How to sell your house when divorcing in Tomakomai | If a loan remains, division of property, taxes, and when to sell
Once a divorce is decided, many people get stuck on the question “What do we do with this house?” Should we sell it, or should one of us keep living there? What happens if there is still a mortgage? This article explains, from the standpoint of a real estate company, the order in which to make decisions when selling a house in Tomakomai because of divorce, how to think about a remaining loan, and points to note about division of property and taxes. Legal judgments belong to lawyers and tax matters to tax accountants, so we also make clear where that line is.
Three things to check first
- Name on the title: check the land register to see whose name the house is in (one person alone, or co-owned by the couple). A co-owned house cannot be sold without the consent and signatures of both.
- Remaining loan balance and expected sale price: your options change depending on whether the sale price can pay off the loan in full (under-loan) or not (over-loan).
- Who will keep living there, or wants to: if neither of you will live there, you sell. If one of you will live there, you need to sort out the title and the loan.
The appraisal can go ahead at the same time as the divorce discussions. If you know the likely sale price first, the discussion about division of property becomes more concrete.
When to sell: before or after the divorce
| Sell before the divorce | Sell after the divorce | One of you keeps living there | |
|---|---|---|---|
| Procedures | The two of you can cooperate on the contract and handover | You will still need to contact each other and exchange signatures | You need to sort out the title and the loan |
| Sorting out the money | You can pay off the loan with the sale price and divide the rest | You need to decide how to divide it at the time of the divorce | The person who stays may pay compensation to the other |
| Points to note | If discussions drag on, you may miss the right time to sell | For a co-owned house, everyone’s consent is needed | If the person named on the loan moves out, the lender’s approval is needed |
After a divorce, it often becomes hard to contact each other, and in many cases the sale stalls. If the house is co-owned, it is easier to proceed if you decide on the selling plan and the lowest acceptable price before the divorce.
The pitfall when one person keeps living there
A mortgage is generally a contract that assumes the borrower named on the loan lives in the house. If the borrower moves out and someone else keeps living there, this may breach the contract with the lender. Before you agree that one person will keep living there without changing the title or the loan, always check with the lender.
If a loan remains
| Situation | How to think about it |
|---|---|
| Sale price > loan balance | Pay off the loan with the sale price, cancel the mortgage registration, and hand over the house. Divide the remaining money as division of property. |
| Sale price < loan balance | Cover the shortfall with cash or talk to the lender. Selling without being able to pay off the loan in full is called a “voluntary sale” (nin’i baikyaku) and requires the lender’s consent. |
| You are joint debtors or a joint guarantor | Even after a divorce, the repayment obligation under the loan contract remains. Selling the house and paying off the loan is the sure way to settle this responsibility. |
First, get a “loan balance certificate” from your lender and check the current balance.
Basics of division of property
Under Civil Code Article 768, a divorced person can claim division of property (zaisan bun’yo) from the other. If you cannot agree through discussion, you can file a petition with the family court. The deadline for filing was extended from 2 years to 5 years after the divorce by the amendment to the Civil Code that took effect in April 2026 (if you divorced before it took effect, the previous 2 years applies). Unless it is clear that the two people contributed differently to building the property during the marriage, the family court treats their contributions as equal. In practice, “one-half” is the basic rule.
- Property owned before the marriage and property inherited from parents are in principle not included in the division.
- Each person’s share may change depending on the circumstances, for example if parents helped with the down payment when the house was bought.
- Recording how you divide things in writing (a divorce agreement or a notarized deed) helps prevent disputes later.
The ratio of division and what to do if the other person does not agree to sell are legal issues. Please consult a lawyer or the Japan Legal Support Center (Hō Terasu). We help with the real estate side, such as the appraisal value and the selling procedure.
Taxes on the sale
If you sell the house and divide the cash
When you sell a house you lived in, there is a special measure that lets you deduct up to ¥30 million from the capital gain. Even if you no longer live in the house, it applies if you sell by 31 December of the year that includes the day 3 years after you stopped living there (National Tax Agency). If husband and wife each hold a co-ownership share, each of them can use it.
If you give the house itself as division of property
If you divide property by giving land or a building, the person who gives it may be taxed on the capital gain. The market value at the time of division becomes the income amount (National Tax Agency). The person who receives it is normally not subject to gift tax. Exceptions include cases where the amount divided is excessive. Check the exact amounts with a tax accountant.
Preparing for the sale and required documents
- Registration identification information (title deed, kenrishō), the property tax statement, and the loan balance certificate
- Identity documents. If the address or name on the land register differs from your current one, you need to register the change before the sale. If it has changed because of marriage or a move, check early.
- For a co-owned house, documents for both people, plus both signatures and seals
The selling process, the difference between brokerage and direct purchase, and fees are explained in “Selling real estate in Tomakomai“. In the 2026 official land price publication, residential land in Tomakomai rose by an average of +4.15%, so if you have time, you can sell at the market price through brokerage. However, if the timing is fixed because of the divorce, you can also switch to a direct purchase.
What we can do
Banana House Inc. (1-1-1 Honkocho, Tomakomai) handles appraisal, brokerage and direct purchase of homes in connection with divorce. We also accept requests such as “I want to check the appraisal first without the other person knowing” or “I want an estimate of the sale price that takes the remaining loan into account”. To apply, just give us three things: the type of property, its location and your contact details.
This page was machine-translated. The Japanese original prevails.
Frequently asked questions
Can we sell the house before the divorce is finalized?
Yes. However, if the house is co-owned, the consent and signatures of both are needed, and both of you must cooperate on the sales contract and handover. Even if it is in one person's name, the house is subject to division of property, so selling it without agreement will cause trouble. Proceed after you have agreed on the details.
Can we sell if there is still a mortgage?
Yes. Usually, you pay off the loan with the sale price, cancel the mortgage registration and hand over the house. If the sale price does not reach the loan balance, you cover the shortfall with cash or discuss a voluntary sale with the lender. First check the current balance with a loan balance certificate.
My spouse will not agree to sell.
A co-owned house cannot be sold without the other person's consent. If you cannot agree through discussion, you need family court mediation or a lawyer's advice. We cannot make legal judgments, but we can prepare appraisal documents for use in mediation and similar proceedings.
Until when can I claim division of property?
The deadline for filing with the family court became 5 years after the divorce under the amendment to the Civil Code that took effect in April 2026. If you divorced before it took effect, the previous 2 years applies. After the deadline, a claim becomes difficult, so consult a lawyer early.
Is there tax when we sell the house because of divorce?
If you sell a house you lived in, there is a special deduction of ¥30 million, and in many cases no tax is due. If you give the house itself as division of property, the person who gives it may be taxed on the capital gain. Check the amounts with a tax accountant.
Consultations on selling and vacant houses are free
We can start a valuation with just three things: the property type, its location and your contact details. You do not need to have decided to sell yet.
Banana House Inc., 1-1-1 Honkocho, Tomakomai. We never use pushy sales. Please write in English or Japanese.
Sources and data
- Data retrieved: 2026-10-10. All prices are official public data and do not include our own estimates.
Yuki Nakazawa (President, Banana House Inc.) reviewed the Japanese original of this article. As a licensed real estate broker, we follow the Japanese rules for real estate advertising.
