Everyone knows how prohibitively expensive California real estate is, and that presents an obstacle when spouses are trying to keep their homes after a divorce. However, out of the recent economic chaos comes an opportunity for these spouses. Retaining the marital home has gotten slightly easier as conditions have changed. So long as it makes economic sense, spouses stand a better chance of accomplishing their goal.
The current economic displacement has slashed real estate prices. For most homeowners, this is a source of consternation. However, for those who need to purchase a home or part of it, this presents an opportunity because it reduces the amount of money that one spouse needs to pay the other. In addition, the mortgage rates have plunged to historic lows, meaning that refinancing can drastically lower monthly payments.
Then, a spouse needs to consider whether buying out the other spouse is an economically viable course of action. In many cases, real estate is a sound investment and owning a home is a great way to gain exposure to this asset class. However, it is also best not to concentrate all of one’s financial resources in one area. Nonetheless, this is an advantageous time to purchase an interest in real estate as prices historically increase for this asset and it is on sale for a discount right now.
Keeping the home in divorce is not always a given because the other spouse may want to remain in the home themselves. A divorce attorney could be helpful to handle negotiations with the other spouse to figure out the terms of the divorce agreement that pertains to the home. If there is no agreement, the attorney may take the matter to a hearing in court where they would seek to persuade the judge to let their client keep the home.