Property division is often one of the most emotional and financially significant parts of a divorce. If you own a home, you may wonder what happens to it. Can you keep it? Does it have to be sold?
Even if you and your spouse informally agreed on how to split property when you separated, a judge still needs to make a formal order about these issues. Also, keep in mind that until you have a court order, you still own marital properties and debts, no matter who is using them.
Understanding Community Property
California is a community property state, which means that most assets acquired during the marriage are considered jointly owned by both spouses. If the home was purchased during the marriage using marital funds, it is usually considered community property. In many cases, that means each spouse has a 50% interest in the property, regardless of whose name appears on the title or mortgage.
When a Home is Separate Property
Not every home must be divided. A house may be considered separate property if:
- One spouse owned the home before the marriage.
- The home was inherited by one spouse.
- The home was received as a gift specifically to one spouse.
However, things can become complicated if marital funds were used to pay the mortgage or improve the home. In those cases, both spouses may still have a financial interest in the property.
Options for Dividing the House
When a couple divorces, there are several common ways the house may be handled:
- One spouse buys out the other. One spouse may choose to keep the home and pay the other spouse their share of the equity. This often requires refinancing the mortgage into a single name.
- Selling the home and dividing the proceeds. If neither spouse can afford to keep the property alone, the court may order the home to be sold. The profits from the sale are typically divided equally.
- Deferred sale. When there are children involved, the court may allow the parent with primary custody to remain in the home temporarily. This can help provide stability for children until they reach a certain age, after which the home may be sold.
Contact Us Today
In a divorce, it is important to understand your legal rights when it comes to marital property. California operates under community property laws, so homes and other assets obtained during a marriage are typically split 50/50.
Need help with property division during your divorce? A Redwood City divorce lawyer from The Law Offices of Oliver Gutierrez can help you understand the laws regarding property division. Want to keep your marital home? We can help you understand your legal options. Se habla español. Fill out the online form or call (650) 285-1673 to schedule a consultation today.