When a couple divorces, many issues must be resolved. One common quandary splitting couple’s face is which spouse will retain the marital home and what happens to the mortgage on said property. The Law Offices of David Kohn have experienced Texas divorce attorneys that can assist in answering this question and helping you navigate through the divorce process.
The Property Division Process
Before any divorce is finalized, a couple’s property must be divided. In instances where the split is amicable, the couple might agree on a plan that is acceptable to a court of law. However, should the parting partners not possess the capacity to reach a settlement, the Texas courts will decide for them.
When determining how the marital home or any other asset is to be divided, it must first be determined what legal category said property is placed into. In Texas, only marital or community property is divided upon divorce or separation. Community property is defined as the assets the spouses accumulated during their married life. Therefore, if the house was purchased after the couple was married, said entity would be considered community property and subject to division.
Furthermore, Texas courts divide property in adherence to the equitable distribution principle. This legal instrument mandates that assets be divided as evenly and fairly as an adjudicating body deems appropriate. That said, said distribution will not necessarily be broken down in an even fifty-fifty split.
All property (including the family home) will be distributed after considering numerous factors such as the marriage duration, the age and health of both spouses, how much each spouse contributed to the accumulation of said assets, as well as the earning capacity and financial health of both individuals. Additionally, if the couple has minor children, the court might render decisions with the best interests of said young people in mind.
The Mortgage Issue
Once a court decides how assets will be distributed and determines which party will retain the home, a final divorce agreement is rendered. This document will also set guidelines dictating the responsibilities each ex-partner will have such as who will be on the hook for making mortgage payments. This circumstance, however, is not always ideal. After a separation, the responsible spouse’s financial capabilities might change causing undue emotional and financial hardship coupled with the possibility of losing the home.
The Importance Of An Attorney
Many legal and financial advisors believe that the key to avoiding such an unenviable situation is to reach some type of amicable agreement and avoid taking the matter to trial. A Texas divorce attorney may be able to negotiate with their client’s spouse and said individual’s lawyers to reach a fair settlement on the best method of resolving the mortgage matter and all other asset distribution questions.
Resolving the mortgage question might be accomplished by executing actions such as:
Selling The Property
Assuming the couple has built up enough equity in the home and can sell it, pay off the outstanding mortgage balance and walk off with a decent profit for both parties, selling the home if often a recommended option.
Refinance And Establish A New Mortgage
Should one spouse feel a strong emotional attachment and feel an unbreakable desire to remain in the marital home, said individual might be able to refinance the property and establish a mortgage strictly in their name. However, completing this process will be contingent upon meeting specific income and credit requirements.
It is important to reiterate that any decision made can have a significant impact on one’s credit and finances. Therefore, anyone faced with similar circumstances is urged to contact the Law Offices Of David Kohm. We will review your case and offer advice on the best possible solutions. Call our law offices today at any one of the following convenient locations for a free consultation:
Arlington (817) 522-4451
Dallas (972) 362-6848
Fort Worth (817) 764-1375
Plano (972) 354-4602
Cedar Hill (972) 338-9427
McKinney (469) 522-3688
Lewisville (972) 354-4605
Frisco (972) 725-7681
Grapevine (817) 835-8677
Irving (972) 354-4610
Keller (817) 204-0904
Garland (214) 572-2251
Denton (940) 222-4060
Addison (972) 564-8108
You can also contact us online by using our quick contact form.