No.3290
Before starting the process, many wonder how
home equity works in a divorce under Texas Law.
Texas utilizes the community property model for divorce.
This means if the house was purchased during the marriage using 100% community funds, assuming community equity exists at the time
of divorce, the first step in splitting home equity would be to obtain an accurate evaluation of the home’s worth.
The clearest indicator of a property’s value is the price that a willing buyer will pay.
However, if neither side wants to sell the house, you must determine how to split home equity
in a divorce. You can calculate an estimate of the property’s fair market value
can be achieved through a formal appraisal. Many realtors also provide
informal market assessments, which can give parties an estimate of the home’s value.
However, an official appraisal is more accurate.
When it comes to divorce and house equity, there are several options
for apportioning the equity on the home once the property’s market value is determined.