It is no secret that finances are among the most contentious issues in any divorce. Texas residents know this contention can be exacerbated by the price of a particular piece of property -- the bigger the ticket, the more challenging division of property can become. Sadly, this can be true both before and after a divorce, which is why it is so important for individuals to be aware of their rights and responsibilities under state law ahead of time.
With a large-ticket item like a home, things can be even more complicated since, quite often, one or both spouses are living in the property. If the couple is separated but not formally divorced, it can complicate things for a spouse wanting to move forward with purchasing a new domicile. In the eyes of the law, they still have an obligation to the former property under those circumstances.
Additionally, even after a divorce is complete, this can still be an issue. If the spouse who keeps the home is unable to refinance to the point where the other spouse can walk away with no strings, this can cause problems for the other spouse. It can influence credit reports and scores moving forward if a former spouse defaults on payments on a property still technically owned by two individuals.
Dealing with division of property can quickly become a complicated endeavor, both here in Texas and elsewhere around the nation. Seeking support in determining a best course of action before the divorce, based on the finances of both parties, can be beneficial in preparing for the legal separation. As usual, foreknowledge can make all the difference in the world.
Source: foxbusiness.com, "How to Divide Your House in a Divorce", , July 14, 2014