Divorce is a challenging chapter in anyone’s life. Beyond the emotional turmoil, there are financial implications that can be quite intricate, particularly when it comes to major shared assets like a home. One of the most common concerns when navigating divorce is what happens to the mortgage.
It’s vital to understand the legal landscape surrounding this issue so that you can make informed decisions. This article delves deep into the topic of handling mortgages during divorce in the state of Texas.
For personalized advice, please get in touch with Atty. Tyler Monahan, partner at Turner-Monahan, PLLC, to discuss your case.
Understanding Community Property in Texas
To comprehend the handling of mortgages in divorce, one must first grasp the concept of ‘community property.’ Texas is a community property state, which essentially means any property (including debts) acquired during the marriage belongs to both spouses equally.
Under the Texas Family Code (Section 3.002), it states:
“Community property consists of the property, other than separate property, acquired by either spouse during the marriage.”
This is crucial to know because, in the event of a divorce, the assets (and debts) must be divided equitably. This means both spouses are responsible for mortgage payments.
Mortgage and The Family Home
The family home often symbolizes security and a nest of memories. In divorce scenarios, there are generally three options regarding the family home:
Sell the Home: The couple can decide to sell their house, and after paying off the mortgage, the remaining proceeds are divided between the spouses as per the agreed or court-ordered percentage.
One Spouse Retains the Home: If one spouse wishes to remain in the family home, they may need to refinance the mortgage to remove the other spouse’s name and liability. In this scenario, the spouse keeping the home typically buys out the other’s equity share.
Both Spouses Retain the Home: In some rare circumstances, both spouses decide to keep the home, often to minimize disruptions for children. Both remain on the mortgage, and a clear agreement is required to outline responsibility for payments, maintenance, and eventual selling terms.
Texas Family Code Perspective
The Texas Family Code provides guidelines to ensure the equitable division of assets, including the family home and its associated mortgage. Section 7.001 of the code states:
“In a decree of divorce or annulment, the court shall order a division of the estate of the parties in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.”
This provision empowers Texas courts to make decisions on property distribution based on fairness rather than a strict 50/50 split. As such, the court considers various factors, such as each spouse’s financial situation, contributions to the property, and the welfare of any children involved.
Turner-Monahan, PLLC: Get Legal Guidance Today!
Given the complexity of these matters and their emotional weight, it’s critical to have an experienced attorney to guide you through the process. Proper legal representation ensures that the division of assets, including the resolution of the mortgage, aligns with both Texas law and the unique circumstances of your case.
Interested in how Turner-Monahan, PLLC can support you with your family law requirements? Schedule a free, no-obligation consultation with attorney Tyler Monahan to discuss the details.
Disclaimer
The commentary and opinions are for informational and educational purposes only and not to provide legal advice. You should contact an attorney in your state to obtain legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PPLC, by signing a written retainer agreement.
