Who Gets the House or Mortgage in Divorce in Texas?
Introduction
Making decisions on the home's disposition is crucial when a couple owns it and gets divorced. Separation is a heartbroken moment for both parties. Deciding on shared property is challenging. Who will pay the mortgage if one partner stays in the house? What happens with the house depends on several criteria, such as credit score, equity in the house, and the financing and title history of the property. State laws also play a vital role in deciding who gets the house after divorce.
How Can Community Property Be Divided?
Texas is a community property state. Any property a couple earns during their marriage will be divided based on the court's determination of what is "just and equitable." According to Family Code Chapter 3, property in Texas is usually split evenly. However, real property is considered community property and cannot be divided. Therefore, to establish how equity and debt will be divided, both spouses must estimate the value of the marital home and property.
Couples may choose to sell a shared property. They are also free to decide if one partner agrees to live there. Both parties will decide who will pay the mortgage and other debts while the other stays in the marital residence.
Couples may decide that one partner stays in the home as long as the other gets half of the equity. To ensure equitable property partition, the spouse who stays in the house may gift the other spouse assets that equalize the home's value.
Mortgage in Divorce: Selling the Marital Home
Most Texas judges believe that selling the marital residence and splitting the money is one of the simplest ways to handle marital property. If mortgage installments are left to make, spouses can decide on a shared payment amount. This issue can be resolved if one partner accepts mortgage payments and remains in the marital residence.
Many people find it challenging to sell their family home and move on. They have spent years living and raising their children in their family home and resist leaving the house where they have spent so many memorable moments. However, a few crucial factors are vital to safeguard both couples.
Home Ownership in Texas
Even in cases where the judge has directed the spouse residing on the property to pay the mortgage, the other spouse bears responsibility when a divorce decision grants one spouse ownership of the marital home or property and that spouse defaults on the mortgage.
In other words, a person may be ordered out of a divorce and lose ownership and control of property, but they will still be responsible for paying the mortgage. Worse yet, a family court judge's decision that one spouse is solely accountable for mortgage payments does not impose any restrictions on the mortgage business.
Consideration of Fault in Divorce
Divorces that are "fault" or "no-fault" are legal in Texas. A fault-based divorce could affect how the property is divided. If it's based on adultery or cruelty, it may affect the division of property, possibly including the house.
When One Spouse Remains in the Marital Home
One partner may stay in the marital residence. However, they must consider numerous factors, including the use of:
Special Warranty Deed
Deed of Trust to Secure Assumption
Consider if each spouse qualifies for a mortgage refinance based on their income. If one spouse is looking to stay in the home, they may speak with a lender. A lender can determine if they qualify for pre-qualification to refinance their mortgage.
If all goes as planned, one spouse may keep the marital residence and make mortgage payments. Nevertheless, in this case, both couples will desire certain precautions. Among them are:
Special Warranty Deed
A Special Warranty Deed protects the non-resident spouse from asserting any claim on the marital residence after deciding who gets the house. This allows the surviving spouse to refinance their mortgage. The deed also allows one spouse to transfer one spouse's interest in the marital property to the spouse who intends to stay there.
Deed of Trust to Secure Assumption
If one spouse decides not to stay on the marital property, a Deed of Trust to Secure Assumption protects them from being held responsible for mortgage payments. This document, which releases the other spouse from any future duty and absorbs future mortgage payments, has the signatures of both parties.
Get Advice from Capital Advisors to Split the Property After Divorce
Are you facing issues splitting your property after divorce? Capital Advisors can help you! Property division after a divorce is always challenging, but you don't have to do it alone. We specialize in offering expert guidance to help you split your property.
Why choose Capital Advisors TX? We offer tailored assistance to understand your situation. Our team works with you to maximize your assets. We're not just advisors but your partners in securing a just settlement. Don't let the stress of property division weigh you down. Reach out to Capital Advisors today!
Conclusion
Determining who gets the house in a Texas divorce is complex. Multiple factors, such as community property laws, individual credit scores, and the property's financing and title history, influence the process. Texas law ensures a fair and equitable division of assets. However, real property, such as a marital home, presents unique challenges.
Couples often face difficult decisions about selling a house in Texas. The involvement of special legal instruments, such as the Special Warranty Deed and the Deed, can protect both parties' interests.
Frequently Asked Questions (FAQs)
Who gets the house after a divorce in Texas?
In Texas, it is common for the spouse to receive primary custody of any children and live in the residence after divorce.
Who pays the mortgage during a divorce in Texas?
If one spouse is given the house, they will generally make future mortgage payments.
How is a house split in Texas divorce?
All assets obtained during a marriage are generally regarded as "community property" and are subject to an equal division between the spouses.
Why is it suitable to consult Capital Advisors to buy a home in Texas?
Consulting Capital Advisors is a practical approach to buying a home in Texas.
What type of services do Capital Advisors offer?
Contacting Capital Advisors enables you to access various property services, such as listing and advertising your property.
