Splitting the Home in a California Divorce

Unless an exception applies, a property like a family home that was acquired during the course of the marriage will be subject to division upon the couples’ divorce. As California is a community property state, the same is true of most property that the couple acquired during the course of the marriage: it will, generally, be subject to equal division between the spouses.

However, psychologically at least, many people find their home to be far more than a simple asset or piece of property.

The family home is usually one of the largest purchases that an average person will make in their lifetime. So it is understandable that the thought of “splitting” it – let alone the logistics of splitting it – can feel absolutely overwhelming. This article will provide some clarity on what to expect and addresses some of the most commonly asked questions concerning splitting a home in a California divorce.

What Happens to the Mortgage?

Many people think of something as either being an asset or a type of hindrance, like a debt. Very often, a house is both. Most homes are purchased with a mortgage attached. This means that the house is both an asset and a debt obligation.

Couples have many options for how to handle splitting the home, including:

• Selling the home and splitting any profit or incurring debt
• Maintain a joint mortgage, acting as partners in managing the property as an investment
• One party “buying out” the other spouse’s interest in the property

No divorce is identical, and no one solution will be ideal in every scenario. There are pros and cons to every option. Selling the property and splitting the profit is a relatively clean break, when compared to the option of continuing to manage the property with your ex. However, if one partner is attached to the property while the other is not then one partner buying out the other may be the most viable option. Speaking with your ex and utilizing the skills of an experienced attorney to negotiate on your behalf can be crucial in settling in a way that you are happy with.

“Buying Out” Your Ex

Because buying out your ex allows you to stay in the property and is a clean break from your former partner, it is often the option divorcing couples land on when settling their divorce case. But while making the decision to try and buy out your partner is an important one, it must be made after carefully considering all of the details. 

• Assess your monthly budget – be honest here. Count the daily coffee run. Count the gym membership. Without your ex’s income supporting the mortgage and regular bills such as utilities as well, can you really afford it?
• Consider miscellaneous costs – every home has bills pop up such as maintenance, big-ticket items like replacing appliances or HVAC systems, paying increases in property tax assessments, etc.

Remember that it is likely not only yourself that you will need to convince. A person who chooses to buy out their partner’s interest in the home will likely need to requalify for the mortgage with a mortgage lender. Before being approved for the loan the mortgage lender would require a borrower to provide sufficient evidence that they could afford to pay back the loan.  

Contact the Law Office of Bradley S. Sandler

The experienced divorce attorney at the Law Office of Bradley S. Sandler can advise on every aspect of your divorce case, including complicated property matters. Contact our office today to discuss the unique circumstances of your own case.