Will We Have to Sell Our House if We Get Divorced?

 Posted on June 09, 2025 in Divorce

For many couples, the family home is the most valuable — and emotionally loaded — asset they share. Deciding what to do with it during a divorce can be one of the hardest parts of the property division process. As of June 2025, Texas community property laws still apply to most real estate acquired during a marriage, which means that even if the home is only in one spouse’s name, it is likely still considered joint property.

Whether or not you have to sell depends on the equity, the mortgage terms, your financial goals, and whether either spouse wants to keep the house. Before you make any decisions about dividing your home, your investments, or any other asset, talk to a Collin County, TX divorce lawyer about what your options are. 

What Does Texas Divorce Law Say About the Marital Home?

Texas is a community property state. That means any property acquired during the marriage, including the house, even if it is in only one spouse’s name, is presumed to be owned equally by both spouses unless proven otherwise. Separate property (such as an inheritance or a home owned before marriage) may be excluded, but only if the evidence is clear that it belongs to only one spouse.

If the house is community property, the court will divide it in a way that is considered "just and right." That does not always mean an even 50/50 split, especially if there are children, large income differences between spouses, or other major assets or debts involved.

Do We Have to Sell the Home to Divide It in a Divorce?

Many couples do sell the home and divide the proceeds, especially if neither spouse can afford to keep it or refinance it on their own. But other solutions are possible. One spouse may buy out the other’s share or agree to offset the equity by giving up a larger portion of retirement accounts or investments. In some cases, particularly those involving minor children, the court may allow one spouse to stay in the home temporarily with the children and delay the sale.

If you and your spouse can agree on how to divide the house and the mortgage, the court will generally approve your arrangement. If you cannot agree, the court will make the decision based on the facts of your case.

What Happens if One Spouse Wants to Keep the House?

A spouse who wants to keep the house will typically need to refinance the mortgage to remove the other spouse’s name and financial responsibility. That means qualifying for the loan based only on that spouse’s credit, income, and assets. Refinancing also provides a way to pay out the other spouse’s share of the equity.

Keeping the house without refinancing can lead to major problems. If both names remain on the mortgage, and one spouse defaults, it can harm both parties’ credit, even if only one of them is living in the house.

Divorcing spouses in Frisco and throughout Collin County should consult with both a lawyer and a financial advisor to understand whether keeping the house is practical or wise in the long run.

How Should We Handle the Home in Our Divorce If the Market Is Down?

If the home has lost value or is underwater (you owe more than it is worth), the decision becomes more complicated. You may be able to negotiate a short sale, agree to hold the property and rent it out temporarily, or allocate the debt between you as part of the divorce settlement.

Ideally, you will work with your spouse to decide what to do about your mortgage and other marital property and debt. If not, Texas courts have broad discretion in dividing marital debt. If one spouse assumes the loss on the home, the court may compensate by awarding that spouse more of another asset, or by ordering a more favorable split elsewhere.

Every home, every mortgage, and every marriage is different. The most important thing is to approach property division with realistic expectations, clarity about what you are hoping to get, and a full understanding of the financial implications of any proposed deal.

Contact a Frisco, TX Divorce Lawyer

Whether you want to sell the home, keep it, or walk away entirely, you need a lawyer who knows how to guide you through these decisions with both legal knowledge and financial awareness. Contact a Collin County, TX divorce attorney at Moore Family Law, P.C. by calling 214-764-8033 today.