Going Through a Divorce in California? Here's What Happens to Your Home.
California is a community property state — which means the family home is almost always split 50/50. But there are automatic restraining orders, tax timing issues, and three distinct paths forward that every divorcing couple needs to understand before making a move.
The family home is almost always the largest asset in a divorce. In Southern California — where the average home value sits near $920,000 — how you handle it can mean the difference of tens of thousands of dollars for both parties.
Your home is community property
In California, a home purchased during the marriage is typically owned equally by both spouses — regardless of whose name is on the mortgage or deed. Under Family Code §2550, the equity is generally divided 50/50. Neither spouse can unilaterally decide what happens to the home.
You can't sell it on your own once a petition is filed
The moment a divorce petition is filed in California, Automatic Temporary Restraining Orders (ATROs) take effect automatically under Family Code §2040. Neither spouse can sell, transfer, encumber, or refinance the property without written consent from both parties or a court order. These orders remain in effect until a judgment of dissolution is entered.
Your three options for the home
Sell together and split the proceeds. The cleanest and most common path. Both spouses agree to sell, and the net proceeds are divided according to the settlement agreement.
One spouse buys the other out. One spouse keeps the home by refinancing into a solo loan and paying the other their share of the equity. Given current rates of 6.5–6.8%, lenders typically require debt-to-income ratios below 43%.
Co-own past judgment. Both parties continue co-owning under a written agreement — often used when minor children are involved. Requires a clear, legally binding agreement on costs and an eventual exit timeline.
Timing the sale affects your taxes
Selling before the divorce is finalized often yields the best tax outcome. A married couple filing jointly can exclude up to $500,000 in capital gains. After divorce, each individual can only exclude $250,000. In high-appreciation SoCal markets where gains regularly exceed $500,000, timing matters significantly.
The commission question
Average California agent commission is 5.03% as of 2026. On a home near the LA median of $920,000, that's over $46,000 coming out of what two people are already dividing. A direct cash offer eliminates commission entirely and closes in days rather than months.
We work with both parties — and their attorneys.
A divorce sale is not a typical real estate transaction. We can step in as a neutral solution — a direct cash offer that both parties can agree on quickly, or licensed agent representation to maximize the sale price. Everything handled with complete discretion.
This article is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult a licensed California family law attorney and CPA regarding your specific situation. Open Market Offers operates under a licensed California real estate agent.