Determining what to do with marital assets during a divorce is one of the many issues separating couples have to address. Individuals living in Texas who are considering getting a divorce may benefit from knowing what type of expensive housing mistakes can be avoided.
Divorcees have three general options to consider when deciding what to do with a home. One spouse can purchase out the other, the property can be sold and profits divided or ownership of the home can be retained. Regardless of which option is chosen, individuals should be aware of the potential financial ramifications.
When selling a home, individuals should take steps to ensure that they are maximizing the price of the home. The allocation of the proceeds may not be equal as the terms of the divorce settlement, who paid the original down payment and property laws may factor in the ultimate split. When purchasing a new home, divorced individuals should ensure that the home can accommodate their new situation.
If one party decides to buy the other out, the buying party has to be sure he or she will be able to meet the monthly financial obligations on one salary. The party who is being bought out may be able to seek a new dwelling with the funds received; however, he or she should know that a majority of lenders will hold all co-signers liable for the mortgage if the loan is not refinanced.
A family law attorney may help a divorce client resolve issues, such as property division. The attorney may advise on the pros and cons of maintaining ownership of certain types of property and could negotiate or litigate to ensure that a client’s rights are protected.