When a couple divorces, real property is often the most expensive asset that they have to divide.  The parties may not be aware of the different options concerning how to divide this property.  Some options may include:

Selling the Property

If neither spouse wants to keep the property or believes that they would be unable to afford to keep and maintain it, selling the property may be the best option.  Once the property is sold, the couple would split the proceeds.  The proportion that each spouse is entitled to depends on whether the property is community property or marital property, how much each party contributed to paying off the property or enhancing its value and any agreement between the spouses regarding this distribution.

Rent the Property

In down real estate markets, the spouses may agree to rent out the property.  The rental income may be used to offset spousal support or otherwise supplement one of the spouse’s incomes.  The couple may also agree to split the income between them.

Agree to Sell

The parties may agree to sell the property but at a later point in time.  This type of agreement may include more details and instructions, including a minimum amount that a spouse would be willing to accept for the sale of the property and which real estate agency or firm to use for the transaction.

Buy Out a Share

Another possible option is for one spouse to keep the property by buying the other spouse out of his or her share.  This may be accomplished by substituting assets that are of a similar value to the other spouse’s share of the home.  The spouse who will retain possession of the home is often required to refinance the property so that the other spouse is not still financially liable or linked to the property.