The Law Firm of Joseph Lassen‘s San Antonio Legal Blog

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How to handle the mortgage in a Texas divorce

When your Texas marriage ends, you need to sort through numerous matters, and one such matter involves figuring out how to handle your shared assets and debts. For many former couples, the home they once shared is their most valuable asset. If you still have a mortgage on your shared marital home, you may be wondering what to do about it.

Per the Motley Fool, if you took out a joint mortgage when you bought your home, meaning both names are on it, then you both have a legal obligation to keep up with the mortgage payments until something changes. Most people in your shoes choose to handle the mortgage in one of two ways.


If neither you nor your ex has any interest in staying in the home you once shared, then it may, depending on the state of the market in your area, make sense to list it. When the home sells, you and your ex may split any profits you make on the sale evenly between you. That way, you both have money to work with when looking for a new home to rent or buy.


If only one of you wants to keep the home, that party has the option of trying to qualify for a new mortgage alone. If the party who wants to stay does so, he or she may be able to refinance the mortgage and take the other party’s name off of it.

In some cases, it may make sense to consider alternative arrangements, such as nesting. This may prove worthwhile if the housing market in your area is such that you stand to lose money by selling the home.