Deciding Whether to Sell Your Home in a Divorce

When facing a divorce and contemplating the fate of your shared home, it’s essential to understand the distinction between changing the title to the property and modifying the mortgage. While altering the title can be a relatively straightforward process through a deed transfer, removing a name from a mortgage is considerably more complex, typically requiring a complete loan refinance. This refinance process hinges on your spouse’s ability to qualify, making it a critical factor to consider when deciding the home’s future in divorce proceedings.

Appraisals and Expert Assessment

Determining your home’s value plays a pivotal role in the decision-making process. I strongly recommend seeking professional appraisal services instead of relying on informal sources like past neighborhood sales or county appraisal estimates. Attempting to estimate your home’s value without the expertise of a licensed real estate agent or experienced appraiser can lead to inaccurate assessments. Investing in a professional evaluation ensures a more accurate understanding of your property’s market worth, safeguarding your interests during divorce negotiations. Just as you wouldn’t hesitate to hire an expert to work on your car, entrusting the sale of your most valuable asset to a qualified appraiser is a wise choice.

Share or Shoulder Home Sale Costs After Divorce

Once your divorce concludes, you face a crucial decision regarding the sale of your home. While it’s understandable that many parents want to maintain stability for their children by keeping the house, it’s essential to consider the practicalities. Delaying the sale and insisting on staying in the house may seem like a reasonable choice, but it’s crucial to weigh the long-term implications.

Selling the house shortly after the divorce can be emotionally challenging, but it may ultimately be a more prudent decision. By selling the property together with your spouse, you can evenly distribute the closing costs, real estate agent fees, and other expenses associated with the sale. This approach allows you to share the financial burden rather than shouldering it yourself in the future. Additionally, in the current strong housing market, selling sooner rather than later may protect you from potential market fluctuations down the road. Therefore, while it may be difficult, opting for a timely sale could prove to be a more financially sound choice in the long run.

Signing a Deed of Trust to Secure Assumption

Emphasizing the crucial role of a Deed of Trust in situations where you leave a home with a mortgage in your name is imperative. When both you and your spouse are listed on the mortgage and an agreement is reached for your spouse to continue residing in the home post-divorce, this scenario can pose significant liability concerns from your standpoint.

Even if your spouse commits to including language in the Divorce Decree, guaranteeing their timely and full loan payments, it remains imperative not to conclude your divorce without your spouse signing a Deed of Trust to Secure Assumption. This document essentially grants you the ability to foreclose on your spouse if they fail to make the mortgage payments over time. By stepping into your spouse’s role, you can settle the note and gain possession of the home.

It’s essential to remember that if your name remains on the home mortgage and your spouse neglects their payment obligations, this situation can hinder your ability to purchase your own home in the future. Moreover, your credit report will reflect the home loan, adversely affected by your spouse’s failure to fulfill their commitment to repay the loan.

Strategic Home Sale Planning: Keeping the Kids Until Graduation

In some divorce cases, parents make the decision to let one spouse stay in the family home to ensure their children remain zoned for a specific high school until graduation. If you and your spouse are considering such an arrangement, it’s essential to outline a clear plan within your divorce decree.

Specify in the decree that upon the graduation of your youngest child from high school, the house will be listed for sale with the assistance of a licensed realtor. While it’s not possible to set a precise “sell by” date, you can establish a “list by” date. Additionally, you can negotiate the terms related to mortgage payments, home equity loans, property taxes, and other pertinent matters with your spouse and have these terms documented in your final divorce decree. This approach ensures that there are no lingering uncertainties regarding the house’s future as your children complete their high school education.

Exploring Homeownership After Divorce

In tomorrow’s blog post, I will delve into the crucial aspects of purchasing a home following the conclusion of your divorce. Additionally, we will introduce the significant financial consideration of retirement savings in your post-divorce life. This essential topic will continue to be covered in the upcoming days.

If you have any inquiries about divorce or family law in the interim, please feel free to reach out to the Law Office of Bryan Fagan, PLLC. We provide complimentary consultations with licensed family law attorneys six days a week to address and clarify any specific questions you may have.

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Bryan Joseph Fagan( Attorney )

Bryan Fagan, a native of Atascocita, Texas, is a dedicated family law attorney inspired by John Grisham’s “The Pelican Brief.” He is the first lawyer in his family, which includes two adopted brothers. Bryan’s commitment to family is personal and professional; he cared for his grandmother with Alzheimer’s while completing his degree and attended the South Texas College of Law at night.

Married with three children, Bryan’s personal experiences enrich his understanding of family dynamics, which is central to his legal practice. He specializes in family law, offering innovative and efficient legal services. A certified member of the College of the State Bar of Texas, Bryan is part of an elite group of legal professionals committed to ongoing education and high-level expertise.

His legal practice covers divorce, custody disputes, property disputes, adoption, paternity, and mediation. Bryan is also experienced in drafting marital property agreements. He leads a team dedicated to complex family law cases and protecting families from false CPS allegations.

Based in Houston, Bryan is active in the Houston Family Law Sector of the Houston Bar Association and various family law groups in Texas. His deep understanding of family values and his professional dedication make him a compassionate advocate for families navigating Texas family law.