For many people going through a divorce, the family home will be the largest asset divided. While Texas is a community property state, that doesn’t necessarily mean marital property is split evenly. Instead, courts typically distribute assets in a “just and right” manner.
Despite the monetary value of a home, it’s also one of the most challenging issues from an emotional standpoint due to the years and memories you’ve already invested. It’s even more difficult for parents who don’t want to uproot their young kids from familiar surroundings.
Get an accurate appraisal
Obtaining a precise valuation of your home is essential to receive your fair share. While realtors use comparative market reports to determine a home’s value, divorcing couples should work with a licensed appraiser, who considers additional factors. This is especially crucial when high-end upgrades are made to the property.
Options for your family home
Once the value has been established, there are a couple common ways to proceed:
- Selling the home: Some couples decide a fresh start is the best way to go. Selling and dividing the proceeds may be a cleaner and easier option. However, it’s essential to consider potential tax consequences and assess what type of replacement home best fits your future budget before you choose this option.
- One spouse buys out the other: If one spouse wants to remain in the home, it may make sense to negotiate a fair price to buy out the other’s interest. Again, consider several factors, including capital gains taxes, covering monthly expenses and future resale value.
Focus on a fair outcome
Dividing a family home can be just as much about the emotions as the financial outcome. That’s why a collaborative divorce may be preferred. This method can be less stressful because you stay in control of the process, and you can make unique arrangements that help to achieve the result you want.