When one spouse wants to keep the family home in a California divorce, the question is almost always the same: how much do I have to pay the other person to buy out their interest? The buyout is their share of the home's equity, adjusted for any separate-property each spouse is entitled to recover first. This calculator estimates the buyout amount and the refinance the staying spouse would likely need. California is a community-property state, so absent an agreement the community equity is divided equally (Family Code §2550) — but separate-property reimbursements under §2640, Moore/Marsden apportionment, and Watts/Epstein credits can shift the numbers meaningfully.

Direct AnswerA California divorce home buyout is the departing spouse's share of the home's equity. Take current value minus the mortgage to get equity, subtract any traceable Family Code §2640 separate-property reimbursements owed back to each spouse, then split the remaining community equity (usually 50/50). The staying spouse pays the other their share — typically by refinancing into a new solo loan roughly equal to the old mortgage plus the buyout.
General information only. Not legal, tax, or financial advice.

The buyout math, step by step

A clean buyout follows a predictable order of operations:

  1. Equity. Current agreed value minus the mortgage balance (and any other liens).
  2. Optional cost-of-sale credit. Some settlements reduce equity by a hypothetical commission and closing cost (often 6–8%) because the leaving spouse would have netted less in an actual sale. This is negotiable, not automatic.
  3. Separate-property reimbursements (§2640). A spouse who can trace a separate-property contribution — a pre-marriage down payment, an inheritance, a gift used to buy or improve the home — recovers that amount (without interest) off the top.
  4. Divide the community equity. What remains is community property, divided by the agreed share (50/50 by default under §2550).
  5. Buyout. The staying spouse pays the leaving spouse their §2640 reimbursement plus their community share. The staying spouse usually refinances; the new loan is roughly the old mortgage plus the buyout.

Try the divorce buyout calculator

Enter your numbers below. "You" is the spouse keeping the home; "they" is the spouse being bought out. The calculator runs entirely in your browser — nothing is saved or transmitted.

Estimate only. Does not model Moore/Marsden apportionment, Watts/Epstein credits, tax, or your lender's qualifying. Confirm every figure with your family-law attorney. Not legal, tax, or financial advice.

A worked example: $850,000 home, $400,000 mortgage, 50/50

A couple owns a Simi Valley home now worth $850,000 with a $400,000 mortgage. No separate-property contributions, no cost-of-sale credit, equal 50/50 division. Equity is $450,000. Community equity is the full $450,000. The departing spouse's share is $225,000 — that is the buyout. To pay it and remove the ex from the loan, the staying spouse refinances into a new loan of about $400,000 + $225,000 = $625,000, a 74% loan-to-value on the $850,000 home, and must qualify for that loan on their income alone.

Now change one fact: the staying spouse made the original $120,000 down payment from a pre-marriage inheritance and can trace it. Under §2640 they recover that $120,000 off the top. Community equity drops to $330,000, the departing spouse's share falls to $165,000, and the buyout (no separate property of their own) is $165,000 — a $60,000 difference driven entirely by one documented reimbursement.

The rules that move the numbers

Family Code §2640 reimbursement. The most common adjustment. A spouse recovers traceable separate-property contributions to the down payment, principal paydown, or capital improvements — without interest and without a share of appreciation on that contribution. The key word is traceable: you need documentation (bank statements, gift letters, escrow records) showing the separate funds flowing into the home.

Moore/Marsden apportionment. When the home was one spouse's separate property before marriage but the mortgage was paid down with community earnings during marriage, the community acquires a pro-rata interest in the appreciation. The formula is technical and almost always needs a family-law attorney or forensic accountant; this calculator does not attempt it.

Watts and Epstein credits. After the date of separation, a Watts charge can require the spouse living in the home to reimburse the community for the reasonable rental value of their exclusive use. An Epstein credit reimburses a spouse who kept paying community debts (the mortgage) from post-separation separate funds. Both adjust the final settlement and are decided case by case.

The refinance reality. A buyout on paper means nothing if the staying spouse cannot refinance. Lenders qualify that spouse on their income alone, and a divorce decree alone does not remove someone from a mortgage — only a refinance or loan assumption does. Some couples use a "deferred sale of home" order (a Duke order) to let children finish school before selling, which postpones the buyout-or-sell decision.

Keep the house, or sell and split?

The calculator answers "how much to keep it," but the harder question is whether keeping it is wise. Run three honest checks: (1) Can you refinance and carry the new payment on one income at today's 6.5–7.0% rates? (2) Is the equity you would be buying tied up in an asset you cannot easily diversify, versus a clean cash split from a sale? (3) What is the home actually worth — a buyout based on an optimistic value overpays the departing spouse, while a low value shortchanges them. An independent valuation protects both sides.

When a sale is the better path, doing it cooperatively — neutral agent, agreed list price, shared net sheet — almost always nets both spouses more than a contested, court-supervised sale.

Frequently Asked Questions

How is a house buyout calculated in a California divorce?

Current value minus mortgage equals equity. Subtract any §2640 separate-property reimbursements, divide the remaining community equity (usually 50/50), and the staying spouse pays the other their share — the buyout. The staying spouse typically refinances into a loan roughly equal to the old mortgage plus the buyout.

What is a Family Code 2640 reimbursement?

It lets a spouse recover, without interest, traceable separate-property contributions to the acquisition or improvement of community property — such as a pre-marriage down payment. It comes off the top before dividing community equity, and requires documentation tracing the funds.

What is the Moore/Marsden rule?

When a separate-property home's mortgage was paid down with community funds during marriage, Moore/Marsden gives the community a pro-rata share of the appreciation during marriage. It is a technical, fact-specific calculation usually handled by an attorney or forensic accountant.

What are Watts and Epstein credits?

A Watts charge reimburses the community for one spouse's exclusive use of the home after separation; an Epstein credit reimburses a spouse who paid community debts from post-separation separate funds. Both are decided case by case.

Is a cost-of-sale credit applied to a buyout?

Sometimes. Some agreements reduce equity by a hypothetical 6–8% cost of sale before dividing, reasoning the leaving spouse would have netted less in a real sale. It is negotiable and varies by case and judge.

Do I have to refinance to buy out my spouse?

Usually — to remove the other spouse from the loan and raise cash for the buyout. The lender qualifies the staying spouse on their income alone. Alternatives include offsetting against other assets, a note over time, or selling.

Primary sourcesCA Family Code §2640 (reimbursement), §2550 (equal division), California Courts — Divorce Self-Help. This page is general information, not legal, tax, or financial advice. Consult a licensed California family-law attorney.

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