For some Texas couples who are getting a divorce, what happens to the family home can be the biggest issue in property division. It is the most valuable asset that many people own, and it also has emotional connotations that one or both spouses can find it difficult to let go of.
Essentially, the home can be either kept or sold, but there are a number of complexities involved. If one person keeps the home, they need to make sure that they can afford the mortgage and other expenses, such as upkeep and insurance. It is also important that all paperwork is completed to take the other spouse off any documents that would involve their ongoing financial responsibility.
Keeping or selling
There may be situations in which both spouses continue to own the home after the divorce. One is if they are practicing a “nesting” form of child custody in which they take turns staying in the house with the children, but this is often not sustainable over the long term. The other is if they want to sell the home but cannot do so immediately. In both situations, there needs to be an agreement about who is responsible for repairs, any necessary renovations and other associated costs. Once the home is sold, the estranged couple can split the profit.
As part of the asset split
Sometimes, one spouse takes the home in lieu of other assets. If this is the case, it is important to weigh the true values of the assets, including the tax burden and maintenance costs.
Whatever decision is made, it should be done after careful consideration and, possibly, a consultation with a financial professional. A house can be a substantial investment and offer financial security, but it can also become a financial burden in some circumstances.