One of the most valuable assets Texas couples may buy during a marriage is their home. If the marriage ends in a divorce, there are likely to be disputes regarding what should happen with the property. Before making decisions about the home, such as whether one spouse should purchase the home in their own name, there are certain factors that should be carefully considered.
One issue to consider is how much the mortgage should be in order to execute a buyout. In some cases, other assets owned by a spouse can be applied to the buyout amount. This could then reduce the loan amount that's needed. In other cases, one spouse may prefer to use cash from the home in order to adhere to the buyout terms. If this occurs, the amount of the new mortgage will be higher. A professional divorce mortgage advisor could help a couple figure out what would be the best mortgage to apply for. After this has been determined, the buyout structure can then be established.
Divorcing spouses who want to retain ownership of the home might also want to know if it's wise to refinance the home in their name only before the finalization of the divorce. This is generally the wisest option, assuming they are able to qualify on their own for a mortgage and do not have to use income received from child support or alimony to qualify.
A divorce attorney could provide a client with valuable guidance during the property division process. The attorney may consider a client's circumstances and before working to obtain settlement terms that include complete ownership of the home.
