Steps to Selling a House During a Divorce in California
Divorce is difficult. Selling a house during a divorce in California adds another layer of stress, but with the right plan, you can move forward smoothly.
If you’re selling a house during a divorce in California, this guide breaks down the entire process step by step. You’ll learn how California law views property division, what to expect with taxes, and how to make sure you protect yourself during the sale.
Step 1: Decide If Selling Now Is the Right Option
Before jumping into the listing process, both spouses should agree on the best approach. In most cases, you’ll face three main options:
- Sell the home outright and split the proceeds.
- One spouse buys out the other’s share, taking full ownership.
- Hold onto the property temporarily, either as a rental or until the market improves.
Because California is a community property state, most assets acquired during the marriage — including a house — are considered jointly owned. That means the equity will typically be split 50/50 unless you have a prenuptial agreement or a court order that states otherwise.
Step 2: Know the Legal Ground Rules
After divorce papers are filed, Standard Family Law Restraining Orders usually go into effect. These orders prevent either spouse from selling, refinancing, or transferring property without written agreement or a judge’s approval.
If both parties agree to sell, the process is relatively straightforward. But if one spouse refuses, the court may order the sale of the home to divide the proceeds fairly. Judges often consider factors like:
- Whether the home is community property.
- Each spouse’s financial situation.
- Best interests of children living in the home.
If you anticipate conflict, it’s smart to consult a divorce attorney before listing.
Step 3: Establish the Home’s Value
Pricing disputes are common when selling a house during a divorce in California. To minimize conflict:
- Hire a professional appraiser to get a neutral, expert valuation.
- Ask your real estate agent to prepare a Comparative Market Analysis (CMA).
- Review recent sales of similar homes in your neighborhood.
Having a fair, documented value makes it easier to set a realistic listing price.
Step 4: Decide on Living and Financial Arrangements
While the home is on the market, both parties need to agree on practical matters:
- Who will live in the home until it sells.
- How the mortgage, utilities, and upkeep will be paid.
- Rules for showings and access for agents and buyers.
Putting these agreements in writing helps avoid conflict later. In some cases, the court may set these terms if the couple cannot agree.
How to Sell Your Home During a California Divorce: Step-by-Step
Step 5: Choose the Right Professional Help
Selling a home during divorce is not a typical real estate transaction. Look for professionals who have experience handling these situations, including:
- Real estate agents familiar with divorce sales.
- Escrow officers who can follow court or settlement instructions carefully.
- Attorneys or mediators, if disputes arise.
The right team will act as neutral facilitators and ensure both parties are kept informed.
Step 6: List and Market the Home
Once agreements are in place, it’s time to list the property. Tips for success include:
- Take professional photos to show the home in its best light.
- Keep the description clear and accurate — focus on benefits, not emotions.
- Agree on a marketing plan that reaches qualified buyers quickly.
When offers come in, don’t just look at the price. Consider:
- Buyer’s proof of funds or mortgage preapproval.
- Contingencies (such as inspection or financing).
- The proposed closing timeline.
Both spouses will need to sign off on accepting an offer, so plan for discussions ahead of time.
How to Sell Your Home During a California Divorce: Step-by-Step
Step 7: Escrow and Closing in California
In California, escrow is the neutral third party that manages the sale. Escrow officers handle title searches, payoffs, recording, and distributing funds. This ensures neither spouse controls the process unfairly. Escrow ensures both spouses are treated fairly when selling a house during a divorce in California.
Red flags to watch for:
- Buyers requesting large upfront fees.
- Pressure to bypass escrow.
- Non-standard contracts.
Always keep the transaction inside escrow for protection.
Step 8: Understand the Tax Implications
Taxes can make a big difference in your net proceeds. Here are key points to know:
Capital gains exclusion: If the property was your primary residence for at least two of the past five years, you may exclude up to $250,000 in gains as a single filer, or $500,000 as a married couple.
Divorce considerations: If the divorce is finalized before the sale closes, you may lose the joint exclusion benefit. Timing matters.
Moving out early: If one spouse moved out before the sale, they may still qualify for the exclusion if they meet the use and ownership tests.
Because tax rules are complex, talk to a CPA before finalizing the sale.
Step 9: Dividing the Proceeds
After closing, escrow will distribute net proceeds based on your settlement agreement or court order. Typically, this means a 50/50 split in California unless otherwise directed.
Clear instructions to escrow avoid last-minute disputes and delays.
Emotional and Practical Tips
Beyond the financial and legal details, divorce sales are emotional. Here are some ways to ease the stress:
- Focus on the end goal: selling fairly so both parties can move forward.
- Involve children carefully: explain what’s happening in simple, supportive terms.
- Prepare early: declutter, gather mortgage and title documents, and agree on timelines before listing.
These small steps can reduce tension and help the sale go more smoothly.
Common Questions
Can we sell our house before the divorce is final?
Yes, if both parties agree. Otherwise, you’ll need a court order.
What if my spouse refuses to sell?
The court can order a sale and divide the proceeds if the home is community property.
Who pays the mortgage while the home is listed?
This depends on your agreement or court ruling. Often, costs are shared or paid by the spouse still living in the home.
What if the home has little or no equity?
You may consider renting it temporarily, negotiating a buyout, or exploring short-sale options.
Do I need a divorce-specific real estate attorney?
Not always, but consulting one can help if disagreements are likely.
Protect Yourself During the Sale
- Always use escrow and a licensed title company.
- Require proof of funds from buyers.
- Avoid pressure to sign non-standard contracts.
- Make sure both spouses receive the same updates at the same time.
Ready to Sell During Divorce?
At John Medina Buys Houses, we understand the stress of selling a property during divorce. Whether you need a fast, as-is cash offer or want guidance on listing your home, we’re here to help you move forward fairly and quickly.
Contact us today for a confidential, no-obligation consultation and see how we can help you sell your house during a California divorce.
Contact Form
Resources To Help You Sell A House In California
Give Us A Call at (310) 928-9688
How to Sell Your Home During a California Divorce: Step-by-Step
If you need to Sell your house fast in California, we promise to make you a fair, no-obligation, no-hassle offer. Take it or leave it. You’ve got nothing to lose. Do you still have questions?
Calling us could be the best decision you make all week!
Call Us Now at (310) 928-9688🙂
