Dividing the Marital Home in Texas

For many divorcing couples in Texas, the marital home is not just a property; it’s a place tied to memories, routines, family traditions, and deep emotional significance. It’s also often the largest financial asset shared between spouses. As such, deciding what happens to the home during divorce is a high-stakes decision that blends legal rights, financial obligations, and personal needs.

At Mokolo Law Firm, we understand the complexity and sensitivity of these decisions. We offer the legal guidance and negotiation strength you need to protect your equity, secure your future, and move forward with confidence.

Understanding Marital Property in Texas

Texas is one of only a few community property states, which means that most assets (and debts) acquired during the marriage are presumed to be owned equally by both spouses. However, not all property is treated the same. Understanding the legal classification of the marital home is the first step in dividing it fairly.

Property Classifications

1. Community Property

• Acquired during the marriage (regardless of who paid or whose name is on the title).
• Includes the marital home if purchased using joint funds or during the marriage.

2. Separate Property

• Owned by one spouse before the marriage.
• Acquired as a gift or inheritance, even during marriage (if not commingled).
• Increase in value may still be subject to division if community funds contributed to improvements or mortgage payments.

Note: Even if the home was purchased before the marriage, it may become partly community property if both spouses contributed to mortgage payments, renovations, or equity during the marriage.

Key Factors in Deciding Who Keeps the House

Texas family courts aim for a “just and right” division of community property, which doesn’t always mean a perfect 50/50 split. The court considers various factors when deciding who retains the home, or whether it should be sold:

1. Best Interests of the Children

• Courts often favour awarding the home to the primary custodial parent to provide stability for minor children.

2. Ability to Maintain the Home

• Which spouse can afford mortgage payments, taxes, insurance, and upkeep post-divorce?
• Can one spouse qualify to refinance the mortgage independently?

3. Emotional and Practical Considerations

• Is one spouse particularly attached to the home?
• Are both parties able to cooperate if co-ownership is considered temporarily?

4. Financial Standing and Earning Capacity

• The court may consider disparities in income, employability, or access to alternative housing.

5. Debt Allocation

• Who is better positioned to assume the mortgage or handle related debts?

Options for Dividing the Marital Home

1. Sell the Home and Split the Proceeds
This is often the cleanest option.

Benefits:

• Eliminates shared financial ties.
• Each spouse receives their share of the equity to use toward a fresh start.
• Avoids disputes over future property value changes.

Challenges:

• Emotional difficulty in letting go.
• Market timing and costs of sale may impact final proceeds.

2. Buyout by One Spouse
One spouse retains the home and compensates the other for their share of equity, often by refinancing.

Key Steps:

• Home appraisal to determine market value.
• Mortgage refinancing in the name of the retaining spouse.
• Legal release of liability for the departing spouse.

Benefits:

• Offers stability, especially for families with children.
• Keeps the asset in the family.

Challenges:

• Requires sufficient income and credit.
• Tied to interest rates and refinancing costs.

3. Deferred Sale (Temporary Possession)
The court may allow one spouse (often the custodial parent) to stay in the home for a specified period usually until children reach a certain age after which the home is sold.

Benefits:

• Protects children from major transitions during key years.
• Delays division to a later, potentially more stable time.

Challenges:

• Ongoing co-ownership and expense-sharing require strict agreements.
• May delay financial independence for both parties.

4. Co-Ownership After Divorce
Rare but possible, especially if the couple wants to delay sale for financial reasons or until market conditions improve.

Requirements:

• Written agreement outlining responsibilities, cost-sharing, and exit strategy.
• Clarity on who can live in the home, pay for repairs, and claim tax deductions.

Risks:

• Relies on post-divorce cooperation.
• Legal complexity if one party wants to sell later and the other does not.

Protecting Your Financial Interests and Equity

Equity in a home can represent decades of savings and investment. Whether you’re keeping the home or walking away with your share, Mokolo Law Firm helps you protect what you’ve earned.

We Help You:

• Accurately assess home value.
• We collaborate with real estate appraisers and forensic accountants as needed.
• Determine Your Share of Equity.
• Accounting for contributions, liens, tax obligations, and improvements.
• Ensure Proper Refinancing or Debt Allocation
• Removing your name from the mortgage is essential if you’re not keeping the house.
• Negotiate clear, enforceable agreements
• Written into the divorce decree to prevent future disputes.

Final Thoughts on Dividing Marital Home in Texas

Dividing the marital home isn’t just about who gets the keys; it’s about housing stability, financial security, and a clean foundation for the next chapter of your life. Each decision carries long-term consequences, and mistakes can be costly.

At Mokolo Law Firm, we provide the insight, advocacy, and compassion you need to make sound choices. Whether your case involves negotiation, mediation, or court intervention, we stand by your side every step of the way.
Ready to protect your home and your future? Contact Mokolo Law Firm today to schedule a confidential consultation.