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Dividing property in Texas divorce a complicated affair

Tuesday, June 27, 2017

Dividing property can be one of the most troublesome aspects of a marriage dissolution, and not for the reasons some might believe. Yes, a Texas divorce involves splitting marital property, but depending on local and state laws, there can be a number of unforeseen costs that accrue if both spouses do not have a plan to divide their assets ahead of time. This logic obviously applies to assets like savings, but it also applies to physical real estate.

If both spouses in a divorcing marriage are interested in selling jointly owned property and splitting the proceeds thereof, the math is somewhat simpler -- the total profits from the sale are divided based upon the agreement set out when the sale process begins. However, couples must agree on a listing price and also determine whether the proceeds will be distributed or escrowed. This can become even more complicated if the house is not expected to fetch a profitable price on the market.

Things become even more complicated than that if one party wishes to keep the home. This process can involve refinancing, home appraisals, and possible equity payments. If a mortgage is outstanding on the property, the math may quickly outpace either spouse's individual ability to calculate a fair settlement.

It is unavoidable in a Texas divorce that the parties will accrue assets of some type, and quite often those assets can at least partially take the form of shared property. Couples facing a divorce that involves a home are urged to seek out support in determining their best course of action. This is the surest way to achieve a fair division of any profits or outstanding debt.

Source: Reuters, Splitsville? How to divide property in a divorce, Geoff Williams, Oct. 7, 2013

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