What are your options for the house in a divorce?
You generally have three choices for the family home, and the right one depends on your finances, your timeline, and whether either person wants to keep living there. The first option is to sell the home and split the net proceeds. This is the most common path in California because it converts a large, shared, hard to divide asset into cash that can be allocated cleanly between the two parties. It also fully separates your finances, so neither person remains tied to a mortgage or a title with the other. The tradeoff is that both people move, and you give up the home itself, which can carry emotional weight.
The second option is a buyout, where one spouse keeps the house and pays the other their share of the equity. This works well when one person wants to stay, often to keep children in the same schools, and when that person can qualify for a new loan or refinance in their own name and afford the payments alone. The challenge is affordability and appraisal: you need an agreed, accurate value for the home, and the staying spouse must be able to carry it without the other's income. A neutral valuation is essential here so the buyout price is fair to both.
The third option is to co-own the home temporarily, sometimes called a deferred sale. Couples choose this to avoid uprooting children mid school year, to wait out a soft market, or to let a short term financial situation stabilize. It requires a clear written agreement covering who pays the mortgage, taxes, insurance, and repairs, how long the arrangement lasts, and how and when the eventual sale happens. The risk is that it keeps two people financially entangled longer, which can create friction if circumstances change. There is no single right answer. Sell and split gives the cleanest break, a buyout preserves a home for one person, and temporary co-ownership buys time. Your attorney and CPA can help you weigh the legal and tax consequences of each, and a neutral agent can give you an accurate value so whichever path you choose starts from honest numbers rather than a guess.