When you work your way through a Texas divorce, you want to make sure to consider all assets so that you increase the chances of receiving your fair share. For many former couples, the equity they have in their shared home is among their most valuable assets. For this reason, figuring out how to handle the equity you built up in your home is an important step in the divorce process.
According to NerdWallet, the first thing you need to do when splitting up home equity is figure out how much your home is currently worth. Once you have an appraisal or two performed, you may move forward with deciding how to split up the equity you have. You may choose to do so in one of the following ways.
By listing the home and splitting the profits
You may find it easiest to list your home for sale and then split the profits you make on the sale straight down the middle. This gives each of you an equal amount of equity. It also helps you make a firm, clean break from one another.
By refinancing your mortgage
If you want to keep living in the family home and your former partner does not, or vice-versa, have the party who wants to stay try to refinance the mortgage. This would mean that the party wanting to stay must qualify for a new loan on his or her own.
Sometimes, market conditions or other factors may make it an inopportune time to sell or buy a home. In this scenario, you may want to take turns living in the home or figure out an alternative solution until conditions improve.