How should divorcing couples divide their homes in Carlsbad, Encinitas, Oceanside or Vista? When California couples divorce, property division issues such as the family home can be challenging and drawn out. Often, each spouse has something that he or she wants and is willing to make concessions to get. However, a challenge presents itself with the couple’s home, which tends to be a coveted piece of marital property. There are a few different ways of dealing with this predicament, and some solutions which are more effective than others.
In a few unusual cases, a couple opts to retain joint ownership and treat the home as an investment property. However, more often, a couple wants a final division of the home’s value; the couple might sell the home and divide the proceeds. This option is relatively straightforward and allows both individuals to walk away from the credit risks of a post-divorce mortgage.
How should divorcing couples divide their homes if one party wishes to keep the house? When this happens, that individual could buy out part of the home from the other. It might then become necessary to modify the mortgage for the single owner. This can usually be accomplished by the owner refinancing in his or her name only.
Sometimes, the spouse who does not keep the home will purchase a new home before the divorce is finalized. If legal precautions are not taken, the new home could be legally included in property division. In order to avoid this, the non-buying spouse would have to sign a quitclaim deed denying interest in the new property.
California’s community property laws can be quite complex. A divorcing couple may not have the resources to properly assess and divide their property on their own, so each spouse should consider seeking legal representation from a firm like Burke & Domercq. We invite you to contact us or call 760-712-3741 to schedule an appointment.