Property and asset division can be difficult enough but it can be especially challenging when the divorcing couple are dividing the family home. Deciding what to do when the division of a home is involved can create emotional disagreements which is why it is helpful for divorcing couples to be familiar with their options.
How property division works
Property division in Texas is based on equitable property division rules. This means that property will be divided as fairly, or equitably, as possible between the divorcing couple. Typically, only marital property is subject to the property division process and is distinguished from separate property that is not subject to division. Divorcing couples should be familiar with the distinction, how property is categorized and its impacts.
Ways to divide a family home
There are several different options for dividing the family home during the property division process. One option is for the couple to continue ownership of the home as joint owners which will require them to work out an agreement concerning payment for costs of the home. This may be one option for couples with minor children to consider if one parent wishes to remain in the home until the child is grown.
In addition, other options include selling the home and splitting the proceeds which requires careful consideration of the tax consequences. Divorcing couples who decide on this option should also take into account the need to secure alternative housing. Lastly, a third option is for one divorcing spouse to buy out the other spouse. If the divorcing couple decides on a buy-out option, they will need to get a valuation of the home to calculate the buy-cost and will also likely need to plan on refinancing the home.
Divorcing couples may wonder how they should go about property division of the home they share and what options they have. The family law process provides valuable resources to hep guide them through their divorce and the challenges of property division.