California divorces can be complicated with a seemingly endless list of issues that need to be navigated. Property division frequently comes to the forefront with both parties wanting to retain as much as possible. In some cases, it is a simple and relatively amicable process. In others, it is harder to come to a resolution.
This is especially true with items of significant value where there is a dispute as to who is the rightful owner. A marital home can be one of the most valuable assets a couple has. Coming to an agreement can prove difficult. It is important to understand the law for property division to achieve a fair outcome.
What to consider when dividing a marital home in a divorce
The couple might disagree on how to classify the property. If one person owned it before the marriage, they could say it is separate property and claim it belongs to them to do with as they see fit. However, the other person might respond that they contributed to its upkeep, payments, improvements, and other factors that increased its value. This might make the increase in value community property. The value could be commingled meaning it is part separate property and part community property.
A person could want to retain the home and live there after the divorce. Perhaps they have school-age children and do not want to disrupt their routine by forcing them to move and possibly change schools. If the home is community property, they would likely need to either buy out the other person or exchange other property to keep it.
The value of the home and deciding to sell it could also present challenges. Accrued equity from when it was purchased and its increase in value could be a topic for disagreement. Even if they try to sell it, there are often gaps in what one person is willing to accept and what the other wants for the property.
People should be protected when dividing a marital home
Any divorce can be contentious. Often, people will go back and forth about finances in myriad ways. A marital home is commonly at the center of these cases. If the sides can negotiate a settlement, it will save them time, money, and stress. However, there are times when this is impossible and they need to go to court. Regardless of how they split the property, it is essential to be fully protected and have advice on all areas of family law and divorce.