By Eduardo Ledesma, Real Estate Consultant & Auctioneer · Realty ONE Group Future · DRE# 01198626
Divorce & Real Estate in California: A Homeowner's Guide
Going through a divorce is hard. There is a lot to think about, and your home is often the biggest thing you own together. This guide helps you understand your basic options in plain language. It does not tell you what to do. That choice is yours, with help from the right professionals.
This guide is for general education only. It is not legal, tax, or financial advice. Every divorce is different. Your situation may be different from what is written here. Please talk to a professional about your own case.
Your Three Basic Choices
Sell the home
You both sell the home. After the loan and selling costs are paid, the remaining money is handled according to your agreement, the law, or what a court decides. A real estate professional can help estimate the home's market value and estimate what may be left after paying off the loan and the costs of selling, such as escrow, title, closing, and agent services.
One spouse keeps the home
One of you keeps living there. This usually means buying out the other person's share, and it can require a new mortgage in one name. The spouse who keeps the home may need to cover the mortgage, property taxes, insurance, and upkeep on their own, and may need to qualify for a new loan in their name.
Wait
Sometimes it is better to wait until other decisions are made. A judge may decide this, or you and your spouse may agree. While waiting, the home still has ongoing costs like the mortgage, property taxes, insurance, and maintenance, and market conditions can change, so it helps to keep an eye on the home's value.
Each choice depends on your family, your money, and your situation. There is no single right answer.
Three Different Things to Understand
Many people mix these up. They are not the same:
Owning the home together
Who is on the title, or who owns the home.
Having a mortgage together
Who owes the loan.
Who receives money from a sale
How the money is handled.
These can change separately. You can own a home together even if only one person pays the mortgage. You can both be on the loan even if only one of you lives there. The rules about these can be complicated and depend on your situation.
Also, moving out, changing ownership, or getting divorced does not automatically remove a person's responsibility for a mortgage. If someone is on the loan, that responsibility stays unless the lender agrees to release them. Only the lender can address a release from the loan.
California Rules
California has rules about divorce and about homes. These rules can be complicated and depend on when you bought the home, how you paid for it, and what you agree on. If there is a court order, you must follow it.
After a divorce case begins, there may be rules about selling or borrowing against the home. These rules are not the same for everyone. Do not guess. Ask a professional.
Where Professionals Help
A California family-law attorney can explain your legal rights, ownership, agreements, and court requirements.
A CPA or qualified tax professional can explain possible taxes and tax exclusions.
A mortgage lender or qualified loan professional can explain refinancing, loan assumptions, and removing a borrower from a mortgage.
A real estate professional can explain your home's value, the market, your selling options, and the sales process.
About My Role
As a real estate professional, I can help you price the home, prepare it for sale, plan marketing strategies, review offers, negotiate, and coordinate the real estate transaction from start to finish. I do not give legal, tax, or mortgage advice. For those questions, please consult a qualified professional directly.
If you are thinking about selling, it can help to know your home's market value. A real estate professional can compare your home with similar homes and give you an idea of what it could sell for. There are also different ways to market and sell a home, and a real estate professional can explain which options fit your situation.
Working Together
When a home is sold during a divorce, both sides need to stay organized. I can help you understand the market, talk through options, coordinate showings and paperwork, and keep the process moving so you can focus on your family. Take it one step at a time.
Can we sell our house during a divorce?
A sale may be possible. Because there may be restrictions or required approvals during a divorce, it is best to talk to a California family-law attorney first. A real estate professional can then help you understand the market and the process.
Can one spouse keep the house?
Sometimes. One spouse may keep the home, but this often requires buying out the other person's share and may need a new mortgage. Talk to a mortgage professional.
Who gets the money from the sale?
It depends. The money is handled according to your agreement, legal requirements, or what a court decides. A family-law attorney can explain the rules for your situation.
Do we both have to pay the mortgage?
It depends on who is on the loan. If both of you signed the loan, both of you are responsible for paying it. Moving out or divorcing does not automatically change that. Talk to your lender about your options.
Do I have to pay taxes when we sell?
Maybe. There may be taxes on a sale, but there are also possible exclusions. A CPA or tax professional can explain what applies to you.
Official Resources
These are official resources for additional information. Please consult a California family-law attorney to understand how the law applies to your situation.
This guide is for general education only and is not legal, tax, or financial advice. The rules can be complicated and change over time. Please talk to a California family-law attorney, a CPA or qualified tax professional, and a mortgage professional about your own situation.
Let's Talk About Your Situation
If you are thinking about selling a home, I can help you understand the market and your options. Reach out any time. No pressure, just good information.