When you own a home with your spouse in Texas and the two of you decide to split, you need to figure out what to do with any home equity you have amassed since purchasing the property. There are a number of ways you might do this. The option that may benefit you most is going to depend on the housing market in your area and whether either of you wants to stay in the home, among other variables.
According to NerdWallet, regardless of how you decide to split your home equity, an important first step in the process is determining how much your property is worth. It may serve you well to have both you and your ex-order appraisals so that you get an accurate picture of the home’s value. Then, you might decide to split the equity in one of the following ways.
By selling the home and splitting the profits
If market conditions are favorable, selling your home, paying off your mortgage and splitting what remains gives you both an opportunity to make a clean break from one another.
By having one of you refinance the mortgage
If you want to keep the home and your former partner does not, or if things are the other way around, the one who wants to stay might try to qualify for a new mortgage on his or her own and buy out the other party.
In some cases, the housing market may have you wanting to wait before listing the home. In this case, and particularly if you have kids together, you may decide to take turns staying in your former marital home until conditions improve.