Legal Question in Real Estate Law in California

In a dissolution of marriage in California, the judge's duty is to (1) make sure the assets and the liabilities of the divorcing couple are divided as equally as possible, but also (2) to modify this equal-division formula to the extent the divorcing couple is able to agree to a not-so-equal split of the community assets and liabilities. The "assets" to be divided would include the home, and the "liabilities" would include the loan.

Taking a co-borrower's name off a loan will require either refinancing with a new loan or a modification to the existing loan. The latter possibility should be discussed with the holder of the note; it may not be as difficult or expensive as one might think; however, now is also a very good time to refinance (at least for most properties). Also, if you have been married for 26 years, there's a good possibility you have a substantial amount of equity.

Most California counties have very helpful counseling services connected with their Family Law court departments that can provide practical suggestions based on the numbers in each situation, which may be a better resource than general answers based on legal theory.

The judge can order him to, but if he does not qualify the judge can't make him. Therefore it is a good idea to prequalify the buying spouse based on post-divorce numbers and put detailed terms and timelines about what APR etc. the loan will be made under. So that the buying spouse can be held in contempt if they then fail to refi on the agreed terms or better.