Whether you own a hip downtown flat, a gorgeous Sugarland mansion or a beachfront Galveston gem, you love your home. Not only does your house provide a comfortable place to relax and unwind, but it also represents one of your more valuable assets. If you are planning to end your marriage, you may have a burning question on your mind: What happens to the house in a Texas divorce?
Texas is a community-property state. This means the assets you and your spouse acquire during your marriage are community property. As such, upon divorce, you must divide ownership of the house. Unlike cash, which you can easily split 50/50, you cannot cut your home in half. Fortunately, you have a couple of options for dealing with your residential property.
Sell the house
Oftentimes, divorcing spouses choose to sell the house and split the proceeds. After all, sale proceeds are easier to divide than a physical object. Selling your residence, nonetheless, presents some challenges. First, you and your soon-to-be ex-spouse may disagree about the listing price. Obtaining a few appraisals may help with this challenge. You may also argue about which improvements to make before listing the place. Furthermore, even after settling your disagreements, you must find a buyer and close the deal.
Keep the house
Your house may have sentimental value to you. Alternatively, you may want to keep your home to continue to provide a stable environment for your kids. Regardless of your rationale, holding onto your residential property may be possible. If you go this route, though, you may have to come up with enough cash or other assets to buy out your spouse’s ownership interest.
Whatever type of home you own, you have an interest in what happens to it. While your divorce may bring some uncertainty to some parts of your life, you should not have to be in the dark about your house. By understanding Texas law, you can better plan for proactively addressing your property’s future.