One of the most painful things a couple must address during divorce is what to do about the family home. With its many memories and milestone moments, it can be difficult for either party to part with their home.
Since this asset holds financial and emotional value, deciding how to divide it between spouses can be complicated. Here are three ways many couples divorcing in California deal with the marital home:
1. Spousal buyout
In a buyout, one spouse purchases the other’s interest in the home. It allows one spouse to retain the property while compensating the other for their share. This option is beneficial if one spouse wishes to remain in the home, especially if children are involved. However, it can prove expensive to maintain on a single income.
2. Immediate sale
Selling the home immediately and splitting the proceeds is another common option that provides a clean break and allows both parties to move on. The sale proceeds are typically divided equally, although adjustments may be made for any separate property contributions. This option can help if neither spouse can afford to keep the home or when both prefer to start fresh.
3. Deferred sale
A deferred sale allows the custodial parent and children to remain in the home for a specified period. The house is then sold, and the proceeds are split between spouses. This option provides stability for the children but requires cooperation between spouses regarding maintenance and expenses.
Each option has pros and cons, and the best choice depends on your specific and unique circumstances. A divorce representative can help you make informed choices when deciding what to do with the family home.
