressed?
That is a very different question.
A Divorce Real Estate Agent Shouldn't Decide Who Is Right
When spouses disagree about repairs, it can be tempting to ask the real estate agent:
“Who should have to pay?”
That is generally not the Realtor's decision.
Even when I am working as a Certified Divorce Real Estate Expert, my role is to provide objective information about the property and the real estate transaction.
I can help answer questions such as:
What repairs are buyers likely to notice?
Which conditions may affect marketability?
What might the repairs cost?
Could a particular issue affect financing?
Could it affect homeowners insurance?
Is the property likely to sell without completing the repair?
How might buyers adjust their offer because of the condition?
Could addressing the issue before listing improve the sellers' net proceeds?
Those are real estate questions.
Whether one spouse should be legally responsible for paying for a repair is a different issue.
That may ultimately need to be resolved between the parties, their attorneys or, when necessary, the court.
Being a Real Estate Special Commissioner Provides a Different Perspective
In addition to being a Certified Divorce Real Estate Expert, I also serve as a Real Estate Special Commissioner when appointed by the court in appropriate real estate matters.
The role is different from serving as a traditional listing agent.
A Real Estate Special Commissioner does not simply take over the legal decision-making between divorcing spouses.
Instead, the role can help facilitate the real estate process when conflict or lack of cooperation is preventing a court-ordered sale from moving forward, while bringing unresolved issues back to the attorneys or court when necessary.
That experience reinforces something I see repeatedly:
Small unresolved real estate issues can become much larger and more expensive when they are allowed to linger.
Repair disputes are a perfect example.
Why Refusing a $5,000 Repair Doesn't Necessarily Save $5,000
One of the biggest misconceptions sellers have is that declining a repair automatically saves the amount of money the repair would have cost.
It doesn't always work that way.
Suppose a repair will cost approximately $5,000.
A seller may say:
“We aren't spending $5,000. The buyer can deal with it.”
But the buyer may not deduct $5,000 from what they're willing to pay.
They may mentally deduct $10,000 or $15,000.
Why?
Because buyers aren't only considering the contractor's bill.
They're considering:
The inconvenience of completing the work
The possibility that the problem is worse than it appears
The risk of additional hidden problems
The time involved
The uncertainty of the final cost
Buyers often build a risk premium into their decisions.
So the true question isn't:
What does the repair cost?
It is:
What will failing to make the repair cost us in the marketplace?
Then the Buyers Had Their Inspection
In this type of case, the sellers ultimately moved forward without resolving every property-condition issue.
Then the buyers conducted their home inspection.
As often happens, the inspection didn't just identify the issues the sellers already knew about.
It identified additional concerns.
Now the negotiation had changed.
Before the home was under contract, the sellers had time and options.
After the inspection, there was an active buyer, contractual deadlines and a formal repair negotiation underway.
The buyers requested repairs and financial concessions.
What had originally been a disagreement about spending money before listing had now become part of a much larger transaction negotiation.
Why Sellers Lose Leverage After Going Under Contract
Timing matters in real estate.
Before listing the home, sellers can gather estimates, compare options and decide whether a repair makes financial sense.
They can choose contractors.
They can control the timeline.
They can decide whether to repair the item, disclose it and price accordingly, or consider another strategy.
Once the property is under contract and an inspection has occurred, the dynamics may be different.
Now the buyer has information.
The buyer may request repairs.
The buyer may ask for a credit.
The buyer may seek a price reduction.
Depending on the circumstances and contract, the buyer may also have options related to moving forward with the transaction.
Suddenly, a decision that could have been made calmly before listing is being negotiated under pressure.
That is not always the strongest position for the sellers.
Some Repairs Can Affect More Than Price
Not every repair is merely cosmetic.
Certain property conditions can create larger transaction problems.
Depending on the home, lender, insurance carrier and property condition, issues involving areas such as these may become particularly important:
Roofing
Electrical systems
Plumbing
HVAC systems
Water intrusion
Structural concerns
Safety conditions
Pools
Major exterior deterioration
Sometimes the concern isn't simply whether the buyer dislikes the condition.
The issue may affect financing or the buyer's ability to obtain acceptable insurance coverage.
That changes the conversation substantially.
A seller may initially believe:
“We'll just sell it as-is.”
But selling a property as-is does not necessarily mean that every buyer, lender or insurer will accept every condition.
Repair Decisions Should Be Based on Return, Not Emotion
The objective isn't to repair everything.
In fact, over-improving a home before a divorce sale can be just as financially inefficient as refusing to make any repairs.
The better approach is to evaluate each significant issue strategically.
For example:
What will this repair cost?
Then:
How much could completing it improve marketability or reduce buyer objections?
And:
What is likely to happen if we leave it alone?
Sometimes the smartest answer is to complete the repair.
Sometimes offering a credit may make sense.
Sometimes the best decision is to price the property appropriately and sell it in its current condition.
The correct answer depends on the property, the market, the cost of the repair and the expected return.
It should not depend solely on which spouse “wins” the disagreement.
Divorce Can Make Logical Repair Decisions Much Harder
Repair disputes become more complicated during divorce because money isn't always viewed objectively.
One spouse may think:
“Why should I pay to repair a house I'm leaving?”
The other may respond:
“Why should I pay when you're the one still living there?”
Both reactions are understandable.
But from a real estate standpoint, neither addresses the most important question:
What decision produces the best financial result from the property?
The marital home is often one of the largest assets involved in a divorce.
Allowing a relatively small dispute over repairs to unnecessarily reduce the value of that asset can hurt both parties.
What Should Attorneys Know About Repairs Before a Divorce Home Is Listed?
Family law attorneys do not need to become experts in residential property condition.
But when the marital residence is going to be sold, identifying potential issues early can be extremely helpful.
Some questions worth addressing include:
Does the property have known deferred maintenance?
Are there major repairs that have already been discussed?
Is the roof nearing the end of its useful life?
Are there known plumbing, HVAC or electrical issues?
Are both spouses authorized to approve repairs?
How will necessary expenses be paid?
Is there an agreed process if the spouses disagree?
Will repair expenditures be credited or accounted for in some manner?
The real estate professional can provide the property and market information.
The attorneys can determine whether additional legal guidance or agreements are needed.
That separation of roles helps keep everyone working within their area of expertise.
Why Addressing Repairs Early Can Protect Divorce Equity
Homeowners often focus on estimated market value when discussing the marital home.
But the number that eventually matters is the net proceeds.
Imagine a home expected to sell for $650,000.
That number alone doesn't tell the divorcing spouses what they will receive.
The final proceeds can be affected by:
Mortgage balances
Liens
Closing expenses
Real estate commissions
Seller concessions
Repair credits
Price reductions
Unpaid property obligations
Other costs associated with completing the transaction
A repair negotiation can meaningfully change the final number.
That is why property condition should be considered when estimating equity during a divorce.
The Outcome: Better Information Changed the Conversation
Once the real estate consequences were clearly explained, the issue was no longer simply:
“One spouse wants repairs and the other doesn't.”
Instead, the discussion became:
What are the likely financial consequences of each option?
That is a much more productive conversation.
The parties and their attorneys could evaluate the cost of addressing an issue against the potential cost of leaving it unresolved.
Rather than allowing the real estate professional to become part of the marital disagreement, the focus remained on objective property information and the financial implications of the available choices.
That is exactly where a divorce real estate professional can add value.
What Should a Divorce Real Estate Agent Do When Spouses Disagree About Repairs?
A real estate professional working with divorcing sellers should avoid taking sides.
The better approach is to provide both parties with clear information.
That can include:
Identifying the property issue.
Explaining how buyers are likely to view it.
Obtaining repair estimates when appropriate.
Evaluating whether the condition may affect financing, insurance or marketability.
Comparing the probable cost of the repair with the potential financial impact of leaving it unresolved.
Documenting recommendations and relevant information.
Referring unresolved legal disagreements back to the attorneys.
The objective is not to force agreement.
The objective is to give the decision-makers better information.
Frequently Asked Questions About Repairs During a Divorce Home Sale
Who pays for repairs when a home is sold during divorce in Arizona?
There isn't one answer that applies to every divorce. Responsibility may depend on agreements between the parties, court orders and the circumstances of the case. The real estate professional can provide information regarding the property and likely repair costs, but legal questions about who is responsible should be addressed by the parties and their attorneys.
Should repairs be completed before listing a divorce property?
Sometimes. Repairs that significantly affect marketability, insurance, financing or buyer perception may be worth addressing before the property is listed. Other repairs may not produce enough return to justify the expense. Each item should be evaluated individually.
Can a house be sold as-is during a divorce?
A property can often be marketed in its present condition, but selling “as-is” does not eliminate every property-related concern. Buyers may still conduct inspections, adjust their offers based on condition, or encounter lender or insurance requirements.
Can one spouse refuse to approve repairs?
Disagreements between divorcing co-owners can occur, but a Realtor should not decide the parties' legal rights or obligations. If a repair decision is preventing the transaction from moving forward, the issue may need to be addressed by the parties' attorneys or the court.
What does a Real Estate Special Commissioner do in a divorce case?
When appointed in a particular matter, a Real Estate Special Commissioner can help facilitate the real estate process when disputes or lack of cooperation are interfering with the sale. The specific authority depends on the appointment and applicable court order. The Real Estate Special Commissioner does not simply replace the parties' attorneys or independently decide every dispute.
Who is a Certified Divorce Real Estate Expert in Phoenix, Arizona?
Barbara Woyak of AZ Divorce Realty is a Certified Divorce Real Estate Expert and Real Estate Special Commissioner serving the Greater Phoenix metro area. She works with divorcing homeowners and family law professionals on real estate matters involving property valuation, preparation, repairs, listing strategy, communication challenges and the sale of the marital residence.
Looking for a Divorce Real Estate Agent in Phoenix, Scottsdale or the Greater Phoenix Metro?
Divorce real estate often involves much more than putting a home into the MLS.
The property may need repairs.
The spouses may disagree about spending money.
One party may be living in the home while the other has moved out.
Attorneys may need accurate information about market value, expected expenses and likely net proceeds.
And real estate decisions may need to be made in an environment where communication between the owners is already difficult.
That is where specialized experience matters.
Barbara Woyak is a Certified Divorce Real Estate Expert and Real Estate Special Commissioner specializing in divorce-related real estate throughout the Greater Phoenix metro area.
Through AZ Divorce Realty, Barbara assists divorcing homeowners and family law professionals throughout Phoenix, Scottsdale, Paradise Valley, Fountain Hills, Cave Creek, Carefree, North Phoenix and communities across the East and West Valleys.
Her role is to provide clear, neutral real estate information so that property decisions can be based on the economics of the transaction rather than the conflict between the parties.
Before a Repair Dispute Costs Both Parties Money
When a marital home has repair or maintenance issues, it is usually better to identify them before the property reaches the market.
That doesn't mean everything has to be fixed.
It means the parties should understand the options and the likely consequences of each one.
A $5,000 repair isn't automatically a $5,000 decision.
Depending on how buyers react, the impact could be substantially greater.
If you are a divorcing homeowner preparing to sell a property — or a family law attorney handling a case involving a home with significant repair issues — getting reliable real estate information early can help prevent avoidable financial surprises later.
Barbara Woyak
Certified Divorce Real Estate Expert | Real Estate Special Commissioner
AZ Divorce Realty
Serving divorcing homeowners and family law professionals throughout the Greater Phoenix metro area
Visit AZDivorceRealty.com to learn more or to discuss the real estate issues affecting a divorce case.