Selling a House During Divorce in San Angelo, Texas

Yes, it may be possible to sell a house during a divorce in San Angelo, Texas. However, whether you can sell the property and how the sale should be handled depends on factors such as ownership, homestead rights, mortgage obligations, agreements between the spouses, and any court orders in the divorce case. 

Divorce can be difficult, and it often comes with the pressure of making a lot of difficult decisions, including financial ones. One such big decision is handling the family home.

If you own a property in San Angelo, you may be wondering whether selling a house during divorce is possible or whether you have to wait until the whole divorce process is completed.

The good news is that selling a house during a divorce is possible in Texas. However, there are many important legal and financial factors to consider before you put the property on the market.

Here is what to know about divorce and selling a home in San Angelo.

Selling House During Divorce: What Texas Homeowners Should Know

Selling a house during a divorce is not prohibited, but it can sometimes be a practical and effective way for both spouses to separate their financial interests. If the property is the spouses' homestead, Texas law generally requires both spouses to join in a sale, subject to applicable exceptions. Other ownership and court-order issues can also affect whether and how the property may be sold.

Texas generally treats property acquired during marriage as community property, although certain property may be separate property depending on when and how it was acquired, such as certain property owned before marriage or received as a gift or inheritance.

Texas has specific rules concerning homesteads and property owned by married couples. If the property is the marital homestead, both spouses need to join in a sale. There can also be restrictions on transferring property once a divorce case has been filed.

For that reason, before selling a house during a divorce, speak with your divorce attorney and confirm what you are permitted to do.

What Happens to the House in a Divorce?

One of the biggest questions during a divorce is what will happen to the family home. Well, there are various possibilities depending on the circumstances and the divorce agreement.

• The house is sold through a traditional listing: Both spouses agree to list the property, accept an offer, and divide the remaining equity according to their agreement or court order after the mortgage and applicable selling expenses are paid.

• The house is sold for cash: A cash sale may be another option, particularly if the property needs significant repairs or the spouses want to avoid a traditional listing.

• One spouse keeps the house: One spouse may remain in the home and compensate the other for their share of the equity, either with cash or through other marital assets.

• The house is sold later: If the spouses cannot agree on a sale during the divorce, they may decide to wait until the divorce is finalized, provided this is consistent with the court's orders.

• The court decides: If the spouses cannot agree, the court may address the property's disposition as part of the divorce proceeding, subject to the applicable law and circumstances of the case.

Do I Have to Sell My House in a Divorce?

It is not mandatory to sell your house during a divorce. It's only one of the possible solutions. If you don't want to sell the house, there are various other ways to handle the situation.

If one spouse wants to remain in the home, the couple may agree for that spouse to keep it. The partner keeping the property may compensate the other spouse for their share of the equity using other marital assets as part of the overall settlement.

Refinancing may also be necessary if both spouses are currently listed on the mortgage. A divorce agreement or decree may assign responsibility for mortgage payments between the spouses, but that does not necessarily change the terms of the existing loan or release a borrower from obligations to the lender. Ask your attorney and mortgage lender how the loan will be handled.

If selling is the preferred option, a cash house buyer may be worth considering, especially if the property needs repairs. A direct buyer may also purchase a property in its current condition, which can be an option when making extensive repairs before a sale is impractical.

There is no right answer to what to do with the house if not selling. It all depends on the home's equity, the mortgage, each spouse's financial situation, and the terms of the divorce settlement.

How to Sell a House During a Divorce

If both spouses agree that selling the home is the right choice, having a clear plan can make the process much easier.

Agree on the Decision to Sell

Ideally, both spouses should agree that the property should be sold before it is put on the market. If they disagree, the attorneys or the divorce court may need to resolve the issue.

Determine the Home's Value and Equity

Get a realistic idea of the property's current market value and subtract the remaining mortgage, liens, and expected selling expenses. If you're considering a cash sale, take time to research local cash-home-buying companies and compare their offers, fees, closing timelines, and terms

Decide How the Sale Proceeds Will Be Divided

Before accepting an offer, make sure there is a clear understanding of how the net proceeds will be handled. This may be included in the divorce settlement or addressed through a court order.

Complete the Sale With the Proper Legal Approvals

Make sure all required parties sign the necessary documents and that the transaction does not violate any temporary orders or other court restrictions.

Taking these steps early can reduce disagreements and prevent unnecessary delays.

Final Thoughts

Selling a house during divorce in San Angelo, Texas, is possible, but it should be handled carefully and professionally. You may be able to sell the property while the divorce is pending, but ownership rights, the property's classification, court orders, mortgage obligations, and the division of the proceeds all need to be considered.

Whether you decide to sell through a traditional listing, pursue a direct sale, or wait until the divorce is finalized, get the legal and financial details sorted out first. With a clear plan, selling a house during divorce can be a manageable part of moving forward.

FAQs

1. Can you sell a house during a divorce in Texas?

A home can potentially be sold while a Texas divorce is pending, but the process depends on factors such as ownership, homestead rights, agreements between the spouses, and any temporary or other court orders. Before listing or accepting an offer, both spouses should discuss the property with their divorce attorneys and confirm what is permitted in their circumstances.

2. Do both spouses have to agree to sell a house during a divorce in Texas?

If the property is the spouses' homestead, Texas law generally requires both spouses to join in a sale, subject to applicable exceptions. Other ownership circumstances and court orders may also affect the transaction. Because the specific facts matter, homeowners should confirm the requirements with a qualified Texas attorney before proceeding.

3. What happens to the money from selling a house during a divorce?

The amount available after paying the mortgage, liens, and applicable selling expenses is generally the home's net proceeds. How those proceeds are ultimately divided depends on the spouses' agreement, applicable property rules, and any court orders. The attorneys handling the divorce should determine how the proceeds should be addressed in the settlement or court proceeding.

4. Can one spouse keep the house instead of selling it during a divorce?

Yes, keeping the home can be an alternative to selling it. Depending on the circumstances, one spouse may retain the property while the other receives an agreed share of the home's equity or other marital assets. The mortgage also needs to be considered because transferring ownership or assigning payment responsibility does not necessarily change the lender's rights.

5. Can I sell a house as-is during a divorce?

An as-is sale may be an option if the spouses decide to sell and the property needs repairs. A direct buyer may be willing to purchase the home in its current condition, potentially avoiding the need for extensive repairs before closing. However, the spouses should first make sure the proposed sale is permitted under their divorce agreement and any applicable court orders.