Dividing the Marital Home in Texas

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Protecting Your Separate Property for Life After Divorce

When going through a divorce, one of the most daunting tasks is dividing the marital home. The longer you and your spouse have been together, the more you have likely acquired during your marriage that will need to be split. You may have a lot of questions about home equity during divorce and how that will work for you and your spouse throughout the process. A systematic, step-by-step approach to property division can ease your anxieties and help you move through the critical process of divorce and splitting the house in a way that moves smoothly.

A Goranson Bain Ausley Divorce Attorney with Experience in Handling Property Issues Can Help

If you have questions about how to divide the marital home or are facing separate property issues in a divorce, hire an attorney who can capably manage the property aspects of a divorce and has expertise in characterizing, valuing, and tracing property. With the guidance and assistance of a skilled attorney, your separate property can be protected in divorce.

With decades of experience, Goranson Bain Ausley attorneys have successfully resolved property issues for many clients-including both contested and uncontested divorces, high net worth, and those with complex and less complex property matters. We are well-versed in the nuances and complexities of divorce and home equity matters, especially in preparing cost/benefit analyses to help you decide which separate property claims to pursue.

When advantageous, our attorneys will recommend adding an independent forensic accountant to the team to perform complicated tracing and strengthen your case. Establishing your separate property is vital to a durable settlement that enables you to retain essential assets for life after divorce. Rely on a Goranson Bain Ausley attorney to protect and secure your property rights.

Community vs Separate Property

Texas generally divides a divorcing couple’s property into two basic categories: community property and separate property. Under property division laws, individuals can retain separate property pursuant to a divorce. This might include property owned before the union, property that was a personal gift, or an inheritance to one party during the union. Once a separate property is accounted for, the court will divide the community property of the marriage among parties in a fair way. In allocating this division, the court might contemplate several factors, including business opportunities, education, age, income, and the parties’ earning capacities.

What Happens to the Marital Home When One Spouse Owned the Home Prior to the Marriage?

Divorce and house equity may be more complex depending on when the home was initially purchased, and by whom. If a spouse owned the family’s residence before the marriage, the value of equity at the beginning of the marriage is considered the owner’s property. However, once the marriage continues, additional equity that accrues creates an equitable claim for reimbursement upon divorce under Texas law. The philosophy is that the couple utilizes community dollars that accrue during the marriage to pay down the separate property mortgage during the relationship. As a result, the community estate has expended funds to its detriment, which benefits the different estates of the property owner.

Texas courts can consider this at the time of divorce by ordering the spouse with the separate estate to reimburse the community estate for those expenditures.

What Happens to the Marital Home if the Couple Mutually Holds Ownership of the Home?

Before starting the process, many wonder how home equity works in a divorce under Texas Law. Texas utilizes the community property model for divorce. This means if the house was purchased during the marriage using 100% community funds, assuming community equity exists at the time of divorce, the first step in splitting home equity would be to obtain an accurate evaluation of the home’s worth. The clearest indicator of a property’s value is the price that a willing buyer will pay. However, if neither side wants to sell the house, you must determine how to split home equity in a divorce. You can calculate an estimate of the property’s fair market value can be achieved through a formal appraisal. Many realtors also provide informal market assessments, which can give parties an estimate of the home’s value. However, an official appraisal is more accurate.

When it comes to divorce and house equity, there are several options for apportioning the equity on the home once the property’s market value is determined. If neither party desires to keep the home, dividing the equity proportionately after a sale could work. However, there are several other important considerations. For example:

  • Who will pay the mortgage, insurance, and taxes while the sale is pending?
  • Who will cover upkeep expenses?

Moreover, will someone remain in the home pending the sale? These issues could affect a fair division of home equity.

If a spouse wants to retain the home, the remaining spouse can compensate the other party by forfeiting other community assets in the property division pool. In this case, the party not staying in residence may get a more significant fraction of the other assets or contribute less to the parties’ outstanding debt.

Ultimately, obtaining a correct market assessment of a residence is step one in the property settlement process. If you want to decipher how your property division process might unfold, contact an experienced family law attorney at Goranson Bain Ausley.

A Goranson Bain Ausley Divorce Attorney Proficient in Property Issues Can Help

If you have questions about how to divide the marital home or are facing separate property issues in a divorce, hire an attorney who can capably manage the property aspects of a divorce and has expertise in characterizing, valuing, and tracing property. Without the guidance and assistance of a skilled attorney, your separate property can be lost, in whole or in part, to your spouse in the divorce.

With decades of experience, Goranson Bain Ausley attorneys have successfully resolved property issues for many clients—including both contested and uncontested divorces, high net worth and those with complex and less complex property matters. We are well-versed in the nuances and complexities of property matters, especially preparing cost/benefit analyses to help you decide which separate property claims to pursue.

When advantageous, our attorneys will recommend adding an independent forensic accountant to the team to perform complicated tracing and strengthen your case. Establishing your separate property is key to a durable settlement that enables you to retain essential assets for life after divorce. Rely on a Goranson Bain Ausley attorney to protect and secure your property rights.

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