What are my legal options for dividing the equity in the family home during a California divorce?

In a California divorce, you can sell the family home and divide the proceeds, have one spouse buy out the other's equity, or, in some cases, defer the sale until a later date. The goal is to divide the community property portion of the equity equally. Here are the steps to divide your home's equity: Step 1: Determine the Home's Fair Market Value You and your spouse should agree on the home's current market value. The best way to do this is to hire a certified real estate appraiser. If you cannot agree on one appraiser, each of you can hire your own, and you can negotiate based on the two reports or ask the court to decide. Step 2: Calculate the Community Equity Subtract the total amount owed on the mortgage and any other home loans from the agreed-upon fair market value. The result is the total equity in the home. This is the figure you will work with for division. Step 3: Identify Separate Property Reimbursements Under California Family Code Section 2640, a spouse is entitled to be reimbursed for their separate property contributions used to acquire or improve the home. Gather financial records, such as bank statements or gift letters, that prove you used funds from an inheritance, gift, or pre-marital savings for the down payment or major improvements. These reimbursements are paid before the remaining community equity is divided. Step 4: Choose a Division Method and Formalize It Negotiate with your spouse to select one of these options and include it in your Marital Settlement Agreement: * Immediate Sale: Sell the home, pay off the mortgage and any separate property reimbursements, and divide the remaining cash proceeds equally. * Buyout: One spouse keeps the home by paying the other spouse for their share of the community equity. This usually requires the spouse keeping the home to refinance the mortgage into their name alone. * Deferred Sale: If it is in the best interest of your minor children, you can ask the court for a "deferred sale of home order" under Family Code Section 3800. This allows the parent with primary custody to live in the home with the children for a specified period, after which it is sold. Important details and nuances: Property acquired during the marriage is presumed to be community property, which must be divided 50/50. If one spouse buys out the other, the payment can be made with cash from the refinance or by trading other community assets of equal value, such as retirement accounts. Warnings and limitations: A buyout is only possible if the spouse keeping the home can qualify for a new mortgage on their own. Selling the home may have capital gains tax implications. A deferred sale is not automatic and depends on what the court finds is best for the children and economically feasible for the parents. This is general information and does not constitute legal advice. For complex situations, especially those involving separate property claims or a deferred sale, consult with a qualified California attorney.