The Collin County Law Group
It Is Getting Easier to Retain the Family Home in A Divorce
In Texas, many spouses struggle to remain in the marital home after a divorce due to the high cost of real estate. Even if they are able to negotiate or win the right to stay, they may simply not be able to afford it. However, changing market conditions may actually make it easier to accomplish this goal.
Staying in the marital home will require that the remaining spouse buy out the other spouse’s share of the home. This is expensive and difficult when real estate values are surging. It may even mean that the spouse exhausts all of their financial reserves to make the payment. However, falling real estate values due to the economic uncertainty actually present an opportunity for the spouse. The monthly mortgage payment may be getting cheaper as well due to the opportunity to refinance at interest rates that have fallen to an all-time low.
Owning real estate can not only put a roof over someone’s head, but it can also be a favorable investment opportunity. Home prices historically go up even if there are some bumps in the road. However, a spouse must take care not to over-concentrate their investment into real estate so that they can diversify their portfolio. They must also ensure that they will be able to afford the house in the future as their own economic situation changes.
Remaining in the family home can often require delicate negotiations with the other spouse who may not want to give up their right to their residence. A divorce attorney could help their client handle this and attempt to work it out with the other spouse through the divorce agreement. If not, they may represent their client in court in front of the judge who would make the ultimate decision about the home.