During divorce, determining what to do with assets is often a main concern. California residents may have understandable worries about what will happen with their homes during property division. One option divorcing parties could go with is agreeing to sell the home and split the proceeds. However, this option may not work for everyone.
A second option to consider for parties who want to keep the home is buying out the other spouse. With this route, an individual provides compensation for the other individual's stake in the home, and that compensation may come as an agreed monetary amount or potentially by way of exchanging other assets for the home. Of course, keeping the home could come with financial impacts to consider, such as keeping up with bills and expenses on a single income.
Some individuals may forgo selling the house during their divorce proceedings. As a result, both parties retain ownership. However, this arrangement is often temporary, and therefore, individuals should keep in mind how they would like to address the sale of their home when the time comes. Additionally, such an arrangement may not work for individuals who are not remain on amicable terms.
A variety of outcomes could result from selling a home, especially if the sale is taking place due to divorce. Therefore, California residents should consider the potential implications of each option and determine how their property division proceedings could be impacted by each one. Discussing these concerns and possibilities with experienced attorneys would help individuals come to informed decisions during their proceedings.
Source: myvalleynews.com, "How to avoid costly housing mistakes in a divorce", Mike Mason, Jan. 28, 2017