Facing Divorce? We Can Help – Sell Your Home to Us for Cash

Yes, in most cases, both spouses must agree to sell the home during a divorce unless the court orders otherwise. Under California law, which is a community property state, any property acquired during the marriage is typically considered jointly owned. That means decisions regarding the sale or disposition of that property must be made jointly, unless one spouse has been granted exclusive control over the home through a court order.

If one spouse wants to sell but the other refuses, it can create a legal standoff. In that case, the issue is usually brought before a family court judge. The court can either order the property to be sold and the proceeds divided equitably, or it can assign the home to one party (usually with an offset in value through other marital assets).

At Friendly Offer, we’ve worked with many divorcing couples in California and can coordinate with both parties or their attorneys to ensure everything is handled fairly. If you’re in this situation, we always recommend consulting your divorce attorney before signing any sales agreement, but we’re happy to work with both sides in a neutral, respectful way.

Yes, you can sell your house before the divorce is finalized, but it’s essential to approach it carefully. In California, the moment a divorce is filed and served, Automatic Temporary Restraining Orders (ATROs) go into effect under Family Code §2040. These ATROs prohibit either spouse from transferring, selling, or encumbering community property—including the marital home—without the written consent of the other spouse or a court order.

That means you can’t just list or sell the property unilaterally once the divorce is underway. However, if both parties agree and provide written consent, you can absolutely proceed with a sale prior to the final judgment. Many couples choose to do this in order to simplify the property division process and move forward more cleanly.

At Friendly Offer, we can assist in pre-divorce sales as long as we have written confirmation from both parties, and we’re happy to coordinate with your attorneys or mediator to ensure the sale complies with ATRO requirements and court expectations. This page is meant to help you understand the process but your attorney will be able to give actual advice based on your specific situation. We are more than happy to speak with them and make sure our cash offer complies with the terms of your divorce proceedings!

If you and your spouse sell the house during a divorce, the mortgage is typically paid off at closing using the proceeds from the sale. This is true regardless of whose name is on the loan or the title—California treats most mortgages on community property as shared debts.

After the mortgage and any other liens (like home equity loans or unpaid property taxes) are paid off, the remaining proceeds are generally split between the two parties as part of the divorce settlement. If you’ve already agreed on a 50/50 division or another arrangement, that’s what’s followed. If not, the funds might be held in escrow or by an attorney until the court makes a final ruling.

One common mistake we see is homeowners who assume they’ll walk away with a certain amount of cash, only to discover that mortgage payoff amounts, commissions, and closing costs eat into their share. With Friendly Offer, we pay cash and cover all standard closing costs, so there are fewer surprises. We also offer clear breakdowns of estimated proceeds, so you and your spouse can plan accordingly.

If your spouse refuses to cooperate, it doesn’t necessarily mean you’re stuck. California courts recognize that marital property often needs to be liquidated, especially when both parties are moving on and can’t afford to maintain the home alone.

You can petition the family court for an order to force the sale of the home. This is typically done through a motion during divorce proceedings. The court will consider factors such as the financial situation of both spouses, the best interest of any children living in the home, and whether one party is acting in bad faith by delaying or blocking the sale.

In some cases, a court-appointed referee or receiver may be brought in to handle the sale if the couple cannot work together at all. This can get costly and complicated.

That’s why many of our clients choose to sell to Friendly Offer before things get to that point. We’re experienced in working with uncooperative spouses and legal teams. If one spouse is difficult, we can help by working through neutral third parties, mediators, or attorneys to keep the process professional and moving forward.

When you sell your house during a divorce, the tax implications depend on several factors, including whether the property is your primary residence and how long you’ve lived in it. Fortunately, under federal IRS rules and California state law, you may qualify for the capital gains exclusion—even if you’re in the middle of a divorce.

If you and your spouse have lived in the home for at least two of the past five years before the sale, you can typically exclude up to $500,000 in capital gains (for married couples filing jointly). If you’re selling the home individually and meet the two-year rule yourself, you can exclude up to $250,000.

In divorce situations, special rules apply. You may still be eligible for the exclusion even if one spouse has moved out, as long as other conditions are met. However, if the home was used as a rental or an investment property, different rules may apply—and capital gains taxes may be due.

We always recommend speaking with a tax advisor or divorce attorney before finalizing a sale and to confirm the information here is applicable to your particular divorce and situation. When you work with Friendly Offer, we’ll give you all the documents and closing paperwork you need to share with your accountant or attorney so you can make informed decisions.