The family home is probably the single largest asset most homeowners need to divide during a divorce. Texas is also a community property state, meaning all income and property acquired by either spouse during the marriage is community property and must be split as equally as between the spouses when they divorce (Texas Family Code § 7.001). So, how does the court split a house in two?
One solution is a sale. If neither spouse wants the house, they can sell the property and split the proceeds in half. This process is usually the most simple and straightforward, although you will have to worry about taxes on the profits at the end of the year.
If the spouses have children, a Judge may order that the house will go to the spouse who has primary custody of the kids, but this isn’t a rule. A judge may decide to award the house to the custodial parent to lend the child a sense of stability during the divorce process. However, if the spouses don’t have children, a judge may decide to award the house to the spouse who can afford the mortgage payments.
In some cases, a judge may decide to award residence in the house to one spouse and include in the divorce decree that the home must be refinanced. Except for a refinance provision, the court cannot order a spouse’s name be taken off the loan, and many people going through a divorce can’t afford to re-finance their homes. So, a judge will include a stipulation that if the house cannot be refinanced within a set number of months, it must be sold, allowing the profits to be divided between the owners. The division of the profits may or may not be equal, given the circumstances of a case.
If you’re worried about what might happen to your home after a divorce, talk to our skilled Flower Mound divorce attorney as soon as possible. Phillip M. Herr, Attorney at Law has more than 15 years of legal experience to offer your case. Let him provide you with experienced and compassionate legal advocacy.
Contact us at (469) 314-9247 or fill out our online form to schedule a case consultation today.