Often a client will want to keep encumbered community real estate for sentimental or investment reasons. However, this decision must be dispassionately assessed and made based on sound economics. Buying out the other party results in a cash payment, literally money in the bank, for the other party. The holder of the property has the potential for an increase in value, but, of course, there is no guarantee the value will appreciate.  If a client simply cannot afford to assume additional debt, the asset should be sold and the proceeds divided, despite a desire to retain the property.


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