Can You Keep the Family Home After a Divorce in California?

Divorce is a challenging process, and one of the most emotionally charged issues is deciding what happens to the family home. For many couples in California, the family residence represents financial stability and emotional security. Under California law, property division follows strict guidelines, making it essential to consult Foster Hsu, LLP to understand your rights and options when it comes to keeping the home after a divorce.

Is the Family Home Community or Separate Property?

California is a community property state, which means that any assets acquired during the marriage are typically considered jointly owned by both spouses. If the home was purchased during the marriage using exclusively marital funds, it is community property and subject to equal division between both parties.

However, if one spouse owned the home before the marriage or received it as a gift or inheritance, it may be considered separate property and remain with the original owner. That said, if marital funds were used to pay the mortgage, make improvements, or refinance the home, the other spouse may still have a financial claim to part of the home’s value.

Options for Keeping the Family Home

If you wish to keep the family home after a divorce, you have several options:

1. Buying Out Your Spouse

One of the most common solutions is a buyout, where one spouse pays the other their share of the home’s equity. This can be done using:

• Personal savings
• Refinancing the mortgage in your name
• Trading other marital assets, such as retirement accounts or investments

A professional appraisal may be necessary to determine the home’s fair market value before finalizing a buyout.

2. Co-Owning the Home After Divorce

Some ex-spouses agree to retain joint ownership of the home for a set period, often for the benefit of children who may still be living there. Common co-ownership agreements include:

• One spouse continues living in the home while the other retains financial interest
• Selling the home at a later date (e.g., after the children graduate)
• Sharing mortgage payments and home-related expenses

While this option can provide stability, it requires a high level of trust and cooperation between ex-spouses.

3. Selling the Home and Splitting the Proceeds

If neither spouse can afford to keep the home alone, or if an agreement for keeping the home cannot be reached, selling the property and splitting the profits may be the best solution. This approach allows both parties to start fresh financially. However, it is important to factor in:

• Capital gains taxes
• Realtor fees
• Any outstanding mortgage balance

Court Considerations in Dividing the Home

If you and your spouse cannot agree on what happens to the home, the court will step in and make a decision based on factors such as:

• Financial ability: Whether one spouse can afford the mortgage, property taxes, and maintenance costs
• Children and their stability: Courts may allow children to remain in the family home if they are graduating high school soon
• Equity and debt: A fair division of assets and liabilities is key

Consult an Experienced Divorce Attorney

Navigating the division of a family home in a California divorce can be complex. Whether you want to keep the home, negotiate a buyout, or explore co-ownership options, an experienced San Jose divorce attorney at Foster Hsu, LLP can help protect your rights and financial future. Contact us today to discuss your case.

Source:

selfhelp.courts.ca.gov/divorce/property-debts