How to Sell a Home During a Divorce in Texas?

Significant assets, like the house, are divided between the divorcing partners when a marriage ends. Selling your home during a divorce can be costly and complex in Texas. You should know how to proceed if you’re facing a divorce and need to sell your house. Our guide can help you learn more about your options as you navigate the sale of your Texas home and make the process easier.

Texas divorce laws allow equitable distribution of community assets, so the proceeds from selling a marital residence may not be split equally. In a Texas divorce, determining whether a home is marital or separate property can decide who gets the house. A court can force a sale in a Texas divorce, but it generally encourages spouses to agree about how to sell their residence. Buyouts, co-ownership, and splitting marital assets of equivalent value are alternatives to making a home sale during divorce.

Table Of Content

1. How Can You Sell Your House During a Divorce in Texas?
2. Who Gets the House in a Divorce in Texas?
3. Should I Sell before or after Divorce?
4. Who Gets to Stay in the Home During Divorce in Texas?
5. Alternatives to Selling During Divorce in Texas
6. Divorce House Sale in Texas Frequently Asked Questions
7. The Easiest Way to Sell a House During a Divorce in Texas

How Can You Sell Your House During a Divorce in Texas?

It can be complicated and costly to sell a house when you’re divorcing, so getting legal advice from divorce lawyers before you start is a good idea. You’ll need to determine if the home is a separate or community property before deciding if you want to sell it through a realtor, by the owner, or to an investor, and then divide the proceeds.

Here’s how you can sell your home during divorce:

Step 1: Find a Divorce Attorney in Texas

It’s possible, but not advisable, to get a divorce in Texas without hiring a divorce lawyer. The divorce process can be complex, so getting legal advice from a divorce attorney or lawyer specializing in family law is a good idea. Each spouse should hire a different attorney to prevent a conflict of interest.

Step 2: Determine Who Owns the Real Estate

In Texas, a seller must determine who owns the house before it can be sold during a divorce. Ownership factors into whether and how the home is sold and how the proceeds from the sale will be split. Over forty states, including Texas, divide assets according to a legal process of “equitable distribution,” so there may not be a fifty-fifty split.

Marital Property in Texas

Texas Family Code, Chapter 3, defines marital property rights and separate and community assets. Texas Family Code, Chapter 7, governs the division of assets in a divorce. The state establishes marital assets as community property that either spouse acquires while married, excluding separate property like personal gifts or property owned before marriage.

If both partners’ names are on the title of the family home or if the spouses purchased the home after they married, then the residence is a marital asset. If the marriage residence is sold during a divorce, the court will determine how to fairly and equitably split the sale proceeds.

Separate Property in Texas

Separate property that belongs to one spouse and is not typically subject to division during divorce. If a partner owned a home before they married or received it as a gift or inheritance during their marriage, it is considered to be separate.

Part Marital and Part Separate Property

According to Texas law, during a divorce, it’s presumed that the assets either partner owns are marital. The court determines if an asset is part marital and separate if there’s a dispute. For instance, if community funds were used to maintain or improve separate property in the spouse’s name, the community does not assume ownership but can be reimbursed for their contributions. Proportional ownership of valuable marital assets is determined by the rule of inception of title at the time the home was purchased. A house can also become community property when a spouse’s name is added to the title after the marriage begins. Ultimately, it is up to the courts to decide if a residence is a separate or community asset.

Step 3: Decide How You Want to Sell the Residence

When a divorcing couple wants to sell their residence, there are a few ways to proceed:

Hire a Real Estate Agent

In some cases, divorcing partners will jointly choose a real estate agent to sell the marital home. It’s usually prudent for the seller to document the realtor’s role in a signed settlement agreement. If the partners cannot reach an agreement, their lawyers may be able to find an appropriate solution. If the divorce goes to trial to determine equitable distribution, a court-appointed representative or judge will select a real estate agent to make the sale.

Local Cash Home Buyer

Many divorcing partners work with a Texas cash home buyer to bypass the hassle of figuring out who will pay for upgrades, repairs, staging, realtor fees, etc. A cash-for-houses company will buy the home from a seller in as-is condition after an assessment is made. This is the easiest way for a seller to sell a residence during a divorce. The deal can go through once both parties agree to sell their residence to a particular cash buyer in the area.

For Sale by Owner

In some cases, a seller can put their home up for FSBO. This can be a good option if a seller wants to forgo working with realtors and control the sale. Although the seller will avoid paying commissions, going this route may limit buyers’ access. A seller must coordinate and agree with their partner on the terms of sale when they sell their Texas residence, which may be hard to do during a divorce.

Step 4: Sell the House to a Cash Buyer

In Texas, the method you choose to sell your residence determines how quickly and easily the sale can go through. A cash home buyer can provide the fastest guaranteed sale because the seller won’t need to wait for buyers to acquire financing or deal with contract contingencies like appraisals and home inspections.

A seller who works with a realtor must work with their spouse to pay for repairs and decide how long to wait to find a retail buyer. Both spouses must agree that dealing with showings, open houses, contract contingencies, and agency fees while they wait to sell the marital residence is worth the potentially higher offer price. With Home Buying Hounds you sell your house in a couple of days without worrying about anything. You sell as-is! Meaning you don’t have to do repairs and can close in your schedule! Want to know more? Check out our home-buying process!

Step 5: Divide the Proceeds from the Sale

Since Texas is an equitable distribution state, a seller should not assume that the sale proceeds will be split equally. There may be additional considerations and fees to account for when the marital residence is sold, such as:

1. Property Taxes: Unpaid tax liens against the residence must be paid off.

2. Mortgage Balance: The remainder of the current mortgage balance must be paid off.

3. Foreclosure: Foreclosure can have long-term effects on your financial health. Refinancing, loan modifications, and assistance programs may help you keep your residence during divorce.

4. Debts: In Texas, with few exceptions, debts acquired by either spouse during the marriage are community property, so they will be considered when the court distributes marital assets.

5. Agent Fees: A real estate agent is likely to charge five to six percent of the sales price in agent fees in Texas.

6. Home Equity Line of Credit: If you and your partner took out a second mortgage on your residence, it must be paid off with the sale proceeds.

Who Gets the House in a Divorce in Texas?

In Texas, different factors determine who gets the house in a divorce.
Here are a few different examples that show what can happen:

One Spouse Purchased the Residence before the Marriage

If one spouse purchased a house in Texas before marriage, the house is generally considered separate property. In most cases, the spouse who bought the house will retain full ownership when they get divorced.

Both Partners Own the Home; One Wants to Sell

When partners purchase a residence together during their marriage, it becomes a community asset. If only one partner wants to sell the residence during a Texas divorce, a judge must rule who gets the home if the spouses cannot agree, so the spouse who wants to sell will be compensated. The couple will need to refinance their mortgage and remove the seller’s name from the account so that the seller will no longer be liable for the home. Also, the seller must typically refinance their equity portion since they are entitled to half.

Both Partners Own the Home; Neither Wants to Sell

When a residence is a community asset and neither partner wants to sell it, the court must decide how to divide it unless the spouses agree to co-own the house. Since Texas is an equitable distribution state, the court must account for all other assets before it decides what is fair for both partners.

Both Spouses Own the Home and Want to Sell It

When both partners own the marital home and want to sell it, they can agree to sell the residence.

If you want to sell your house during divorce in Texas, we can help you. We make the selling process smoother and quick. Want to know more about us? We had help tons of clients, we can help you too! Check what our clients are saying!

Should I Sell before or after Divorce?

With certain restrictions, a couple can sell their residence before or after their Texas divorce is finalized. It’s essential to understand how selling the house and splitting the proceeds before your divorce can affect your final settlement. If you sell your home without getting advice from a divorce attorney, it can affect the financial negotiation of your settlement or create serious legal problems.

If You Sell before the Divorce

In some Texas jurisdictions, an automatic temporary restraining order (ATRO) takes effect when a divorce is initiated. The ATRO protects both partners and maintains the status quo as the divorce progresses. If both partners agree to sell the home and put their intent in writing, Texas law permits the seller to proceed with the sale before the divorce is finalized. Usually, this means that both parties will sign a detailed document that governs the terms of sale, such as making recommended repairs, selecting an investor or real estate agent, and agreeing on the sales price and any adjustments to the cost.

If You Sell after the Divorce

If your residence is subject to equitable distribution, a judge will likely order the sale of the house and then divide the proceeds. If one partner wants to keep the house, they typically must negotiate an arrangement before the divorce trial takes place and the divorce papers are signed.

It’s also important to ask…

1. Is the sale urgent, or can both partners afford to wait to sell the house?
2. Does either partner want to rent or buy a new home immediately?
3. Does one partner pay most of the bills, or are both spouses making equal contributions before the sale?

If you consider selling your house in Texas but don’t know where to start, contact us (833) 997-7653. If you no longer want to be on a roller coaster of emotions and want to move on…We can buy your house during divorce in a couple of days, fill out our short form to start the process today!

Who Gets to Stay in the Home During Divorce in Texas?

In Texas, when a house is a community asset, and both partner’s names are on the title or deed, each spouse has an equal right to reside in the house until the divorce becomes final. The marital home is also expected to be awarded to the partner who takes primary custody of the children. When a spouse’s name is not listed on the title of a separate property house, they could be forced to vacate.

Alternatives to Selling During Divorce in Texas

Co-Own the House

A couple may continue to co-own a home after divorce if the housing market is unfavorable enough to make it difficult to sell. In this situation, the partners must agree on splitting the utility, maintenance, property tax, and insurance payments. They must also decide who will pay the bills and how they will occupy and use the property. Co-ownership helps couples who can wait for the housing market to improve before they sell, but it rarely works well if the divorce is acrimonious.

“Buy Out” the Other Spouse

If one spouse pays half the house’s market value to the other spouse, they can buy out the home to gain sole ownership and keep the house. If it’s too costly to pay cash, the buying partner may be able to refinance or use a home equity line of credit (HELOC) to acquire funds.

Buyouts can make life easier if your children attend a nearby school or one partner works there. They can be a simple way to split assets without forcing a significant family move.

Divide the Marital Assets

If selling the house, co-ownership, or buyout is undesirable, it’s possible to award one partner the marital residence. At the same time, the other spouse keeps the additional marital property of equivalent value. For instance, the partner who keeps the house would relinquish ownership of assets like stocks and bonds, retirement funds, cash, and vehicles. This only works when there are enough community assets to divide equitably. Dividing assets allows one spouse to keep the house without paying a lump sum.

Divorce House Sale in Texas Frequently Asked Questions

Can I sell the house before the divorce is final?

Typically, a seller can’t sell a house that is community property while their divorce is pending or if they are involved in a contested divorce. Standing orders usually prohibit either partner from transferring, selling, or disposing of assets, but exceptions exist. You can sell your home if you’re involved in an uncontested divorce and your partner signs a written agreement. Selling a house that might be considered a community asset before the divorce is finalized may be deemed fraud without a written agreement or court order.

How does capital gains tax work in a divorce?

Usually, spouses are not required to pay capital gains taxes on a house sold or transferred during a divorce settlement. The U.S. tax code Section 1041(a) states that the IRS will not recognize losses or gains on property transferred from one individual to a spouse.

How do I sell my house if one partner refuses?

If you and your partner cannot agree to sell the house, you may need to take the issue before a judge. Texas law dictates that the court could force a sale of the marital home, and the proceeds would be divided equitably between spouses.

The Easiest Way to Sell a House During a Divorce in Texas

Getting through a divorce is tough, and selling your Texas house while it’s happening can be complicated. You’ll need to consider the emotional toll it can take, care for yourself, and remember that all of your assets will be reviewed by the court during the proceedings. These findings apply to all cities and counties in Texas, including Fort Worth, Garland, Denton, Arlington, Houston, Austin, San Antonio, Dallas, and more! Since everyone’s situation is different, it’s essential to understand how selling your house will affect you during divorce before you make a final decision.

When you are going through divorce proceedings and want to sell your house quickly, an honest, professional cash home buyer can help. Selling your house for cash to Home Buying Hounds is hassle-free. Our business buys houses and mobile homes as-is, so you won’t need to make repairs, pay fees, or wait to find the right buyer. Still have questions? No worries! We are here to address your real estate concerns.

If you want to learn more about how to sell your home for cash to our courteous team, call us (833) 997-7653 or fill out our form below.

Give Us A Call Now At (833) 997-7653