I'm sorry to hear of your dilemma.
Presuming that the mortgage you have on your condo is the original mortgage and that you have not taken out a home equity
line of credit, or refinanced with anyone but the original lender, then under CA law, you may walk away from the property and the lender can only foreclose on the property. They may not seek a deficiency judgment against you. Neither could they seek to take any of your assets.
As for getting your wife's name off of the mortgage--you can't do that without refinancing the property, or paying the mortgage off, through a sale of the property or your payment in full of the mortgage.
Buy your new house before you walk away from your condo. Otherwise, you will have the foreclosure on your credit and you will likely find it impossible to by another property for several years unless you put a lot more down than just 20%.
Abandoning the property will affect both your credit and your ex-wifes. There is no way around it I'm afraid. If you have any follow up questions, you may ask them in this thread, even after accepting my answer.
I wish you the best in 2010.