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Will I Lose My Share of Our Home’s Equity in the Divorce if I Move Out?

Uncover the truth about home equity and property rights during a divorce in California. Learn why moving out doesn’t mean losing your share of the home’s equity.

Navigating Home Equity Concerns During Divorce in California Deciding to divorce is a challenging decision, one that you may have grappled with for a long time. The situation becomes even more complex when you consider the shared assets, like your home.

You might be contemplating moving out of your marital home due to the discomfort of living together during this period. However, a common concern among divorcing couples in California is whether moving out will result in a loss of claim to the home’s equity.

Rest assured, this is almost certainly not the case.

Here’s why: The majority of divorcing couples, about 95%, end up selling their marital home. The proceeds from the sale are then divided during the divorce proceedings. The court is unlikely to deprive you of your share of the proceeds, even if you moved out before the divorce was finalized.

So, if living together feels awkward, you can move out and proceed with the divorce. You’re likely to retain your share of the home’s equity.

However, a word of caution: Don’t delay filing for divorce after moving out. If you wait too long, say more than a year, your spouse might argue that you shouldn’t receive the equity accumulated over the last year as you didn’t contribute to the mortgage payments. This argument often holds up in court. So, it’s advisable to file for divorce within a few months of moving out.

Galen Gentry assists clients in Los Angeles and Southern California with divorce issues and explains the person’s rights and obligations in a divorce. Mr. Gentry has 30 years of experience and can help people to protect their interests. Call at (310) 282-7521 or contact us online by using the Orange form on the right of your screen to schedule a free consultation.