The marital home is often the most valuable asset that’s part of a marriage. It’s also one that typically has significant emotional value. In California, community property laws dictate how property is divided during a divorce. This means that the emphasis during division is on equality and not equity, which is important since the home will likely either be sold or bought out by one party.
Ownership doesn’t automatically determine who gets to keep the home. Instead, the value will usually have to be divided unless the home is separate property, a prenuptial agreement is in place or there is a current property division agreement in place. Understanding how community property can affect property division may be beneficial for those who are facing this type of situation.
What does community property mean?
If the home was purchased during the marriage, it is likely considered marital property, regardless of what party is listed on the deed or mortgage. Each spouse is entitled to half of the equity in the home.
The situation becomes a little more complex if the home was owned by one party before the marriage. The home itself will likely remain with the original owner, but mortgage payments and improvements that were made with marital funds can result in a community property interest in the increased equity in the property.
When possible, people who are going through a divorce may try to work out the property division agreement on their own so they have a bit more control over how everything, including the marital home, is split. If that’s not possible, turning the court for the division might be necessary. Seeking assistance from someone who understands the situation and can help to explore the options may be beneficial.