Selling Property During a Divorce

Going through a divorce is one of the most stressful events of one’s life. You have to deal with the family house, retirement accounts, insurance plans, and other assets. Marriage gives you the choice to put together your financial issues. However, during or after the divorce, you must sort out any financial problem and plan ahead to live your life as an individual.

Emotional Issues

Emotional stress contributes to bad decisions during divorce. You need to have the right mindset and think logically to protect your best interests. Emotional support of your family and close friends can help. Negotiate with an open and practical approach. Now is not the time to blame each other. Holding on to past regrets will only create problems for you. If you suppress your hate and anxiety, you will find many workable solutions to the problem.

How to Keep Your House after the divorce?

You may want to keep the house after the divorce because of your attachment to home or its neighborhood. Kids might want to remain in the same school, or maybe you cannot afford a comparable property in the area. Whatever the reason may be, it is possible for you to keep the house after the divorce but you have to buy out your spouse’s share. It seems a daunting task, but you can do it if you are determined enough and do it systematically.

To keep the house:

1. Evaluate the price of the home
2. Negotiate with your spouse about his/her share
3. Arrange how you will pay other person’s share
4. Refinance the house.

Refinancing the house is not an easy option. There are associated costs. Furthermore, your income might not be enough to support you financially. However, if you have equity in the house and can arrange a 20% down payment, then it should be easier for you to get approved for a mortgage.

Quitclaim Deed Vs. Refinancing

Although someone may suggest you otherwise, QuitClaim Deed should be, a big no if the house is on a mortgage. Sure, if you sign a Quit Claim Deed, it will remove your ownership of the house, but the mortgage will still be in both of your names. It means you will be liable for the debt. Signing this deed also means:

• If your ex-spouse goes into default due to nonpayment, it will also affect your credit.
• If you want to buy a new house, this mortgage will reduce your chances of approval or your interest rate would be higher.
• Any future liens filed against your ex-spouse can be attached to the house. This situation will make selling it more difficult.

Due to the above reasons, it is not a good idea to sign a Quit Claim Deed.

How to Sell Real Estate during the divorce?

Receiving the Court Order

Selling real estate during divorce settlement is different from selling the house privately. You both must agree with the decision, and then you will need an enforceable legal contract to sell the house. The agreement will contain clauses relating to the final price of the home, mortgage documents, and the distribution of equity. You must also decide about property repairs and maintenance. You can also obtain a court order to sell the house if your spouse is not responding to your request. There are two viable options when you can use the court order.

1. A foreclosure is near, and you want to sell the house before the bank seizes your property. In that case, the court can issue an order to sell your home immediately.
2. You do not have any money to cover expenses related to the divorce. The court can order to liquidate your assets to pay the attorney fees and other costs.

Division of Marital Assets

In Texas, any asset that was acquired/gifted after the marriage will be considered a marital asset. However, unlike other states, the courts do not divide assets equally. It is going to be a ‘just & right’ division of assets. That means the breadwinner might get, a higher share of home equity. Similarly, a spouse with a professional degree and a nice paying job might get less than the other spouse who is making less or is without a professional college degree. Also, in cases of fault-based divorce, the court can decide to give all or a major portion of the estate to the spouse who is innocent. If your ex-has proved your fault (fraud, crime, etc.), then chances are he/she will get a significant percentage of home equity, and you will be paid the remaining. That is why we sometimes, hear the claim, ‘my spouse took everything we had.’

It pays to work with a competitive divorce attorney to protect your interest during the entire process. Contact us for more information.