Once the big decisions about the marital home are made, a new set of questions begins: what comes next, and what will it cost? Rudy hears these five most often from people in San Diego County planning their next home after a divorce, whether that means staying put, moving to something smaller or starting over in another part of the county.
The figures below come from Zillow and Freddie Mac, each with its date. They describe the wider market rather than your home, and your attorney, tax professional and lender should confirm how any of it applies to you.
1. Is it cheaper to keep the house or to buy something new?
Three things usually decide it: the property tax base, the size of the loan and the size of the home. Keeping the house generally keeps its tax base, because California excludes transfers between spouses under a settlement or judgment from reassessment. On a home owned for many years, that base can sit well below today's market value.
The loan narrows the difference. Keeping the house usually means refinancing into your own name, and buying means a new purchase loan, so either way the rate is set near today's market: Freddie Mac's survey put the 30-year average at 7.32% in the week of October 22, 2026, up from 6.19% a year before. What differs is the balance, since a refinance that also pays out your former spouse's share can end up larger than the loan on a smaller home.
Buying new resets the tax base at the purchase price, but it lets you choose the size and the monthly cost from scratch. The Divorce Home Buyout Calculator puts keeping and selling side by side, and Rudy can add a specific next home to the comparison.
Go deeper: Stay or move after a divorce · Divorce Home Buyout Calculator
2. What happens to property tax when a home changes hands?
California builds property tax on the purchase price. When you buy, the home's taxable value resets to what you paid, and under Proposition 13 it can then rise by at most 2% a year. The base tax is 1% of that value, plus voter-approved charges and any special taxes such as Mello-Roos, which the 2% cap does not limit.
For a first estimate, Rudy's calculators assume tax of about 1.1% of the price each year. A purchase at $875,335, Zillow's typical single-family value in ZIP 91910 in Chula Vista as of September 2026, would start near $9,629 a year, or about $802 a month. After closing, the county also sends one or two supplemental bills for the months since the sale, so it helps to keep some cash aside for them.
Two housekeeping steps help. If you had the $7,000 homeowners' exemption on the home you are leaving, tell the assessor you no longer claim it there, and file a new claim (Form BOE-266) on the home you buy and live in. When the old home sells, escrow prorates its current tax bill between seller and buyer by the closing date.
Go deeper: Property tax when a divorce home is sold · Divorce and home glossary
Want answers for your own move? The four-question Home Strategy Quiz takes about a minute, and Rudy reads every answer himself.
3. Should my next home be smaller, and what does downsizing save?
Often the next home is smaller, and the savings reach past the price. In ZIP 91910, Zillow's typical condo value was $550,136 as of September 2026, against $875,335 for a single-family home, a gap of about $325,199. At the same 1.1% first estimate, the condo value's property tax would be about $6,051 a year, roughly $3,578 less. In ZIP 91915 (Otay Ranch) the typical values were $681,017 for a condo and $941,161 for a single-family home.
Condos and townhomes come with HOA dues, though, and some newer communities carry Mello-Roos special taxes. Before you write an offer, ask for the dues, a recent reserve study and the district's Notice of Special Tax, so a lower price is weighed against the full monthly cost.
The Home Values map colors each San Diego County ZIP code by typical value, rent and yearly change, a quick way to see where a smaller home could fit the new budget.
Go deeper: HOA dues and Mello-Roos explained · Home values map by ZIP code
4. How do I build a budget for one household?
Work in two directions at once: the cash you expect after the settlement, and a monthly amount you are comfortable carrying. As an example, ZIP 91913 in Chula Vista had a typical value of $901,432 as of September 2026, per Zillow. Putting 10% down, about $90,143, and using Freddie Mac's 7.32% average interest rate (not an APR) from the week of October 22, 2026, the loan payment is about $5,573 a month in principal and interest over 360 monthly payments. Property tax at 1.1% and insurance at 0.3% of the price a year bring the total to about $6,625, before HOA dues and the mortgage insurance most loans with under 20% down carry.
If support is part of your income, ask your lender how it will be counted and for how long. Then list the costs of running a household on your own, which are easy to leave out:
- Down payment and closing costs, from your share of the proceeds or your savings
- Principal, interest, property tax and insurance
- HOA dues and any special taxes such as Mello-Roos
- Utilities, upkeep, moving and furnishing
- A cash reserve, including room for a supplemental property tax bill after closing
Go deeper: Down Payment Savings Planner · Compare Two Homes
5. Can my share of the sale go toward the next home, and will I owe tax on it?
Often it can. When the marital home sells, the title company pays off the loan and holds the proceeds as your agreement says, and the escrow officer prepares a statement showing each line for both spouses. That statement and the settlement are the paper trail a lender will want for a down payment, so it helps to share them early. Your attorney can tell you when your share can be released.
On taxes, federal rules let a single filer exclude up to $250,000 of gain on the sale of a main home, and married couples filing jointly up to $500,000, generally when the home was owned and used as a main home for at least 2 of the 5 years before the sale. How you file in the year of the sale and how your basis is figured are questions for your tax professional.
The Home Sale Gain and Tax Exclusion Estimator gives a rough picture to bring to that conversation.
Go deeper: Home Sale Gain and Tax Exclusion Estimator · Selling a home during a divorce
Have a question that is not on the list?
Planning the next home is easier when the numbers are in one place. Rudy can prepare figures for the home you are leaving and the one you are considering, and he coordinates with your attorney and lender rather than stepping into their roles. The page offers general information only; it is not financial, legal or tax advice.
Sources: Zillow Research: home value data; Freddie Mac: Primary Mortgage Market Survey; California State Board of Equalization: Property Tax Rule 462.220, change in ownership; California State Board of Equalization: homeowners' exemption; IRS Topic 701: Sale of your home. Market figures are dated where they appear and describe the past, not the future.
Keep exploring
- Home Strategy Quiz for San Diego County — Take the Home Strategy Quiz: four quick questions about buying or selling in San Diego County, answered personally by Rudy Flores, Realtor® at...
- Divorce and Your Home: Frequently Asked Questions — Short, honest answers to the questions people ask most when a marriage ends and a house is involved.
- Home Buying and Selling Calculators — Mortgage payment, affordability, rent vs buy, closing cost, property tax, refinance, moving cost, ADU return and seller net proceeds calculators...
- Home Guides: Practical Know-How for San Diego Buyers and Sellers — Practical guides, printable checklists and market insight for people buying, selling or moving in San Diego County.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Point Mortgage Corporation (NMLS #231073), at (619) 475-4095. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
General information, not financial, legal or tax advice. Every situation is different, so confirm the details for your own purchase.