Divorce can be a challenging time, especially when it comes to deciding what happens to the family home. In Texas, a community property state, the division of marital assets, including the home, follows specific rules. Understanding your options can ease some of the stress. Here, we explore the choices available to couples during this transition.
Selling the home
One common option is selling the family home. This choice allows both parties to move forward with a clean slate. After the sale, both parties typically split the proceeds evenly, as Texas law often mandates a 50/50 division of marital property. This approach can simplify financial matters and provide both spouses with funds to start anew. Selling might be ideal if maintaining the home is not financially feasible for either party alone.
Refinancing the mortgage
Another option is refinancing the mortgage in one spouse’s name. This route allows one spouse to keep the home. To proceed, the spouse wishing to stay must qualify for a mortgage independently. Refinancing can be advantageous if the spouse has a stable income and wishes to maintain stability for any children involved. This process involves removing the other spouse’s name from the mortgage, ensuring they are no longer financially responsible.
Buying out the other spouse
A third possibility is one spouse buying out the other’s share of the home. This option allows one party to retain ownership while compensating the other for their share. The buying spouse must have the financial capacity to pay their partner, either through savings or by securing a loan. This solution works well when one spouse has a strong attachment to the home or desires to maintain continuity for the family.
The inception of title rule in Texas determines whether the home is marital or separate property. If one spouse purchased the home before marriage and did not retitle it, it might remain separate property.
Couples can also create their own agreement for property division, which a judge will approve if deemed fair. Factors such as the length of the marriage, each party’s earning capacity and existing separate property will influence the court’s decision if the parties cannot reach an agreement.
Dividing assets in a divorce is complex. It is wise to consult with a Texas divorce attorney to understand your rights and obligations. Legal guidance ensures a fair resolution, allowing both parties to move forward with clarity and confidence.