Real property in a California divorce schedule

Inventory the whole position

• Property address and type, including out-of-state and partial interests.
• Vesting deed and acquisition date.
• Current valuation source and effective date.
• Every mortgage, credit line, tax lien and other encumbrance tied to the property.
• Down-payment, principal-reduction and improvement claims supported by records.

Do not double-count secured debt

FL-142 places an amount owed against an asset in the asset section. Repeating the same mortgage in the unsecured-debt section reduces the estate twice. A clean ledger preserves gross value, encumbrance and net equity as separate columns.

An award needs mechanics

A buyout requires more than an equity calculation. The agreement should address valuation date, refinance or assumption, deadlines, carrying costs, repairs, possession, failed-refinance consequences, listing and sale procedures, and documents needed to transfer title.

Transfers incident to divorce may fall within the federal nonrecognition rule in 26 U.S.C. section 1041, but carryover basis and a later sale can still matter to the bargain.

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