Selling the family residence immediately is not the only possible outcome when a home must ultimately be divided in a California divorce. In certain cases involving children, the family court may temporarily postpone the sale and award one parent exclusive use and possession of the residence. This is known as a deferred sale of home order. The purpose is to minimize the adverse effects that the divorce and an immediate move could have on the children, but California imposes specific requirements before such an order may be made.

Who Can Receive a Deferred Sale of Home Order?

A deferred sale order temporarily delays selling the family home.

The parent receiving temporary exclusive use and possession must have sole or joint physical custody of at least one qualifying child. This can include a minor child and, in certain circumstances, an older child for whom California law continues to authorize parental support.

The existence of children does not automatically mean the sale will be postponed.

The court must first determine whether maintaining the home during the proposed deferred-sale period is economically feasible. That analysis includes the ability to make the mortgage, property tax, and insurance payments and maintain the property in a condition comparable to its condition at trial.

If maintaining the residence is not economically feasible, the court must deny the request.

This prevents a deferred sale from being ordered when postponing the sale would create an unsustainable financial arrangement.

The Court Must Consider the Effect on the Children

If maintaining the home is economically feasible, the court then considers whether delaying the sale is appropriate based on the circumstances identified by California law.

The central purpose is minimizing the adverse impact of the marital proceeding on the children.

The court may consider how long the child has lived in the residence, the child’s placement in school, and whether the home has been modified to accommodate a child’s physical disabilities.

Other relevant circumstances include the emotional impact of moving, the location of the parents’ residences, the ability of the parent remaining in the home to maintain it, and the financial consequences of postponing the sale.

Tax consequences must also be considered.

If the court concludes after considering the required circumstances that a deferred sale is necessary to minimize the adverse impact on the children, it may enter the order and specify how long the sale will be postponed.

Postponing the Sale Does Not Resolve Every Financial Issue

A deferred sale order changes when the residence will be sold; it does not make the underlying ownership and financial issues disappear.

The order may address responsibility for mortgage payments, property taxes, homeowner’s insurance, maintenance, and improvements during the deferred-sale period.

The court must also retain jurisdiction to resolve issues that later arise concerning the order, including matters involving maintenance or tax consequences.

Exclusive use of the residence can have additional financial significance. Housing expenses and the value of occupying the home may affect other issues in the case depending on the circumstances.

The ultimate sale also requires attention to title and the parties’ respective property interests.

A deferred sale should therefore be understood as a temporary arrangement designed to address the family’s circumstances while preserving the property issues that will ultimately have to be resolved.

A Deferred Sale Can Postpone Selling the Home When the Children’s Circumstances Justify It

California family courts may temporarily delay the sale of a family residence when the statutory requirements are satisfied and doing so is necessary to minimize the adverse effects of the divorce on qualifying children. The court must first determine that maintaining the home is economically feasible and then evaluate the required circumstances concerning the children and the property. A deferred sale postpones the disposition of the residence rather than permanently awarding the entire home to the parent who remains there.