For many people, their home is their biggest asset. Aside from finances, a marital home holds a lot of emotional significance. You may still be grieving the loss of the memories you hoped you would have within the house. California is a community property state, and as such, everything you acquire during the marriage will be split. There are some exceptions to this rule, that your mediator can explain fully as it applies to your situation. While a home can be divided 50/50, there are some other creative options on what to do with your home during a divorce.
Sell Your Home
For many divorcing families, keeping the home isn’t financially possible. While one spouse may want to maintain the home, being able to pay the mortgage, property taxes, and insurance on one salary may not be doable. Many divorcing couples lean towards selling the marital home and splitting the profits or losses.
Buy the Other Spouse Out
If you would like to keep the home, you will need to buy out the spouse of their share. While you can pay cash outright, you can also use other assets to purchase the house, if the other spouse agrees. For example, you could exchange part of your share of a 401k for your spouse’s interest in the home, however it is necessary to remember the tax ramifications are different, which your mediator or accountant can help you consider. The great part about mediation is being able to come up with creative solutions for splitting assets rather than being limited, like in a court setting.
Own the Home Jointly
While this may not be for everyone, you and your spouse can agree to continue to own the home jointly. This would be a good option for spouses who still maintain a respectful relationship and may want to wait for the market to improve before selling the home. Another common reason to continue owning a joint home is to provide stability for children. Divorce and moving are two enormous adjustments for a child to process; it may be worth it to keep the same environment for a while. Our mediators can walk you through the pros and cons of joint ownership, and both parties can make an informed choice about what is right for their particular situation.
For more information about what to do with your home during a divorce, contact West Coast Family Mediation Center at (858) 736-2411. Schedule your initial consultation with us today!