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When a couple decides to end their marriage, it is only the beginning of a series of gut-wrenching challenges—such as figuring out what to do with the marital home.
Marital property, such as the house, must be legally divided during a divorce. If severe financial problems are a contributing factor to the couple’s breakup, it is highly likely that house payments are overdue. The bank may be threatening the couple with foreclosure or may have already started the process.
Splitting marital property is never easy when it comes to the house. Selling the family home may be out of the question for one spouse, while the other spouse can’t wait to get their cash out of the home’s equity. If both spouses can’t agree about dividing real estate in their divorce property settlement, a judge may force a sale.
If your ex partner gets your jointly owned house, your name is removed from the deed. But without refinancing, your name remains on the mortgage. And you continue to be responsible for any payments missed by your ex-spouse.
When separating assets requires the selling of the family home, there may not be time for a traditional sale. If you need a quick sale, Sell My House Fast Houston TX is your best option. We are the most experienced real estate investor in Houston, Texas, and the surrounding area.
Our name describes our way of doing business. We do everything quickly—from giving you a fair cash offer to closing the deal with cash in your hand. You sell your house to us in 3-30 days, typically.
We buy your house AS IS. When you sell to us, you really can walk away from the property and all of its problems. We buy houses in any condition.
Our offer is a cash offer. At the closing, we pay you in cash. And you won’t be surprised by any deductions. We take care of all the costs, and you get all of the cash specified in your offer.
Besides taking the house AS IS, we take care of any debts the property may have. And you don’t have any responsibility for paperwork. In addition to negotiating with any creditors, we even negotiate with the ex-spouse on any house issues.
A Chapter 13 bankruptcy temporarily stops foreclosure proceedings. The homeowner has a limited amount of time to request a loan modification or to sell the property. Please note: if the terms of the mortgage continue to be violated, the lender can resume foreclosure proceedings.
A short sale occurs when a property sells for less than the outstanding loan amount against it. In a few states, the lender must release their lien on the property when agreeing to the short sale. But in most states, the lender can go after the homeowner for a deficiency payment, if they so choose.
For example, your ex is about to let the house they got in the divorce decree go into foreclosure because of delinquent payments. And your name is still on the mortgage.
You have the right to seek a short sale, even though your name is not on the deed. If your ex does not cooperate, you must file a partition lawsuit.
The divorced couple must consider capital gains tax on the equity in any real estate jointly owned.
Any equity in rental property is subject to capital gains tax only when the property is sold to a third party. Giving or receiving rental property as a part of the property settlement in not generally a taxable event.
A tax deduction for marital home equity up to $500,000 is available to a couple who file a joint return. (To qualify, the divorce cannot be finalized before the end of that tax year). The tax deduction is $250,000 per spouse after the divorce.
Texas is a community property state. In a community property state, a house bought during the marriage is considered jointly owned (but a home received as a gift or an inheritance during the marriage is viewed as separate property.)
An ex-spouse cannot unilaterally sell a jointly owned home without the permission of the other party—neither can the house be put on the market.
If the deed states that the property is owned as tenants in common, each ex-spouse owns their part of the house separately. For example, one party may own 40% and the other party 60%. Each party is free to sell their portion of the property without permission of the other spouse. But a buyer willing to purchase a part of a home under such circumstances is rare.
Without your ex-spouse’s consent, you can force the sale of the marital home by filing a partition lawsuit. But you must have a good reason for the suit, or the court will dismiss your case. Also, partition lawsuits are costly.
The court looks favorably on partition lawsuits filed to protect against a foreclosure after divorce. They will likely force a sale if you can prove that your ex can’t keep up the joint mortgage payments, which hurts your credit score.
If an ex-spouse can’t or won’t refinance or assume the loan (which should be specified in the settlement), you need to get your name off the mortgage as soon as possible. Even if the mortgage is in your name only, contact an attorney who can initiate the legal process necessary to force the sale of the house. The court will not know about any settlement violation unless a complaint is brought forward.