Divorces often involve disputes over numerous assets and debts, as both parties work to separate their lives. The process is often very complex, and it is important to work towards a satisfactory outcome for everyone involved.
The division of a home is often a key topic during a divorce. Understanding the legal factors that may impact your plans may be useful as you move forward.
Community property state
As a community property state, Texas law stipulates that the two parties of a divorce need to share any property gained during the divorce. This means that if you and your spouse bought a home together, then you need to share the value after a divorce.
If one of you purchased the home before the marriage, it is separate property and you do not divide it at the time of the divorce. It remains the original owner’s property. However, the other party may be able to claim compensation for some of the home’s value. For example, if both parties contributed to mortgage payments or home renovations, then the spouse who did not own the home may make a community reimbursement claim.
Evaluate your finances
If you have a community property home and wish to remain living in it after the divorce, there are a few factors to consider, such as finances. You need to confirm that the monthly payments, maintenance costs and property tax are within your budget.
Profits from the home
If you decide to keep the house, the other spouse needs to receive the same profit that selling the house may have provided to him or her. The difference between the amount owed on the house and the home value equals the amount owed to the other spouse. For example, if you still owe $100,000 on your home but it is worth $400,000, then you need to provide your ex-spouse with $150,000.