The party "buying out" the other party's half of the marital home typically incurs all the cost of doing so. Refinance costs, including appraisal, are all at the expense of "buyer". One cannot deduct the presumed cost of real estate fees as those were not paid. Of course, everything is negotiable but this is how it is typically done. Keep in mind about future capitol gains taxes. According to my CPA, the cost basis will NOT be the newly refinanced amount BUT the original cost of the home when first purchased by the couple divorcing. But the party buying out the other will incur 100% of the capitol gains minus the $250,000.00 per person exemption. In my case, it going to be a lot. EX: Original purchase price $182,500.00. Bought out ex for $500,000.00. Now 2 yrs later, house is worth $350,000.00. If I sold it at that, I'd be OK capitol gains tax wise but would lose $150,000.00 +. If I wait till the market turns around and sell it to break even at $500,000.00, I'd have to pay capitol gains tax on $67,500.00 ( 500K - 182.5K = 317.5K - 250K = 67.5K )At 15 %, that's over ten grand. Something buyers need to know about.