Does moving out during a divorce mean giving up home equity?

People often have a lot of questions about their rights during divorce. They want to set themselves up for the best future possible after leaving an unsatisfactory marriage. Securing a reasonable outcome to property division proceedings is crucial to the future comfort and stability of those going through a divorce.

Spouses tend to focus the most on the assets that carry the highest overall value. For many couples, the home where they live together is the most valuable possession that they share. They may have saved tens of thousands of dollars for a down payment initially and may have spent years making payments to reduce the principal balance due on the mortgage. The thought of losing that equity is a frightening prospect. Spouses are often willing to go to great lengths to preserve their interest in their marital home.

Does moving out in the early stages of the divorce process eliminate one spouse’s interests in their marital home and deprive them of their share of home equity?

Leaving does not sever the ties to the home

Some people warn others that leaving the marital home could constitute abandonment. However, to abandon the home, people have to stop assisting with its upkeep and paying toward its maintenance. Even those who move out typically have a right to their share of the accumulated equity in the home when they divorce.

So long as there is a clear record of using marital funds to purchase and pay for the home, it is part of the marital estate. The equity is subject to division. Typically, financial records are the only real requirement to establish one spouse’s right to a share of home equity.

Proof that marital income went toward the purchase and maintenance of the home makes the equity subject to division in the divorce. Current living arrangements do not alter the financial interest that both spouses have in the marital home.

Learning more about how community property rules can affect asset division can help those who feel anxious about their finances and the future during a divorce. Even those who leave their marital home can typically receive a share of equity or other assets worth a comparable amount at the end of the divorce process.