When you and your Texas spouse buy a home together, amass equity in that home and then split up, you have to figure out what to do with that once-shared home and the equity you now have. There are several different ways to handle this, and one of the first things you need to figure out is whether you or your one-time partner want to stay in the home. Having that decision nailed down should help steer the rest of the process.
According to NerdWallet, many people ending their marriages choose to handle the equity they have in their homes in one of the following ways.
By selling the house
If neither you nor your former partner wishes to keep the family home, this gives you an opportunity to make a nice, clean break from one another. You have the option of selling the home and then dividing any profits you make on the sale between you.
By refinancing the mortgage
If you or your ex want to remain in the home you once shared, that party needs to qualify for a new mortgage without the help of the other party. Then, whoever keeps the home may buy out the other spouse’s share. Whether this is going to be an option depends on how much income and assets the spouse wanting to keep the marital home has to his or her name.
In some situations, market conditions or interest rates may have you thinking twice about selling the home or refinancing your mortgage. In this scenario, you may need to think about sharing the home, or splitting time in the home, until things get better.
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