Californians who are getting a divorce will have many issues to navigate, such as spousal support and child support. Another vital aspect is property division. If the couple owns a home, it may have significant value. One or both spouses might want to retain it. To sift through the complexities in this situation, it is important to know how to resolve it.
For many couples, a buyout can be effective. To buy out the other spouse, there are key points to remember. Many might think about the home value, but the equity is even more critical. Whatever remains from the equity will be split in half, and the spouse wanting to buy out the other will need to pay that. To know what the home’s value is, it must be accurately appraised. Regardless of how an estimated value is reached, it will give the parties a guideline as to how much it will cost for a buyout.
A home inspector will assess the property for problems and issues for repair. That includes the possibility that there are termites, plumbing issues and more. If repairs are needed, the parties must decide who will pay for it and how that impacts the buyout. For those who cannot afford to buy the property outright, refinancing could be necessary. Factors like cost, credit scores, income and how much debt a person has will be considered when refinancing.
Some spouses could trade assets to the other in exchange for the home. Simply removing the former spouse from the title could be another viable alternative. When dealing with the financial aspects of the end of a marriage, having legal help may be key. Contacting a lawyer experienced in divorce, property division and other family law matters may provide guidance and advice.