Divorcing spouses everywhere want to know the answer to this question. Besides conservatorship (the term for child custody in Texas), few other topics reliably cause as much stress among people going through a dissolution of marriage.
There are several ways a Texas judge might choose to divide the house between two spouses if they cannot come to an agreement. First, however, it must be determined whether the house is marital or separate property.
Dividing Assets in a Community Property State
Texas is one of nine states that follows the community property standard regarding asset division in a divorce. In a community property state, spouses are presumed to own 50 percent of marital property. Marital property is generally anything purchased or obtained by either spouse during the marriage. Separate property is anything a spouse gains before marriage.
In many—if not most—cases, the house in a divorce is indeed categorized as marital property. Both spouses often work and contribute to mortgage payments and the upkeep of the house. The house may sometimes be considered separate property, but the sole owner must present clear and convincing evidence that that is the case.
So, the House is Marital Property. Now What?
Let’s assume you and your spouse are getting divorced, and it has been established that your house is marital property. In that case, you are presumed to own 50 percent of the equity in the home. The judge might decide to deal with the house in one of the following ways:
- Order the home to be sold and split the proceeds between you and your spouse. This is a relatively clean way to handle the house. Assuming a fair amount of equity has been paid into the house, you will likely receive half of the selling price after subtracting the amount still owed on the mortgage.
- Order the spouse who gets the home to buy out the other spouse’s interest. Let’s say you and your spouse have $150,000 of equity in the house. If you get to keep the house, you might be ordered to pay $75,000 to your spouse for their half of the ownership interests.
- Award one spouse the home and the other spouse assets of equivalent value. Instead of receiving money for your share of the house, you might gather other marital property that’s roughly equal in value.
Not All Marital Property is Divided Equally
Even though Texas is a community property state, judges have some discretion when dividing marital property. According to state law, the court must divide marital property in a way that is “just and right.” That means marital property may not be divided evenly between you and your spouse. Courts are empowered to consider many factors when dividing property, like both spouses’ earning capabilities, income, physical fitness, and education level.
Every Divorce is Different
The house you and your spouse shared might be the most significant asset that needs to be divided during your divorce. To give you the best chance of getting the property division arrangements you want, partner with a knowledgeable and experienced Texas divorce attorney.
We would be honored to represent you during what is likely a stressful and turbulent time in your life. Our caring team is waiting to speak with you; contact Tycha Kimbrough with Kimbrough Legal today to get started.
Divorce Wise™
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