Texas is a community property state, which means that marital assets are equally owned and therefore equally divided amongst spouses upon divorce. This type of division can have serious implications for your future, especially when you’re dealing with a significant amount of assets. Your real estate, for example, could be worth hundreds of thousands, perhaps even millions of dollars. So how are you going to handle your real estate during your divorce?
Ways to deal with marital real estate
You have several options at your disposal, recognizing that you and your spouse have the ability to negotiate a divorce settlement that works for you. Here are some of those options:
- Sell the property: This is a popular option. By selling real estate to a third-party, you and your spouse can easily separate, secure cash, and divide that money in an equal and fair fashion.
- Negotiate over it: Sometimes, for whatever reason, it’s hard to part with real estate. If it’s a family home, the custodial parent might want to retain the home in order to provide stability to their children. If it’s a family farm, then one spouse may want to keep it to continue to generate revenue post-divorce. In these circumstances, it’s likely that other assets will have to be used to negotiate a fair and equal resolution. For example, retirement accounts might be given up to offset half of the cost of a marital home, thereby making the transaction equal. Just keep in mind that if you’re wanting to keep the real estate, then you’re going to be solely responsible for its mortgage, upkeep, and maintenance moving forward, which can prove to be quite expensive.
- Continue to co-own: This option isn’t as popular for obvious reasons, but co-ownership allows you to continue to build equity and perhaps even generate revenue. This option can be especially enticing when it comes to income properties.
Know how to negotiate the resolution that is right for you
You have a lot of power when it comes to handling your divorce. However, you need to know your options and how to create a strong legal strategy that positions you well for success. If you’d like assistance with that, then now may be the time to discuss your case with an experienced family law attorney.