The house you shared with your family before the divorce process was initiated is an important asset. A house is not easy to divide like it is for other types of assets or property. In most cases, both parties fight to hold onto the house not just for financial reasons but also because they have an attachment to the property.
In some cases, continuing to live in the house may bring up painful memories about the divorce. This may cause both spouses to want to sell it and start afresh.
What Determines Who Gets The House In A Divorce
How To Resolve A House In A Divorce
When calculating the value of your house, including the value of all the furnishings indoors and outdoors. These are issues that you need to start discussing with your lawyer at the initial stages of your divorce. Your house is part of the community property or property that should be divided between you and your ex-spouse.
But since it is a physical property, it cannot be divided evenly. For this reason, courts often consider who among the parties involved can handle all the expenses that come with the house on their own. But the court also prefers that the children remain in the family home, which means the custodial parent is more likely to get the house.
That means that the custodial parent will have to take on the expenses that come with the house after the divorce is finalized. Remaining in the home they are familiar with can be beneficial to the children and make it easier for them to handle the divorce. The house can stay as a symbol of stability not just because it is the place the children were raised in but also the place closest to their friends, family, school, work, and more.
Since the house is community property, the spouse that is keeping the home must buy out the other spouse and refinance the home.
Taking The Home’s Equity Into Account
What Happens To House In Texas Divorce?
Buying out the other spouse and refinancing means that the spouse that gets the house must take into account the home’s equity. For example, if you still owe 150,000 on the mortgage and the value of the house is $450,000, you will have about $300,000 in equity available for you and your ex. That is $150,000 for each of you.
The spouse that gets the house can take out a loan and pay the other spouse their share of the house’s equity. But couples often fight over who gets to keep the house, forcing the court to make that decision. Another option is for the couple to sell the house and split the proceeds according to a court order or the parties’ own agreement.
This is an excellent option if the value of your marital home has increased significantly enabling you to sell it at a great price. But selling the home may be a significant change for the children because the house has been a home to them. Moving can also separate the children from their friends and school.