Sell, buy out, or keep co-owning the house?
When you're divorcing in California, the house is usually the biggest shared asset — and the hardest to decide about. Four questions about children's stability, whether one spouse can carry the mortgage alone, how urgently you both need the equity, and where your agreement stands point you to the path that fits your situation. Free, bilingual, and not a substitute for your attorney.
Common questions
Who gets the house in a California divorce?
California is a community property state: a home bought during the marriage generally belongs equally to both spouses, regardless of whose name is on the deed or who paid the mortgage. Couples resolve it one of three ways — sell and split the proceeds, one spouse buys out the other (usually by refinancing), or they keep co-owning for a defined period. If they can't agree, a court can order the home sold.
Can one spouse sell the house without the other's agreement in a divorce?
Not if both are on title — both owners must sign. And standard family law restraining orders that take effect when a California divorce case is filed generally prevent either spouse from transferring or encumbering community property without the other's written consent or a court order.
What capital gains tax applies when selling a house during a divorce?
Each spouse can exclude up to $250,000 of gain on the sale of a primary residence, so a couple can often shelter up to $500,000 combined — a meaningful exclusion in Southern California. Residency and timing rules apply, including divorce-specific provisions for a spouse who moved out; confirm eligibility with a CPA before finalizing the plan.
Does a buyout trigger a Prop 13 reassessment of property taxes?
No. A transfer of real property between spouses in connection with a divorce settlement is excluded from reassessment under California Revenue and Taxation Code §63. The spouse who keeps the home retains the existing assessed value, which is often a significant financial advantage worth considering.