With divorces occurring frequently in California and other parts of the US, dividing real estate and other assets can be a complex matter. Couples who are going through a divorce have many challenges to conquer, but coming to a consensus about the property division process can be extremely. A home can represent emotional stability and security, especially when a couple had purchased the property together.
There are generally three main ways the division of property can be handled. A couple may decide to place their home on the market and split any profits or defer selling the house until later on when things have settled down a bit. In some instances, one party may offer to buy the other party out to remain in the home.
Couples who opt for selling the home and dividing the profits may benefit from the feeling of having a new beginning with a clean slate. The money from the house’s sale may help cover the costs of relocating or putting a down payment on a new home. On the other hand, couples who decide to co-own the house for now then place it on the market later on may find it beneficial to have the extra time to cope with the loss of their divorce until enough time has passed. This is often the preferred choice for couples with children.
In California, state law mandates that all assets and debts accumulated throughout a marriage belong equally to both partners. A court can order that a couple sells their house and other assets to cover any outstanding debts, which may that there will be less equity for them to split. Individuals who are going through a divorce should consider consulting with a property division attorney who may be able to help them explore the advantages and drawbacks of each option.