Many California couples whose marriages are coming to an end own a home together. Deciding how to handle it is very important, as it may be the largest asset they own, and it may also be difficult for one party to be able to afford to remain living in it alone after the divorce is finalized.
If there is little left to pay on the mortgage or a sizable amount of equity built up, it might be a good idea for the couple to sell the home and split the equity. When there is a lot left to pay on the mortgage and both parties’ names are on the loan, it might be smart to try to sell it in order to get both spouses’ names off of the mortgage. If one intends to remain in the home, then he or she should be required to refinance it within a set period of time.
Some people who determine they are unable to afford to live on their own choose to remain in the home together following their divorces. This option is normally only a good idea if people are able to get along reasonably well and their financial circumstances demand their staying as cohabitants.
The division of marital assets may be very complicated. When one party will receive the marital home as part of a settlement, it is important to determine how to divide the remaining assets in a manner that compensates the other party for the resulting loss of equity. The estranged spouses and their respective family law attorneys can often negotiate an appropriate solution.