What Happens to a Community Property Home in a Divorce?

December 9, 2024

When dividing a community property home in a divorce, couples generally have two main options:


1. Sell the Home and Split the Proceeds

This is the most common option. The home is sold, and after paying off any remaining mortgage, the proceeds are divided equally between both spouses. This option provides a clean financial break for both parties.


2. Buy Out the Other Spouse’s Interest

If one spouse wants to keep the home, they must ""buy out"" the other’s share of the equity. This requires determining the home's value, subtracting any mortgage debt, and paying the other spouse their share. Often, this means refinancing the mortgage to access the funds needed for the buyout.


Which Option Should You Choose?

Each path has pros and cons. Selling offers simplicity, while a buyout provides continuity, especially for families with children. Choosing the right option depends on your financial goals and emotional priorities.


Need guidance? The Tabo Law Firm is here to help. Call (916) 866-8856 to schedule a consultation and get personalized legal support."

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