Our clients often ask if it is better to sell the family home or keep it during a Carlsbad divorce. Once the decision to divorce has been reached, the disposition of the family home is one of the major issues to be decided.
Much like child custody and parenting time, the division of community property and the disposition of the family home can be upsetting and challenging topics to resolve. The memories associated with the family home and the sentiment behind keeping it or the power of winning control of it during the divorce can influence what should be a sound and calm financial decision. Is it in your best interest to seek possession of the home or sell it?
Usually, the home has been supported by multiple income streams, and now the parties will each be seeking to establish their own residence. The financial challenge of balancing your own independent situation after the divorce should weigh into the decision regarding the disposition of the family home.
One of the most important aspects of the decision to sell the family home or keep it in a Carlsbad divorce is equity. The question of equity must be evaluated. If one of the parties wishes to keep the home it will usually require an agreed upon appraisal of the home’s fair market value less encumbrances to arrive at the amount of equity in the home. The equity in the home achieved during the course of a marriage is community property and should usually be divided as such.
If one party wishes to keep the home they must usually offset the other spouse’s portion of the community property interest in the equity of the home. There will also need to be assurances regarding the payment of underlying mortgage(s) to protect the credit of all parties. Just because a divorce court orders the home to be awarded to one party doesn’t mean the underlying finance companies have to release the other party.
These matters are quite legally and financially complex, and you should seek the advice and counsel of the experienced and proven Certified Family Law Specialists at Burke & Domercq.