For many families, their home is their most valuable asset, both financially and emotionally. For families navigating a divorce, determining the future of the family home requires a careful assessment of the financial, practical, and personal factors that are involved.

Washington is a community property state, meaning property acquired during the marriage that was not received by gift or inheritance, and not purchased with separate funds, is considered community property. Either spouse acting alone may manage and control community property, with a like power of disposition as the acting spouse has over his or her separate property. In many cases, a family home that was purchased during the marriage is considered community property and is subject to equitable division in any divorce.

If a family home was acquired prior to the marriage or purchased with funds that were gifted by a family member to one spouse, the home might be characterized as part-community, part-separate property, or as entirely separate property depending on the facts and circumstances. This is often not a clear-cut distinction and can be even more complicated when families have lived in a home for many years.

Even if a spouse owned a home prior to marriage, the other spouse may have contributed to the home by making mortgage payments, or making repairs or renovations often referred to as “sweat equity.” When community labor or funds are contributed to a separate property home, a court might find that there is a claim to the home, potentially changing its character to partial — or entirely — community property. The court may also find that there is a community lien and a right of reimbursement for any community contributions to separate real property during the marriage.

Diving into the details, here are a few frequently used methods for the division of the family residence in divorce:

One Spouse is Awarded the Home: In one situation, one spouse may be awarded the home, with the other bought out of their equity and awarded an equivalent amount of other available community assets, such as a disproportionate award of retirement or investment accounts. If there are insufficient community funds to be divided to make an equivalent split, the spouse who is awarded the home can make an equalizing payment, sometimes paid over time to the other spouse to compensate them for their interest.

Awarding the home to one spouse is favored, especially where there are young children who need stability. If there is a dispute over the family home and it is financially feasible, the court will likely award the home to the parent with the majority of the residential time with the children.

If you are considering this option keep in mind that maintaining a home is expensive, often with a mortgage, maintenance, and property taxes. This burden can be lessened through an award of spousal support or alimony to the spouse who earns less and may have been awarded the home. Having financial support in place can help make remaining in the home more affordable.

Sell the Home: This is common when families divorce. Selling the home can be the best option for a changing family, especially if there are insufficient assets to award to the other spouse. Selling the home and dividing the net proceeds between the two parties is often the only way to equitably divide the community estate. It is also sometimes necessary to allow parties to downsize and start fresh in new spaces.

In this scenario, it can be beneficial to work together with all parties involved to execute a home sale agreement. This agreement will include detailed provisions around the sale of the home, such as how the parties will prepare the home to be put on the market, who will stay in the home while it is for sale, who the real estate agent or broker will be who sells the home, and how the parties will handle offers that come in. Agreements like this can help address potential areas of conflict during the process and address them before they pop up and potentially impede a sale.

Delay the Sale of the Home: This is another option that is favored among families going through a divorce. Delaying the sale of a home and including a timeline for a future sale in a final settlement is also often a good solution. This is true for families with children, or if it is not a good time to sell for any other reason. Many families with children will wait until a child goes off to college, then the home will be listed for sale. This is the case even if it is after a final divorce decree has been finalized and entered with the court to conclude the marriage.

Also, Consider an Appraisal: Depending on where you are in the process of a divorce, having your home appraised by a licensed appraiser can help you determine the precise value of your home, ensuring that its value is properly credited in the division of the marital assets. Often the values listed on websites such as Zillow or Redfin can be good starting points for the value of a home, but the opinion of a professional is always preferred.

There is no one-size-fits-all solution to the division of assets in a divorce, including what to do with the family home. Working with knowledgeable professionals such as a family law attorney and real estate broker or agent can help you to understand your rights, assess your options, and ensure that you are working towards a resolution that protects your financial interests and your family’s future. If you have questions about this or other topics related to the division of real property during the process of divorce, the Family Law Practice Group at Lasher is available to assist.