Texas residents who decide to divorce may find themselves giving significant thought to how the family home will be handled at the end of the marriage. The financial value can be considerable; in many cases, real estate is the couple's largest single asset. As a result, many partners choose to sell the home during the divorce. Unlike an investment fund or bank account, real estate cannot be divided in two.
If a couple sells the home during the divorce, they can pay off any remaining mortgage on the property before dividing the proceeds. While this often is the easiest financial solution to the problem, future exes may also hesitate to take this step. Parents of children who have grown up in the home are often particularly attached to the house, and one spouse may seek to keep the house. However, there are some important guidelines for couples to keep in mind when determining how to handle the marital home.
In the first place, it is often much more challenging to afford the home on one salary than on two, in terms of any remaining monthly mortgage payments. The spouse staying in the house will also need to buy out the other spouse's equity stake, which can pose a real challenge if the home is highly valued. In addition, it is important to refinance the mortgage into the name of the remaining spouse and transfer the deeds in order to avoid lingering liabilities or rights on the part of the other spouse.
Dealing with the financial elements of divorce can be a challenging task, especially as they can carry emotional weight as well as long-lasting effects. A divorcing spouse can work with a family law attorney to reach a fair settlement on a range of matters, including property division and spousal support.
