There are a number of different ways that you can deal with the family home in the context of your divorce. The first decision is whether either you or your spouse wishes to remain living in the marital home and can afford to do so. In many cases, the marital home is the parties’ biggest community asset, but it also may represent the parties’ largest debt, in the form of a mortgage loan. While a couple may have been able to pay expenses related to the home while married and physically living together, it is often the case that neither spouse can afford to pay those expenses on his or her own. In this type of situation, the parties may have no choice but to sell the home, pay off the mortgage loan, and divide any proceeds according to California law. If the proceeds from the sale of the home are insufficient to pay off the mortgage loan, then both parties are responsible for any deficiency owed to the mortgage company. That debt normally would be addressed in the parties’ divorce proceedings, along with any other debts they hold.
If one spouse chooses to remain in the home, then he or she will be credited with the net value of the home in terms of the parties’ overall property division. The net value of the home is the value of the home less the mortgage debt owed on the home. If the net value of the home is substantial, then the spouse receiving possession of the home may receive few other assets. In most cases, the other spouse who is not receiving possession of the home must be compensated with assets with roughly the same net value as the home.
Divorces and the myriad of issues that they involve require legal advice from an experienced divorce attorney who knows the law and know how to help you. Contact the Law Offices of Vincent W. Davis & Associates today and let us show you how we can assist you with your California divorce case. Our attorneys focus their practice primarily on divorce and family law, no matter how complicated your case may be. We can answer your questions, calm your concerns, and help guide you through the often complex process of divorce and family law proceedings.