Texas couples who decide to get a divorce may own a home that will need to be divided along with the rest of their property. Some couples may want to sell the home and split the profit, but in other cases, one person might want to keep the home. However, it is important to determine whether this is an affordable plan.
Shared assets must be divided equally in a Texas divorce. In some cases, this might include a family business. Couples who get along may opt to keep running a business together after the divorce. More often, the business will be sold.
A home is likely the most valuable asset that individuals in Texas and the rest of the country own. Therefore, it is not uncommon for a marital home to become a point of contention in a divorce. However, even if a person wins the home in the final divorce settlement, it doesn't mean that he or she can afford to live there. In some cases, the terms of the mortgage will not change after one spouse moves out.
Of all of the possessions and types of property that can be jointly accumulated during a marriage in Texas, the most significant one is often the marital home. It's also likely to be a source of contention between couples. But there are times when one spouse offers to sell their share of the property to the other one. Even when such a move is made in good faith, there are some potential pitfalls associated with assuming sole ownership of a home that was once jointly shared.
Divorce among older couples is becoming more common in Texas and across the U.S. In fact, while divorce rates have stabilized for all other age groups, it has doubled over the last few decades for people ages 50 and over. Unfortunately, this phenomenon, known as gray divorce, can wreak havoc on retirement plans if assets are divided up incorrectly.
Texas residents who inherited individual retirement accounts could possibly lose funds when it comes to property division in a divorce. New tax laws, which change the rules for awarding alimony, are silent on this as is the Internal Revenue Service, nor have there been any court rulings. Some people are using inherited IRA funds to offset the lost alimony deduction under the new tax laws.
When couples in Texas plan to divorce, the financial repercussions of the end of the marriage can often be equally or even more profound than the emotional complications. The division of marital property can lead to significant changes in how both former partners live their lives. It is important to understand how property division works in a divorce, especially because Texas is only one of nine states across the country that uses a community property system to divide assets after a split.
When Texas parents decide to divorce, some of the most challenging aspects to deal with can include handling the division of property, including the marital home, as well as child custody issues. Many divorcing parents want to do everything they can to help reduce the emotional burden on their children. Not only is the marital home often one of the largest assets handled in the divorce, but it can also be one of the most emotionally meaningful items for the family, especially children.
One of the first issues that Texas couples going through a marital split must face involves where to live during and after the divorce. Unfortunately, the timing usually coincides with the most emotionally turbulent period of marital dissolution. Judgment can be impaired by emotions and other distractions accompanying such a major life change. Divorcees must weigh logistical, emotional, and financial implications in order to make the best arrangements for themselves and their children.
Texas residents may feel like the best option is to keep a marital home after a marriage ends. However, this may not be the best choice from a financial perspective. For many, it may be difficult to pay a mortgage, property taxes and other expenses related to a home on a single income. Those who manage to pay those bills may not have anything left over to save or for emergencies.