Handling property division with a marital home in a divorce
There are many issues that must be navigated in a California divorce. One of the most common sources of disputes is determining what will become of the marital home. Understanding the complexities and addressing them can avoid conflict and help craft a resolution.
There are three basic alternatives with a marital home. The simplest solution is to sell the property and share the proceeds. There are factors to remember with such a strategy. If there is profit from selling the property, capital gains taxes might need to be paid. Selling the property also makes it necessary to find another place to live, and financial considerations are critical when deciding whether to buy a new home or rent.
Another choice is one spouse buying out the other and keeping the property. Before doing this, it is wise to know how much the property is worth and negotiate how much to pay. This should include costs and potential future costs. The selling spouse’s name will be removed from the property, but it might remain on the mortgage. This can impact his or her credit. Refinancing the mortgage could be a preferable tactic, so the former spouse who is selling the property can be free of any connection to it.
Finally, the parties can retain the property and continue as before even though they are divorced. This may be a viable solution for individuals with children who want to remain in the home. Exes who are on relatively good terms can discuss how to handle expenses, maintenance, taxes and other issues. This might not be the wisest solution for couples who have an acrimonious relationship. Property division can be a complicated aspect of divorce. For this and other divorce legal issues, it might be useful to get legal advice about dividing marital property.