Spring is on its way! Most of us get restless in the Spring. We think of projects we have put off. We clean out closets and the garage. Spring cleaning consumes some of us. What if your Spring includes a planned divorce or move? There are some things you should consider before making decisions about what to do with the house, typically the most valuable marital asset.
Perhaps you are planning to divorce and are on friendly terms with your soon-to-be former spouse. Perhaps you are thinking that you will place the house on the market before you hire an attorney and go ahead and split the proceeds 50-50. At first blush this may make sense. After all, Spring seems to be the right time to sell a house in the Frisco, Allen and McKinney areas. But, be careful. This may or may or may not make the most sense for you in your divorce.
The first question you should ask is when was the residence purchased? If it was before the marriage, it will be the separate property of the spouse who purchased it, even if there has been a refinance after the marriage. There may be reimbursement claims to the community estate for improvements made to the separate property during the marriage. If the house was purchased during the marriage, and it makes sense to sell the property, there may be a reason not to divide the proceeds equally. The law in the State of Texas does not presume or require a 50-50 division upon divorce. Rather, it must be equitable. An equitable division takes into consideration many other factors, such as the nature of all the assets to be divided. Each asset does not necessarily get divided. Rather, it is the entire value of the estate that is divided.
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