A new law in California that went into effect on January 1, 2023 makes it easier for divorcing couples to split real estate. The law, known as the "Dividing Real Estate in Divorce Act," creates a presumption that real estate held by divorcing couples as community property should be sold and the proceeds divided equally.
However, the law also allows divorcing couples to agree to a different division of their real estate, such as one spouse keeping the home and the other spouse being compensated for their share of the equity. The law also allows divorcing couples to keep their real estate joint ownership after the divorce, but this must be done with the consent of both spouses.
The new law is intended to make the process of dividing real estate in divorce more efficient and fair. The law is also expected to reduce the number of divorces that end up in court, as it will make it easier for couples to reach an agreement on their own.
How the New Law Affects Divorcing Couples
The new law has a number of implications for divorcing couples. First, it creates a presumption that real estate held by divorcing couples as community property should be sold and the proceeds divided equally. This means that the court will start with the assumption that the fairest way to divide the real estate is to sell it and split the proceeds. However, the court can deviate from this presumption if there are good reasons to do so.
Second, the new law allows divorcing couples to agree to a different division of their real estate, such as one spouse keeping the home and the other spouse being compensated for their share of the equity. This means that divorcing couples have a lot of flexibility in how they divide their real estate. They can reach an agreement that works best for their individual needs and goals.
Third, the new law allows divorcing couples to keep their real estate joint ownership after the divorce. This can be a good option for couples who want to keep their home as an investment or who want to continue to co-parent their children in the home. However, it is important to note that both spouses must agree to keep the real estate joint ownership. If one spouse does not agree, the real estate will have to be sold and the proceeds divided equally.
How Family Law Attorneys Can Help
Family law attorneys can help divorcing couples in a number of ways with the new law. First, they can help clients understand the provisions of the law and how it applies to their specific situation. Second, they can help clients develop a plan for dividing their real estate that meets their individual needs and goals. Third, they can negotiate divorce settlements that comply with the new law and that are fair and equitable. Fourth, they can advocate for clients' interests in court if necessary.
Here are some specific examples of how family law attorneys can help divorcing couples with the new law:
Educate clients about the new law. Family law attorneys should help their clients understand the provisions of the new law and how it applies to their specific situation. This includes explaining the presumption that real estate held by divorcing couples as community property should be sold and the proceeds divided equally, as well as the exceptions to this presumption.
Help clients develop a plan for dividing their real estate. Family law attorneys can help their clients develop a plan for dividing their real estate that meets their individual needs and goals. This may include considering factors such as the financial situation of each spouse, the needs of any children, and the future plans of each spouse.
Negotiate divorce settlements that comply with the new law. Family law attorneys can help their clients negotiate divorce settlements that comply with the new law and that are fair and equitable. This includes negotiating the division of real estate assets and debts.
Advocate for clients' interests in court. If necessary, family law attorneys can advocate for their clients' interests in court to ensure that they receive a fair and equitable division of their real estate. This may include arguing for or against the sale of real estate, or arguing for a different division of the proceeds from the sale of real estate.
Family law attorneys can play a vital role in helping divorcing couples navigate the new law. Family law attorneys can educate clients about the law, help them develop a plan for dividing their real estate, negotiate divorce settlements that comply with the law, and advocate for clients' interests in court if necessary.
Additional Thoughts
Here are some additional thoughts on how family law attorneys can use the new law
Use the law to help clients avoid litigation. The new law is designed to make it easier for divorcing couples to reach agreements on their own, without having to go to court. Family law attorneys can help their clients understand the new law and use it to negotiate fair and equitable agreements.
Use the law to help clients who are in financial distress. The new law allows divorcing couples to keep their real estate joint ownership after the divorce. This can be a good option for couples who are struggling to make ends meet and cannot afford to sell their home. Family law attorneys can help their clients explore this option and determine whether it is right for them.
Use the law to help clients who are facing foreclosure. If a divorcing couple is facing foreclosure on their home, the new law may allow them to delay the foreclosure proceedings while they negotiate a divorce settlement. This can give couples more time to reach an agreement and avoid losing their home. Family law attorneys can help their clients understand this option and explore whether it is right for them.
Use the law to help clients who have children. The new law requires courts to consider the best interests of any children when dividing real estate assets in a divorce. This means that courts will take into account factors such as the needs of the children, the children's relationship with each parent, and the children's preferences when making decisions about real estate division. Family law attorneys can help their clients understand this process and advocate for the best interests of their children.
Overall, the new law in California that makes it easier for divorcing couples to split real estate is a positive development. The law is intended to make the process of dividing real estate in divorce more efficient and fair, and it is expected to reduce the number of divorces that end up in court. Family law attorneys can play a vital role in helping divorcing couples navigate the new law and protect their rights and interests.
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