Tom Sandoval Refinanced the L.A. Home He Shares with Ex Ariana Madix Before Cheating Scandal

The pair purchased their $2 million property together and Sandoval later took out a home equity loan on it to finance his latest bar opening

Tom Sandoval and Ariana Madix's home had been a flash point in their relationship long before their split.

Earlier this month, news broke that Madix, 37, called off her nine-year relationship with Sandoval, 39, after it was revealed that he had been cheating with their Vanderpump Rules costar Raquel Leviss for the last six months of their relationship.

Madix and Sandoval share a home in L.A. together, and a source tells PEOPLE: "Right now, Tom and Ariana are still living in the same home, but sleeping in separate rooms. There's a lot to figure out with their living situation but no plans have been made yet." Madix is currently filming a movie, so she has been away from home as of late.

The home was previously at the center of some drama on the Bravo series, when it was revealed during an October 2021 episode that Sandoval had plans to take out a home equity loan in order to finance his new bar Schwartz and Sandy's that he owns with his costar Tom Schwartz.

Tom Sandoval and Ariana Madix of "Vanderpump Rules" attend Kyle Chan's Retail Store Opening at Kyle Chan Design on June 16, 2021 in Los Angeles, California
Tom Sandoval and Ariana Madix. Robin L Marshall/Getty

Lisa Vanderpump shared her concerns with Madix over how Sandoval's major financial decision might affect her.

"He's doing that loan, but it's only against his own equity. It doesn't affect me at all," Madix told Vanderpump during the season 9 episode. Vanderpump later pointed out that it can't just be "against his own equity" as the two are "joint co-owners" of the home.

Vanderpump Rules -- Season 10 Premiere Party -- Pictured: Lisa Vanderpump
Todd Williamson/Bravo via Getty

"I'm not sure that Ariana quite understands the concept of putting your house up as collateral," Vanderpump said. "If they default on their loan, then the bank never goes and takes half the house back. It's like, 'Ariana, you stay in bed. We only want Tom's half.' It doesn't work like that."

Despite this warning from Vanderpump, Madix said that Sandoval's financial plans are on him, while "my financial responsibilities are remaining intact."

The financial strain created by the opening of Schwartz and Sandy had already had a life-altering impact on two of Madix and Sandoval's costars. It was one of the main reasons why Schwartz and Katie Maloney ended their marriage, according to Maloney.

"I'm trying to be excited for Tom, but this bar has a very complicated history," Maloney said in a confessional in season 10, episode 2. "It put a massive strain on our relationship. It just was a lot more of a presence in my life than I thought it would be, without me having say over it."

Katie Maloney and Tom Schwartz
Katie Maloney and Tom Schwartz. Todd Williamson/Bravo via Getty (2)

She continued: "All of the marital issues and arguments and everything we were having has now just been personified. This bar was the other woman in our marriage, and I'm standing inside of her now."

Later in the episode, Schwartz did admit that he was warned about the toll opening a bar could take on his marriage during a conversation with Sandoval.

"You did lose your house and your marriage," Sandoval told Schwartz, to which Schwartz responded: "And all my money."

Schwartz and Sandy's finally opened in November 2022.

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