Experience, Compassion, Connection.

I Will Be There For You.

What to do with home and mortgage post-divorce

On Behalf of | Mar 9, 2022 | Divorce

Although divorce is a highly emotional time in many peoples’ lives, stress about finances can also bring problems for couples splitting up in Texas. One of the biggest concerns is what will happen to the mortgage on a primary home, especially if the title to the house is in both spouses’ names.

Mortgage debt remains

While you may have decided to divorce, your decree does not preclude you or your spouse from paying your mortgage. You’re still responsible for the monthly payments, which can be financially difficult now that you will have separate households. No single answer is correct or may fit your situation, but typically three scenarios can occur:

  • You sell your home to a third party
  • One spouse sells the house to the other
  • One spouse stays in the home with the other paying the mortgage, typically when children are involved.

Issues to resolve with mortgages

The most critical issue is that both spouses should agree on what should happen. In addition to deciding what to do with the home, you’ll need to figure out how to divide its equity, which can be used as a bargaining chip if one spouse wants to keep the home and the other does not.

Getting the right advice

No matter what you ultimately decide to do with your home and its accompanying mortgage, getting the right advice is crucial to successful property negotiations. If you rush headlong into negotiations without evaluating your options, you may select the wrong one, which could have considerable tax and financial implications.

To ensure that you get the best possible outcome, with a variety of professionals, including tax accountants and financial advisors familiar with these issues. By doing so, you may be able to soften the economic problems divorce brings.