If you are going through a divorce in Dallas, you may be wondering whether to sell your house.
Your house is probably one of your most valuable assets, as well as a place full of memories and emotions.
It can be hard to decide whether to keep it, sell it, or transfer it to your spouse.
My name is Scott, and I’m a real estate investor with a decade of experience working and investing in Dallas.
In this blog post, we will explore how to deal with your house in divorce.
We will also discuss whether you should sell your house during your Dallas divorce.
Legal Considerations
When the term “property” is used, most people are talking about real estate.
But in the legal world, “property” is a term that includes bother “personal property” and “real property.”
Personal Property includes things like your car, laptop, clothing, etc. while “real property” is land, improvements, and rights associated therewith.
The division of property outlined in the Texas Family Code (Chapter 3) includes both personal property and real property.
Texas is a “community property state” where property of either spouse is presumed to be owned in common.
This means that virtually all property acquired during the marriage is owned jointly by the two spouses.
If one spouse is going to prove that an item is “separate property“, then it must be owned before marriage or acquired during the marriage as a gift, through inheritance, or as part of a personal injury settlement.
Since there is a “presumption” that any property owned by the married individuals is community property, proving that something is separate property can be burdensome.
Unless your house can clearly be proved as separate property, then the house is community property that will be divided with “a just and right” division.
5 Ways to Deal With Your House in Divorce
The court’s job is to divide all assets of the marriage (including your house) between the divorcing parties.
But how does the court divide up something like a house?
You can’t just cut it in two halves.
On a basic level, either the house must be sold, or one of the parties will keep it.
Below are some more detailed variations on how this might happen:
Option 1: Sell the house and divide the proceeds
Most commonly, the couple in a Dallas divorce sells the house and split the proceeds.
This can be a good option if neither of you wants to stay in the house.
It can also be a good option if neither of you can afford to keep it on your own.
Selling the house can also help you close this chapter of your life and move on to a new one.
However, selling the house also has some disadvantages.
For one thing, if you use a realtor, you will have to pay for commissions, closing fees, repairs, and staging.
These can eat up a significant portion of your profits.
You might also have to pay capital gains on the house if you haven’t lived there very long.
Additionally, selling your house in the traditional way can take a long time.
You may have to wait for months (perhaps 101 days or more) before you find a buyer.
While you wait, you’ll have to pay all the “carrying costs” (mortgage, taxes, insurance, utilities, etc.).
An alternative to selling with a realtor is to sell to an investor who will be able to operate on a quicker timeline.
Option 2: Transfer the title to one spouse and refinance
Another option is to transfer the ownership of the house to one spouse.
The spouse who keeps the house would refinance any remaining debt in his/her individual name.
This can be a good option if one of you wants to keep the house.
Transferring the title can also help you avoid paying capital gains tax on the sale of the house.
However, transferring the title also has some drawbacks.
First, you will have to agree on how much the house is worth and how much equity each of you has in it.
You may need to hire an appraiser or a real estate agent to help you determine these numbers.
Also, refinancing the house under one spouse may be difficult.
For one, interest rates are extremely high relative to the last few decades.
You may find that your mortgage payment triples or quadruples after a refinance.
Qualifying for the refinance as an individual with only one income and credit score may also prove challenging.
Refinancing will also have its own closing costs with the issuance of new debt.
Option 3: Keep the house with its current sole owner
If one of you already owns the house as separate property, you may decide to keep and not include it in the division of marital assets.
However, keeping the house as separate property also has some risks.
You will have to prove with clear and convincing evidence that the house is separate property and not community property.
This is because Texas is a “community property state” as we discussed earlier.
You’ll have to prove how you acquired the house and maintained it as separate property.
Option 4: Continue sharing the home
A less common but possible option is to continue living in the same house with your spouse after the divorce, either as co-owners or as tenants in common.
This can be a good option if you want to minimize disruption for your children or if you want to wait for a better time to sell the house.
However, this option has some glaring issues that probably go without saying.
There is probably a good reason you are divorcing your spouse.
Living with this individual is unlikely to be…harmonious.
You will also have to agree on how to share the costs and responsibilities of maintaining the home.
Option 5: Let a judge decide
If you and your spouse cannot agree on what to do with your house, you may have to let a judge decide for you.
However, this process can be long and expensive.
Hiring lawyers, experts, and witnesses is not cheap.
You will also have to abide by the judge’s ruling, which may not be in your favor or meet your expectations.
You will also have to surrender control of your circumstances to a stranger, hoping he/she knows best.
Why selling house in divorce to a cash buyer might be the best option
There are many options for dealing with your house during divorce, and each has its own pros and cons.
However, the most expedient and simple way to deal with your house in your Dallas divorce is to sell your house to an investor like me.
Selling to a cash buyer means that you can sell your house fast, as-is, and for a fair price.
You don’t have to worry about listing, showing, or negotiating with buyers.
You’ll never pay any commissions, fees, or repairs.
You don’t have to wait for months or years before you can close the deal.
Whether you need the money, want to avoid the hassle, or just want to move quickly to a new chapter in your life, I can help you achieve your goals.
Give me a call or text at the number below, and let me see if I can help!
Don’t let your house hold you back from moving on with your life after a divorce.
