What Happens to the Second Home in a California Divorce?
Many California residents have second homes, and these properties often become important in the event of a divorce. According to one report, there were roughly 7.5 million second homes throughout the nation in 2018 – suggesting that only a few Americans have the privilege of owning such properties. Often, these are vacation homes that families enjoy during summer or winter holidays. Families may keep them in California, another state, or even another nation. What happens to them when the marriage comes to an end?
The Difference Between Separate and Community Property in California
In the event of a divorce, property division revolves around the distinction between community and separate property in California. If a spouse owns something prior to the marriage, this is typically defined as separate property. It is called “separate” because it is excluded from the property division process. In other words, that spouse gets to keep their separate property after the divorce has been resolved. Community property, on the other hand, must be divided by both spouses in an equal manner during divorce. This is generally property that was acquired during the marriage.
If a spouse owned their vacation home prior to the marriage, they will likely not have to divide it during divorce. The same logic applies to vacation homes that were inherited by one party, as inheritance also falls under the category of separate property. In addition, any property that is received as a gift by one spouse is considered separate. There is also one other possible reason that a vacation home might be considered separate property, and that is if the residence was acquired after the date of separation. For example, a spouse might move out of the family home and immediately purchase a new one to live in. This would also be classified as separate property.
Vacation Homes and High-Net-Worth Spouses
Second Homes are typically associated with high-net-worth spouses. After all, many Americans today cannot even afford to buy a single apartment, and multiple real estate properties imply a high level of income, wealth, or both. These kinds of divorces are much more likely to be resolved through prenuptial agreements, mediation, collaborative law, or some other type of alternative dispute resolution.
In other words, the way in which the second home is handled does not necessarily need to follow the rules set out by the court. Even if the home is classified as separate or community property, it may not be treated as such during these alternative dispute resolution processes. For example, one spouse might wish to “trade” the second home for some other kind of benefit, including access to retirement assets or investments.
Where Can I Find an Experienced Family Law Attorney in California?
If you have been searching for a qualified, experienced family law attorney in California, look no further than the Knez Law Firm. Over the years, we have helped numerous families approach the property division process with a measure of confidence and efficiency. While second homes may cause confusion and disputes among couples, both parties can pursue a positive outcome with the right legal assistance. Book your consultation today to learn more.
Andrew J. Knez earned his Bachelor of Arts degrees in Political Science and Criminal Justice from California State University, Fullerton. During his college years, he was a member of the Pi Kappa Phi Fraternity and interned at the College Legal Clinic, where he assisted underprivileged communities in obtaining affordable legal services. Mr. Knez credits this experience with fostering his appreciation for the law and its positive impact on society. Additionally, during college, Mr. Knez worked as a paralegal, gaining hands-on experience in civil litigation. Learn more here.