Selling your house in a divorce is a major decision. You may love your home, have children that you want to keep raising in it, or have other attachments to the house. We don’t know your circumstances, but you can sell your home during a divorce.
Spouses can agree to:
- Sell the home and split the proceeds
- Buy each other out (using multiple strategies)
If one spouse wants to sell the home and the other doesn’t, the issue may end up in front of a judge who can order the sale of the property.
Contact us at one of our offices in Santa Rosa, Petaluma, or Ukiah to discuss your divorce further.
Is It a Good Idea to Sell or Keep Your Home During Your Divorce?
Spouses must consider whether to sell the home or not. If the house was bought before marriage and/or with income earned before marriage or by inheritance, it may not be considered community property that can be divided.
If the home is marital property, then you need to consider:
- Children: When children are involved, you may want them to attend the same school, keep their same friends, and avoid selling the home at all costs.
- Furniture: If the home is to be retained by one party, what happens to the furniture? Will you divide the furniture, or perhaps give up certain other assets to keep the furniture in the home?
- Household items: Your home is filled with more than just furniture. How will you divide all of the household items, such as your pots and pans, electronics, etc.?
Selling the home may be an option if neither spouse wants to keep the property or can afford to do so. If, however, one spouse works close to the home or doesn’t have the means to purchase a new home without their spouse’s income, it may be better for one spouse to buy out the other person’s share in the home.
What Is the Process for Selling the Home During the Divorce?
Selling your house in a divorce is a process that varies, but it often goes something like this:
- Prior to the divorce being finalized, the home is sold
- Proceeds are split evenly to allow each partner to start their new life with finances to buy a new home or rent
Spouses can agree to unequal distribution of the sale proceeds or to set aside a certain sum of the proceeds until a final division of assets and debts can be agreed upon. Your agreement will often have stipulations that both spouses cooperate throughout the sales process and will outline distribution of the sales proceeds.
Who Will Get the Home in the Divorce If We Do Not Sell During the Divorce?
If you don’t sell the house during the divorce, California’s community property laws will come into play to determine who will get the home.
The term “community property” refers to assets and debts acquired during a marriage, and these assets must be divided equally in a divorce unless otherwise agreed in writing.
- If the house is jointly owned, meaning both spouses are listed on the title or deed, it will be considered community property.
- If the home was owned by one spouse prior to the marriage and it remained separate property throughout the marriage, then it may not be considered community property.
In most cases, the house is considered community property and should be divided as such.
There are a few potential scenarios here:
- You and your ex can come to an agreement on who owns and keeps the home. However, the court will still need to review the agreement and approve it before it can become official.
- One spouse can buy out the other spouse. In this case, the buying spouse would keep the home but would have to pay the other spouse their share of the home’s value.
- If you have minor children still living at home, you may choose to defer the home’s sale for an agreed-upon amount of time. Both spouses will remain joint owners. However, the custodial parent will have exclusive access to the home until it’s sold.
- The court will decide. If you and your spouse cannot come to an agreement, the court will make the decision for you. Various factors will be considered to ensure a fair outcome.
Community property laws make property division complicated. An experienced attorney can help you understand your options and help you navigate this area of divorce.
How An Experienced Attorney Can Help You Determine the Right Approach for Your Home in a Divorce
Selling your house in a divorce can be stressful and complex, but for some couples, it is the best solution. For others, coming to an agreement or deferring the sale is more practical.
Finding the right approach for your home can be a challenge.
The experienced attorneys at Wine Country Family Law, P.C. can guide you through this difficult aspect of divorce. We’ll explain your rights, property division laws, and the advantages and disadvantages of your options.
Contact us today to schedule a consultation.