Selling a House During a Divorce in Ventura County

Quick answer: When a couple divorces in Ventura County, the home is usually sold and the proceeds split, bought out by one spouse, or kept jointly for a set time. Once divorce papers are filed and served, California's automatic restraining orders mean neither spouse can sell or borrow against the home without the other's written consent or a court order. The smoothest sales happen when both spouses agree in writing on the agent, the price, and how the money is divided before the home goes on the market.

We know this is a hard time. Our job is to make the home part simple, fair, and clear for both of you. Here's how it works.

Your Three Main Options

• Sell and split the proceeds. The most common choice. The home is sold, the loan is paid off, and the remaining money is divided according to your agreement or a court order.
• One spouse buys out the other. One of you keeps the home and pays the other their share, usually by refinancing into their own name.
• Keep it jointly for a while. Some couples agree to keep the home for a set period and sell later. Put the details in writing: who lives there, who pays what, and when it will be sold.

Can You Sell Before the Divorce Is Final?

Yes, but both of you need to be on board. Under California Family Code section 2040, automatic temporary restraining orders take effect once the divorce petition is filed and served. They bar either spouse from selling, transferring, or borrowing against community property, including the home, without the other spouse's written consent or a court order. These orders stay in place until the divorce is final or a judge changes them.

If you both agree to sell, your attorneys can put that agreement in writing. If one spouse won't agree, the other can ask the court for an order allowing the sale. Talk with your family law attorney before you sign a listing agreement.

Agreeing on the Agent, the Price, and the Plan

Disagreements are what slow these sales down. Before listing, agree on:

• Which agent you'll use, and that the agent will keep both of you equally informed.
• The list price, and how you'll decide on price reductions and offers.
• Who pays for repairs or cleaning before the sale, and whether those costs come out of the proceeds.
• Who is responsible for the mortgage, taxes, and insurance until closing.

When we work with divorcing sellers, we send the same information to both spouses at the same time, and we put every offer in front of both of you. If you'd rather communicate through your attorneys, we'll do that too.

Keep the Mortgage Paid

The restraining orders bind the two of you, not your lender. If payments stop, the lender can still start foreclosure, which hurts both of your credit and your sale price. If you can't agree on who pays in the meantime, ask the court for a temporary order before a missed payment becomes a crisis.

How the Money Gets Divided

At closing, escrow pays off the loan and selling costs first. The rest is divided according to your written instructions or a court order. If you haven't agreed on the split yet, the proceeds can often be held until you do. Your attorneys usually tell escrow exactly how to handle the funds.

To estimate what's left, start with a realistic sale price and subtract the loan payoff, commissions, escrow and title fees, and the Ventura County transfer tax of $1.10 per $1,000 of the sale price. Our cost-to-sell guide walks through each item.

If One Spouse Keeps the Home

• Refinancing. The spouse keeping the home usually refinances to remove the other spouse from the loan and to pull out cash for the buyout. Get pre-approved early so you know it will work.
• The deed. The departing spouse typically signs a deed transferring their interest. Your attorney or escrow will prepare it.
• Property taxes. In California, transfers between spouses, including transfers in a divorce settlement, are generally excluded from property tax reassessment, so the tax base usually stays the same. Confirm with the Ventura County Assessor.

Taxes on the Sale

A transfer of the home between spouses as part of a divorce generally isn't taxable (IRS Publication 523). When the home is sold to a buyer, each owner can generally exclude up to $250,000 of gain if they meet the IRS ownership and use tests, or up to $500,000 if you're still married and file a joint return. If one spouse moved out but the other was allowed to live there under the divorce or separation agreement, special rules may still let the spouse who moved out count that time. These rules are detailed, so talk with a CPA before you sell.

Moving Once

Each of you may also be buying or renting your next place. We can time the sale so neither of you is left without a place to live, including a short rent-back after closing if needed. See Buy first or sell first in Simi Valley?

Frequently Asked Questions

Do both spouses have to agree to sell the house during a divorce in California?
Generally, yes. After the divorce is filed and served, neither spouse can sell community property without the other's written consent or a court order. If one spouse refuses, the other can ask the court to allow the sale.

Who gets the money when a house is sold during a divorce?
Escrow pays the loan and selling costs, then divides what's left according to your written agreement or a court order. If you haven't agreed yet, the funds can often be held until you do.

Should we sell before or after the divorce is final?
It depends on your finances, taxes, and agreement. Some couples sell during the process to split cash; others wait. Ask your attorney and CPA which timing works best for you.

Will we owe capital gains tax?
Many sellers don't. Each owner can generally exclude up to $250,000 of gain if they meet the IRS tests, or $500,000 on a joint return. Longtime owners can exceed that, so ask a CPA.

Can one of us keep the house?
Yes. One spouse can buy out the other, usually by refinancing into their own name. In California the tax base usually stays the same for a transfer between spouses.

Related Articles

• How Much Does It Cost to Sell a House in Simi Valley?
• Selling a House As-Is in Simi Valley
• Buy First or Sell First in Simi Valley?
• Get Your Simi Valley Home Ready to Sell: 30-Day Checklist

Selling During a Divorce?

We'll give both of you the same clear numbers: what the home is worth and what you'd each walk away with. Confidential, and no pressure. Schedule a call or call or text 805-424-6226.

Sources

• California Family Code section 2040 (automatic temporary restraining orders).
• IRS Publication 523, "Selling Your Home" (transfers between spouses, home sale gain exclusion).
• California State Board of Equalization, change in ownership exclusions for transfers between spouses.
• Ventura County documentary transfer tax: $1.10 per $1,000 (CaliforniaCityFinance.com, rates effective December 1, 2025).

Steve Hise and Tricia Garcia, Real Estate Toolbox at eXp Realty
Steve Hise CA DRE #01702055 | Tricia Garcia CA DRE #02032007

This article is general information, not legal, tax, or financial advice. Talk with a family law attorney and a CPA about your situation.