| Texas Divorce and Property Division-Should You | | | | A second possibility is that your spouse retains |
| Keep the House? | | | | the house, again either by agreement or after a |
| Determining whether and how to keep the house | | | | trial. Conversely, this would mean they would be |
| is often one of if not the biggest issue a spouse | | | | awarded the property and would be solely |
| has in their divorce case. Oftentimes it is the | | | | responsible for payment of the debt on that |
| most significant asset a couple owns and | | | | asset. If you are the spouse not receiving the |
| sometimes the only one which can be readily | | | | house it is very much preferable that the |
| converted into cash without any form of tax | | | | mortgage be refinanced so that your name is |
| penalty. In the final analysis, the determination that | | | | removed from that debt. This is critical because |
| must be made is whether you keep the house, | | | | if your ex were to default under the current |
| your spouse keeps the house or the property is | | | | mortgage at a later date it could dramatically |
| sold and the equity split between the parties. This | | | | impact your credit score and even expose you to |
| article will explore the analysis a person should go | | | | a possible lawsuit. The only way to avoid this |
| through in a divorce case when faced with this | | | | situation is to have the debt refinanced so that |
| decision. | | | | your name is removed. |
| One possibility is that you keep the house, either | | | | A final possibility, and one that is often the best |
| by an agreed resolution or after a trial. Generally | | | | option, is that the property is sold and the net |
| this means that you would be awarded the | | | | proceeds (sales price less cost of sale and any |
| property and you would be solely responsible for | | | | indebtedness) are divided between the parties on |
| the debt attached to that property. One of the | | | | some percentage basis. This alternative avoids |
| key issues that should be considered is whether | | | | the refinance issue because the debt is paid off at |
| post-divorce you can afford it. Often it is simply | | | | the time of divorce. Also, neither spouse is |
| not realistic for either spouse to handle the | | | | placed in the position of attempting to afford the |
| payments and related expenses on just one | | | | monthly expense of a house that was purchased |
| person's income. You should cautiously analyze | | | | based on conditions that are no longer accurate |
| whether your income will be sufficient to allow | | | | (dual income household, larger home needed for |
| this. Another issue that must be addressed is | | | | entire family, etc.). In the majority of cases this |
| whether your spouse will require that the | | | | option is usually the best fit, although |
| mortgage be refinanced in order to remove their | | | | circumstances do vary. |
| name. Again, depending on your financial | | | | As you can see deciding how to handle the |
| circumstances, you may have difficulty qualifying | | | | marital residence in a marriage dissolution is a |
| for the mortgage alone and terms may not be | | | | complicated. Whether you decide to keep the |
| nearly as favorable as what you have in the | | | | residence, let your spouse have the residence, or |
| current mortgage. The bottom line is that you | | | | sell the home and split the proceeds, the situation |
| need to carefully evaluate this important financial | | | | needs to be carefully examined. As long as you |
| decision before making a rash emotional | | | | go into it thinking with your head and not your |
| commitment to a financial obligation which may | | | | heart you'll make a good decision and do just fine. |
| later be impossible to live up to. | | | | |