Divorce changes many parts of your life, and dividing property can be challenging. If you and your spouse own a home together in Texas, figuring out what to do with the mortgage takes some thought. The right choice depends on your situation and what you want to achieve.
How does a divorce decree affect a mortgage?
In Texas, a divorce decree can give the marital home to one spouse. However, it does not automatically remove the other spouse’s name from the mortgage. You still owe the lender, even if the divorce decree says otherwise. Here are important points:
- Community property: Texas treats assets gained during marriage as equally owned by both spouses
- Division of property: Community property gets divided fairly during a divorce. The court might make one spouse take on the mortgage depending on the financial situation
- Liability to the lender: The divorce decree only affects you and your ex. It does not change what you owe the lender, who is not part of the divorce.
- Refinancing: You can refinance to remove your ex’s name from the mortgage, which makes you the only one responsible for the debt. You must refinance the mortgage to remove your ex’s name and take full responsibility for the debt.
If you cannot qualify for refinancing on your own, consider other solutions. Discuss with your former spouse and seek legal guidance to modify your divorce decree to account for this situation.
Other possible resolutions may include:
- Co-ownership: Continuing to co-own the property with your former spouse, with a written agreement outlining responsibilities for mortgage payments and maintenance.
- Selling the home: Selling the property and dividing the proceeds, using a portion to pay off the existing mortgage.
- Alternative financing: Exploring alternative financing options with the help of a mortgage professional.
These solutions may require agreement and compromise between you and your former spouse. If disagreements arise, seeking legal counsel can help.
Why you should consider counsel after a divorce?
Property division and mortgage responsibilities can create problems long after the divorce is final. When your situation becomes more complicated, or the stakes are high, consider speaking with someone knowledgeable about family law. This can provide you with clarity regarding your legal rights and available options so you can move forward with confidence.