The law in Texas gives each spouse in a marriage an interest in shared or marital property. Community property rules require that spouses share income and resources acquired with marital income if they divorce.
Some assets are relatively easy for couples to divide. They can validate the current balance of a bank account and then divide it between the two spouses. Other assets can be much more difficult to address, as it may not be possible to actually share them. A marital home is a perfect example. Unless spouses commit to a birdnesting custody arrangement, they likely won’t share joint ownership of the property after a divorce.
How do people commonly divide home equity during a Texas divorce?
By selling the home
If neither spouse needs to stay in the marital home for the sake of the children or has a pre-existing interest in the property, selling the home can be the easiest way to share its value. Each spouse can recoup what they invested in the initial purchase and receive an appropriate share of the proceeds from the transaction. An agreement to sell the marital home can make it easy for each spouse to receive a portion of the equity accrued during the marriage.
By arranging to refinance
Sometimes there are minor children who would benefit from staying in the same neighborhood. Other times, one spouse may strongly desire to retain the marital residence. In either scenario, they can refinance the property to withdraw equity and compensate their spouse for their interest in the home. If refinancing isn’t an appropriate solution due to unusual circumstances, the spouses could also agree to use other marital property to balance the value of the marital home in their property division negotiations.
Finding workable solutions for the most valuable marital resources can help people achieve better outcomes during a Texas divorce. Seeking legal guidance is a good way to arrive at personalized solutions.