If you are facing a divorce and you own a home, you are no doubt concerned about what will ultimately happen to that home. Generally, the family home is a couple's most significant asset, and sometimes, it is their only significant asset. If you are hoping to keep your home after your divorce but are concerned that it may not be a possibility for you, it might help to know that there may be options available.
The Division of Marital Property
In your Texas divorce, you and your divorcing spouse will divide your marital property in a manner that is deemed just and right, which amounts to dividing it in a manner that the court decides is fair. Your marital property refers to the property you and your spouse acquired together as a married couple, and your home is probably your most valuable asset.
If you want to stay in your home, you will likely need to offset your divorcing spouse’s share of the equity in that home. While many divorcing couples think the only way to do this is by selling the house from the outset, this is not necessarily true. Your options can include:
Co-Owning – Sometimes, divorcing parents want to keep the family home while the children continue to live there – as their primary residence with one of the parents. You and your spouse can agree to own the house together throughout this timeframe (generally until the children are out of the home) as it continues to build equity. Co-owning your home can work well as long as neither of you requires the proceeds from a sale in order to move forward financially post-divorce. When the time comes to sell the house, you may be in a better financial position to buy out your ex-spouse.
Paying over Time – If you take ownership of your home after the divorce, you could work out an arrangement with your ex by signing a note that allows you to pay him or her over time.
Owelty Loan and Payment – An owelty loan would allow you to own your home and pay off your ex for the amount of equity in the house that he or she is owed. When the court finds that a home cannot be divided without significantly diminishing the value of the resulting portions and that a just and right division of marital property can be made without requiring the sale of the home, it often orders a partition of the property with an owelty reward to help equalize each party’s share.
An Experienced Killeen Divorce Attorney Can Help
If you have concerns about keeping your home after divorce, Brett Pritchard at The Law Office of Brett H. Pritchard in Killeen, Texas, is a formidable divorce attorney with extensive experience helping clients like you address the division of marital property in a manner that works for them. We are on your side, so please contact or call us at 254-501-4040 for more information today.