A marital home can be the most difficult asset to divide when spouses divorce in California. Not only is it typically the most expensive asset people have, but it can carry great emotional value as well.
As such, parties can struggle when it comes to deciding what should happen to the house in a divorce. Below, we examine three possible solutions for what to do with a marital home as well as some benefits and drawbacks to consider for each option.
One person keeps the house
Keeping a home can help maintain consistency and stability. This can be especially important when there are kids in the home whom parents don’t want to uproot during a difficult time.
However, perhaps the biggest drawback to keeping a home is the financial responsibility. Keeping a home requires one person to buy the other person out, refinance the mortgage and take on all home-related expenses alone. This is often too great a challenge for people; for some, it is impossible.
You both keep the home
If selling a home doesn’t make financial sense but neither of you can or wants to keep it, you can keep the home and both continue owning it. You might decide to rent it out and split the profits and responsibilities or maintaining the home, which may work if you both get along.
However, owning a home together ties you to an ex and it will likely mean regular interactions regarding ownership duties.
You sell the house
Selling the house can help you move forward without the unmanageable expenses of keeping the home or ties to your ex. You can split the proceeds and go your separate ways.
However, selling a home can be emotionally devastating. It can also require parties to agree to a price, which isn’t always easy; in some cases, you might wind up selling the home for less than it may be worth.
Finding the right solution
Deciding what to do with a home in a California divorce is a difficult decision that every person must make after careful consideration of the options. However, with legal and financial guidance, it can be easier to make an informed decision that reflects your best interests.