Who Gets the Family Home in a California Divorce?

When you’re preparing to divorce, there’s no shortage of assets to split up. For many couples, the family home is one of the hardest to discuss. It’s where memories were made, children were raised, and where you put down roots. Deciding who gets the home can be both an emotionally charged and financially complex choice.

This is why it’s crucial to work with a divorce lawyer in California from the beginning of your divorce proceedings. California handles the division of assets a little differently than many other states, which you’ll need to keep in mind throughout this process. At the Law Office of Taylor B. Warner, APLC, we can help. Attorney Taylor B. Warner is a California Bar Certified Family Law Specialist, highlighting her commitment to clients going through some of the hardest times of their lives. Schedule a consultation with our divorce law firm now by calling us at 909-466-5575.

Community Property Basics in California

Most states are equitable distribution states—but California is a community property state, and it’s important to understand what that means when it comes to splitting up your assets. In general, property acquired during a marriage is owned equally by both spouses. This means that it must be divided 50/50 in divorce. A couple’s family home typically falls into this category, but not always.

There are situations in which a home is not considered community property. If one spouse owned it prior to the marriage, inherited it, or received it as a gift, it may be considered separate property, and their divorce lawyer may argue that it should not be divided.

It gets a little more complicated if the home was owned prior to the marriage but then maintained with family funds. For example, if one spouse bought the home prior to the marriage but then both spouses contributed to the upkeep and mortgage, the home may not be strictly separate property. When assets are commingled like this, the spouse who did not own the house may still have a claim to it during divorce.

Options for Dividing the Family Home

Once it’s determined whether a home is community or separate property, you have to decide how to split it up. There are a few possible outcomes, and your divorce attorney can help you decide which option is best suited to your needs:

• One spouse buys out the other: If one spouse wants to keep the home and can afford it on their own, they may buy out the other party by paying them their share of the equity. If both parties want to take ownership of the home, they’ll need to negotiate further or leave it up to the court to decide.
• The home is sold and the proceeds split: It’s fairly common for both parties to agree to sell the house and move on. Once the house sells, the proceeds are split between the spouses. This does require some cooperation on both parties’ sides, as they need to make the home available for showings, keep it tidy, and agree to the home’s price and terms.
• Deferred sale or nesting: While this outcome is not common, it can be very beneficial for the children involved. The parties may retain joint ownership of the home and take turns living in it during their custody time while the other parent lives in another property. This is called nesting. The couple may also allow one spouse to live in the home until the children are grown, at which point they sell the house and divide the proceeds.

Homes With Little or Negative Equity

When a home has significant equity, homeowners have options—but when they are underwater on a house, their divorce becomes significantly more complicated. The couple may opt for a short sale if they have lender approval, have one spouse assume responsibility for the debt in exchange for other assets, or allow the bank to foreclose on the house. Mortgage debt is typically treated as community debt.

Explore Your Options With Our Divorce Law Firm

If you’re facing divorce and you’re unsure about how to handle your marital home, it’s time to talk to the divorce attorneys at the Law Office of Taylor B. Warner. Give us a call at 909-466-5575 or get in touch with us online to discuss your options now.

Taylor Warner

Taylor has always been an advocate. Growing up the middle child with an older and a younger brother, Taylor developed a strong voice and personality and has always felt strongly about helping others. Becoming a lawyer seemed to fit Taylor’s personality and character – she is a strong leader and a bold advocate. Learn more here.