While there are only nine states that follow community property laws during a divorce–and Texas is one of them–there are still many potential complications when determining ultimate settlements. Whether a simple or complex divorce, couples must carefully identify assets and liabilities to appropriately divide marital property. This can also include the need to delineate marital versus separate property. The marital home is often one of the central assets at heart during a divorce.
An article in the media recently discussed some of the key facts that must be determined when identifying what to do with a home when getting divorced and identifies four key questions that must be addressed. The first question that must be answered is whether or not either spouse wishes to keep the home. Next up is to identify whether or not the spouse that wants to retain ownership of the home can actually afford to do so. Certainly support and other elements of the divorce agreement can affect this as well.
A third factor is whether or not one spouse has enough assets in any form to buy the other spouse out of the home. Again, other portions of the overall divorce settlement can impact a person’s ability to do this or not. Finally, both parties will either need to agree on the value of the home or accept the valuation determined by the court.
Whether in a simple divorce or a high-asset divorce, determining the future of a home involves many steps and may be best carried out with the help of a lawyer. If you are in such a situation, you may consider getting legal counsel before finalizing any agreement.
Source: Huffington Post, “What to Do With Your House in a Divorce Case,” Christian Denmon, Denmon & Denmon Trial Attorneys, December 9, 2013