Even a divorce that starts out amicable can eventually turn into a battle – despite well-intentioned efforts to remain civil. Regardless of who was to blame or whether you just drifted apart, divorce can be a time to start a new life.
Divorce brings change, both personal and financial in the lives of both parties. Sometimes, a lot of pressure and stress lead a party to think about selling real property in order to raise capital for attorney fees or debt reduction. Is your biggest asset your marital residence? Deciding what to do about it is often a major issue.
One option is to sell the house and divide the proceeds because in many cases, neither spouse can afford to buy out the other and keep up with the expenses after divorce.
A second option is to arrange a buy-out. If one spouse has the ability to buy-out the other, he or she can arrange to refinance the loan and pay the other spouse an agreed-upon share of the equity.
A third option is to maintain the status quo and continue to own the house together. This option is most common when children are still in school and it would benefit them to remain in the home and in their current school for a few more years. In this option, one spouse usually moves out.
California is a community property state, which means that each spouse receives an equal stake in the ownership of any property accumulated during the marriage, and upon divorce, all marital property and debts will be divided between the couple equally and fairly.
Equitable distribution considers several factors in order to determine fairness for each of the parties, including:
- Ascertain what property to divide
- Determine the value of the property
- Distribute the property
If you have any questions regarding property division, an experienced family law attorney can help you better understand how well you will likely fair in an equitable division situation.
Our office has experience in handling all types of divorces, from the most complex to the most simple and we can help you. If you are going through a divorce, please call the Orange County family law offices of Amy M. Montes to discuss your case.
