Own a Home and Going through a Texas Divorce? Learn Your Options in This Blog Post

Texas divorce home ownership is a delicate and complex matter, as it’s not just a financial asset, but a space filled with cherished memories and emotional significance. Your family home is where your children grew up, where you built your life, and where both comfort and conflict have coexisted. In divorce proceedings, the fate of this home can be one of the most difficult issues to address. Beyond the legal intricacies of dividing property, concerns about maintaining or repairing the home during this transition can add additional stress. Handling these challenges requires careful consideration of both emotional and financial factors to ensure a fair resolution for everyone involved.

See, it is easy for an attorney to tell you to think about your divorce like a business transaction. Simply separate your emotions from your family home and you’ll be good to go, right? Easier said than done.

Understanding Emotional Ties to Your Home During Divorce

The truth is that if you don’t feel some sort of sentimental or emotional attachment to your home there is likely something wrong with you. Those emotions don’t necessarily have to be positive ones, either. Let’s not forget that you are getting a divorce for a reason. The fights, anger, bitterness, and other issues that led to your divorce likely occurred in that home, as well.

However, just because it is difficult to separate your emotions from the decision on what to do with your house does not mean that you should not attempt to do so. The fact is that you cannot and should not lead with your heart when it comes to determining what to do with your family home in your divorce. It is too valuable an asset and the impact of this decision can determine the course of your life for years to come.

In today’s blog post from the Law Office of Bryan Fagan, I would like to spend some time discussing with you what options you have when it comes to deciding how to proceed with your family house during a Texas divorce. You will have a number of options available to you but you need to consider your specific circumstances before you can comfortably make a decision on how to proceed in your divorce case.

Don’t put the house on a pedestal

There are certain parts of a divorce that just seem to be more important than others. The family home is one of those parts. People in a divorce will fight tooth and nail to be named the party who has the right to determine the primary residence of their children. I’m not trying to argue that this is not something worth fighting for or that it is unimportant. On the contrary, I spent the entire first part of today’s blog post arguing just the opposite- that your family home is a hugely important asset and part of your divorce.

However, this does not mean that you should treat your family home as a prize to be won at all costs in the divorce. Being named as the party who retains possession of the house after the divorce can have significant drawbacks as well. Nothing in a divorce comes without any cost and there are certainly costs (literally) to retaining the family home.

Navigating the financial aspects of divorce

For instance, you need to consider that your income is going to shrink as a result of the divorce. Whether it felt like it or not, Texas considers income earned in a marriage to be owned by the community. This means that any income that you earn from a place of employment is put into an imaginary pot and split up between you and your spouse. So, even if you never saw your spouse’s income after he earned it, or vice versa, that income is as much yours as it is your spouse’s.

This is important because that income went towards paying the mortgage on your home. Having two incomes go towards a mortgage is a lot more of an attractive position to be in than having one. If you have not been working at all in the past few years you will likely need to find a job immediately after the divorce. Even if you are being paid spousal maintenance (available, for the most part, to spouses who have been married for at least ten years) that income will likely last only as long as it takes you to find employment.

Another issue to consider is that you may be thinking only of what your children need. The key here is “think.” What your kids actually need and what you think they need are likely to be two different things. Your kids need less than you think to get by. Sacrificing your financial stability in order to provide your kids a false sense of security by remaining in the family home is not a good idea. The fact is that you are placing your children in danger by staying in a home that you cannot afford.

Ask yourself this before pushing too hard for the family home in your divorce

Here is a good test to determine if you actually want to stay in that home. Forget the fact that you actually own this house currently. Assume everything else is the same (divorce, family size, income, location of home, etc.). Now, if you had your share of the equity in the home (say, $50,000 for example) would you put that amount of money down on that house and purchase it right now? That is the question you need to ask yourself.

Determine if you are going to “buy” your house again. The reality of the situation is that your divorce offers you a legitimate chance to cash out your equity in the house and start over somewhere else. I will assume that if you are in a position to make a decision on the house you are going to be named as the primary conservator of your children. With all of this in mind would you stay or would you go? If would not buy the house again using the same amount of equity that your spouse is getting out of the divorce, then I cannot recommend that you push to keep the house.

Don’t stay in the family house: sell it

If you and your spouse choose to sell the house, this will offer you a clean separation from your past life and can possibly set you up for the near future from a financial perspective. I understand that in many ways your family house is an investment. It can be if you are in a solid position financially and in relation to your family.

However, your house becomes a place to sleep, a place to cook meals, and a liability in other ways when you are not in a stable financial position.

Your house will not appreciate in value like a mutual fund will. Your house requires upkeep, taxes, insurance, and a great amount of effort to maintain in many cases. The mortgage will need to be paid regardless of what is going on in your family life. These folks do not take any sympathy for you just because you have gone through a divorce.

Considering Housing Options After Divorce

If you choose to sell the house, you and your spouse can split the equity remaining based on whatever percentages you choose. That percentage will be based on your particular circumstances and those of your spouse. You can use that money to perform an analysis for your family to determine where you need to be (price-wise, location-wise, etc.) and select a new house to purchase. Or, you may even want to rent a house or apartment and take some time to unwind from the divorce and reassess your situation after that for a short period of time.

You and your spouse can negotiate how to pay for repairs and preparations to ready the house for sale. You must agree on selecting a realtor, setting a sale price, and making other decisions related to selling the house. Selling the house requires effort but offers clear advantages, including a straightforward financial separation.

You can remain in the house (or your spouse can)

Another option that you can choose from is to stay in the family house after the divorce. Your spouse can choose this option, as well. A lot of the decision that goes into whether or not to stay will depend on your specific circumstances. If you have kids, the parent who has possession of the kids during the school weeks may want to stay in the house to maintain some degree of consistency as far as where the kids go to school.

Assessing Housing Options Without Children

However, if you and your spouse do not have kids then you may not put as much worth into staying in the family house. At that point, you would have to make a decision about what is best for you and your family from a financial position. There are a number of different perspectives worth looking at when deciding whether or not to remain in the house. Here are a couple of them for you to consider.

First, you should understand that if you choose to stay in the house, you will need to buy your spouse out of their share of the equity. You are buying their half of the house by paying them whatever that half is worth (minus their share of the mortgage). You should get the house appraised by a licensed and experienced appraiser. Do not settle for a Zillow, HAR, or other online assessment of the value of your home. A comparative analysis of a couple of similar homes in your area and your home should do the trick.

Next, have the home inspected for problems or latent issues that require repair or replacement. You can negotiate on those repairs and see to it that adjustments are made to the value of the home based on those repairs. Now you are in a solid position to know what their share of the equity is in the home.

Navigating Property Ownership Changes in Divorce

The next step would be to discuss with your attorneys the steps associated with removing your spouse’s name from the deed to your home. By the same token, your spouse will want some reassurance that he or she can hold you accountable for missed mortgage payments. A deed of trust to secure assumption would allow your spouse to foreclose upon you in the event that you fall behind in paying the mortgage. Keep in mind that it is not a given that you will be able to have your spouse’s name removed from the loan via a refinance. If you do not qualify for one then this option is a good one for your spouse to limit their liability.

I would recommend that you speak to different lenders in advance to gauge whether or not you will qualify for a refinance. It makes little sense to wait until your divorce is over to do so. That forces the attorneys to insert contingent language into the decree such as, “in the event that person X qualifies for a refinance of the mortgage, then the following will occur…”. I prefer that everyone knows what is going to happen before the divorce ends.

In conclusion, navigating Texas divorce home ownership requires a thoughtful approach that balances both emotional attachment and financial fairness. Whether you’re deciding whether to sell, buy out your spouse’s share, or continue living in the home, it’s essential to consider long-term stability for yourself and your children. Consulting with a skilled attorney can help you understand your options, protect your interests, and ensure a smoother transition during this challenging process. Prioritizing both your financial goals and emotional well-being will help guide you through the complexities of home ownership in a Texas divorce.

Keep the house for now- but sell it later

The final option that can be chosen in a divorce would be for you or your spouse to retain the house for now but to sell it later on. I will begin tomorrow’s blog post with information about doing just that. In the meantime, if you have any questions about the material that we covered in today’s blog post, please do not hesitate to contact the Law Office of Bryan Fagan. Our licensed family law attorneys offer free of charge consultations six days a week here in our office. These consultations allow you to ask questions and receive direct feedback from our attorneys about your specific circumstances.

It is a privilege to serve the people in our community in family courts across southeast Texas. We welcome the opportunity to do the same for you and your family.

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Other Related Articles:

1. Handling a Home Mortgage in Texas Divorce
2. Navigating the Fate of Your Home in a Texas Divorce: Sell, Stay, or Negotiate?
3. Should You Move Out of Your Home After Your Spouse Files for Divorce?
4. What Happens to the Marital Home in Divorce?
5. Why can my home be divided during the divorce?
6. Navigating the Complexities: Determining Ownership of the Family Home in a Texas Divorce
7. Does refinancing a home change ownership of it in relation to a Texas divorce?
8. Read this blog post before moving out of the family home in a Texas divorce
9. Interested in how to pull equity out of your family home after a divorce? Read this blog post
10. Valuing the family home in a Texas divorce
11. Should you leave your family home before starting a Texas divorce?
12. What will happen with your family home in a Texas divorce?
13. Interested in how a divorce court will value your home? Read this blog post to find out how
14. What does temporary exclusive use of the home mean in the context of a Texas divorce?

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