How Divorce Affects Selling A House In Texas

Going through a divorce is never easy, and when you add the complexity of selling a house to the mix, it can feel overwhelming. If you’re navigating this challenging time in Texas, you’re not alone—and there are clear paths forward that can help you move toward your fresh start with confidence.

At Leap Properties, we’ve helped countless Houston-area families successfully navigate property sales during divorce proceedings. While every situation is unique, understanding your options and rights under Texas law can make all the difference in achieving a fair outcome for everyone involved.

Common Challenges and Practical Solutions

Below are some common questions we have received over the years and some answers we can provide to give you some insight. We are a house buying company, and not lawyers so don’t take this as legal advice.

“Is a house bought before marriage still separate property if sold during divorce?”

Texas is a community property state, which means that generally speaking, any property acquired during the marriage belongs equally to both spouses—regardless of whose name is on the deed or who makes the mortgage payments. This includes your family home, even if only one spouse’s name appears on the title.

However, there’s an important exception: if you owned the house before getting married, it may remain your separate property. That said, if your spouse contributed to mortgage payments or major renovations during the marriage, they might have a claim to part of the equity. The key is proper documentation and understanding how commingling of assets affects ownership rights.

“What if our house won’t sell or takes years to sell?”

One of the biggest concerns we hear is: “What if our house sits on the market for months or sells for less than we hoped?” This worry often keeps couples stuck, continuing to share mortgage payments while living separately. If your property isn’t selling quickly, consider these strategies:

Lower the asking price: While difficult emotionally, pricing competitively often leads to faster sales and may ultimately net more money than holding out for a higher price.

Rent out the property: This can provide income to cover mortgage payments while waiting for market conditions to improve. However, both spouses must agree to become landlords, and you’ll need to address maintenance responsibilities and rental income division.

Revisit buyout negotiations: Market delays might make a buyout more attractive to one spouse.

Address ongoing costs: Determine who pays mortgage, insurance, utilities, and maintenance during the extended listing period. Document these agreements in writing.

Professional cash buyers: Companies like Leap Properties can often close quickly, eliminating the uncertainty of traditional market sales

“How do I calculate a fair buyout amount?”

Many couples consider having one spouse buy out the other’s interest. The key question is: how much equity should be used in the calculation?

Texas courts typically use the equity value at the time of separation, not current market value. However, this can vary based on your specific circumstances and divorce agreement.

The buyout calculation typically involves:

1. Determining current market value: Get an appraisal or comparative market analysis
2. Calculating equity: Subtract outstanding mortgage balance and any liens
3. Deciding the valuation date: Texas courts often use the date of separation rather than final divorce decree
4. Considering selling costs: Some agreements deduct estimated realtor commissions and closing costs from the equity calculation, even in buyouts

Example: If your home is worth $400,000 with a $250,000 mortgage balance, your equity is $150,000. If splitting 50/50, each spouse’s share would be $75,000. However, if you deduct estimated selling costs of $30,000, the buyout amount might be $60,000.

“My ex refuses to sign documents or pay the mortgage—can I force a sale?”

Perhaps one of the most frustrating situations occurs when an ex-partner won’t agree to sell or sign necessary paperwork. The good news is that if you’re both on the deed, neither spouse can sell the property without the other’s consent—protecting you from below-market sales made in spite.

If cooperation isn’t possible, Texas courts can order a sale through a partition action. While this involves legal proceedings, it provides a definitive path forward when negotiation breaks down.

When one spouse is uncooperative, you have legal options:

Consult with a divorce attorney: They can petition the court for orders compelling cooperation or authorizing one spouse to sign on behalf of the other.

Request a court-ordered sale: The judge can order the property sold and appoint a receiver if necessary.

Seek injunctive relief: If you suspect your spouse might try to sell the property without consent, you can seek a court order preventing this.

Document non-payment: Keep records of missed mortgage payments, as this may affect the final property settlement.

“Does my spouse still get half the equity if they stopped paying the mortgage?”

Generally, yes. In Texas, property division is based on the final divorce decree and community property laws, not necessarily who made mortgage payments during separation.

When one spouse moves out, questions arise about who should continue making mortgage payments and whether this affects the equity split. Under Texas law, property division typically depends on your divorce decree rather than who paid the mortgage post-separation. Courts often still divide equity equally, but the spouse making payments may receive credit for their contributions.

• Courts may consider mortgage payments when dividing assets
• The spouse who continued payments might receive credit
• Document all payments made after separation
• Consult an attorney about your specific situation

Pro tip: Keep detailed records of all payments, repairs, and improvements made after separation. This documentation can be valuable during settlement negotiations.

“Should I sell before filing for divorce if I think my spouse will try to sell below market value?”

If both names are on the deed, neither spouse can sell without the other’s consent. However, if you’re concerned about your spouse’s intentions:

• File for divorce to establish legal protections
• Request a temporary restraining order preventing sale without court approval
• Get a current appraisal to establish fair market value
• Consider mediation to reach mutually acceptable terms

“How can I finance a large buyout?”

For high-value homes, raising cash for a buyout can be challenging. Common financing options include:

Home Equity Line of Credit (HELOC): Borrow against the property’s equity, though this adds debt to the remaining spouse.

Cash-out refinance: Replace the existing mortgage with a larger loan, using extra funds for the buyout.

Retirement account withdrawal: While possible, consider tax implications and early withdrawal penalties.

Family loan or gift: Some couples receive help from relatives, though this should be properly documented.

Sell other assets: Consider liquidating investments, vehicles, or other property to fund the buyout.

“Is property bought before marriage still separate in Texas?”

Generally, yes, but complications can arise:

• Commingling: Using marital funds for mortgage payments or improvements may create community property interests
• Adding spouse to deed: This typically converts separate property to community property
• Significant improvements: Major renovations using community funds may give the other spouse a claim

Documentation is key: Keep records showing the property’s separate nature and any community contributions.

Moving Forward with Confidence

While divorce and property division can feel daunting, remember that thousands of Texas families successfully navigate this process every year. The key is understanding your rights, exploring all your options, and working with professionals who understand both the emotional and financial aspects of your situation.

At Leap Properties, we specialize in helping Houston-area families transition smoothly during life changes. Whether you need a quick cash sale to divide proceeds fairly, or simply need guidance on timing your sale with your divorce proceedings, we’re here to help you move forward with confidence.

Our experienced team understands the complexities of Texas community property law and can help you explore options that protect your interests while moving you toward your fresh start. Contact Leap Properties today to learn how we can help you navigate this transition with confidence and peace of mind.