For many divorcing couples in Texas, the family home is the largest asset they share financially and emotionally. Deciding what happens to the house can be one of the most complicated parts of a divorce. Texas is a community property state, which means the court must divide marital property in a way that is just and right, not necessarily 50/50.

Here’s what you need to know about how Texas courts handle the family home and what your options may be.

Is the Family Home Community or Separate Property?

Before determining who keeps the home, Texas courts first ask:

Is the property community or separate?

Community Property (Most Common)

A home is considered community property if:

• • It was purchased during the marriage, and
  • A spouse did not use separate property funds to purchase it.

This means the house belongs to both spouses, regardless of whose name is on the mortgage or deed.

Separate Property

A home may be separate property if:

• • One spouse owned it before the marriage,
  • It was inherited, or
  • It was received as a gift.

However, even separate property homes get complicated when:

• Community funds were used to pay the mortgage,
• Community funds improved the home, or
• Both spouses contributed to upkeep or renovations.

When this happens, the non-owning spouse may have a reimbursement claim for the community estate.

Who Gets to Stay in the House During the Divorce?

Temporary orders often determine who stays in the home while the case is pending.

Courts consider:

• • Stability for the children
  • Safety
  • Financial ability to maintain the property
  • Any history of family violence

If children live in the home, courts often prefer to let the primary caregiver remain until final orders are entered.

What Are the Final Options for Dividing the Family Home?

When it’s time to finalize the divorce, Texas law offers several options depending on finances, children, and each spouse’s goals.

1. One Spouse Buys Out the Other

The most common solution is for one spouse to keep the home and buy out the other spouse’s share.

This typically requires:

• • An appraisal
  • A refinance into the retaining spouse’s name, removing the other spouse from liability
  • Agreement on reimbursement claims
  • A deed transfer (often a Special Warranty Deed or Owelty Deed)

2. Sell the Home and Split the Proceeds

If neither spouse can afford the home alone, or neither wants it, the court may order a sale.

Proceeds are split according to:

• • Community property percentage
  • Reimbursement claims
  • Equity
  • Court’s “just and right” division

3. Co-Ownership After Divorce (Rare)

Sometimes spouses agree to keep the home temporarily—for example:

• • Until children graduate
  • Until the market improves
  • Until the mortgage can be refinanced

Co-ownership requires careful drafting to avoid disputes over repairs, taxes, and mortgage payments.

4. Award the Home to One Spouse Based on Equity and Circumstances

In certain cases, a judge may award the home to one spouse without a traditional 50/50 split.

Courts may consider:

• • Primary caregiver status
  • Significant income disparity
  • Family violence
  • Waste of marital assets
  • Who can realistically maintain the home

Texas judges aim to divide property fairly, not simply equally.

What If the Home Has a Mortgage?

If one spouse keeps the house, refinancing is usually required to:

• • Remove the other spouse from liability
  • Adjust the loan to fit the retaining spouse’s income
  • Release the community estate from future risk

If refinancing is not possible, the court may order the sale instead.

Reimbursement Claims: A Common Issue

Reimbursement claims can significantly affect the division.

Examples:

• One spouse used separate property for the down payment
• Community funds paid off the principal on a separately owned house
• Community funds were used for renovations or improvements

These claims must be supported with documentation—receipts, mortgage histories, bank statements, etc.

Protecting Yourself During the Process

To prepare for discussions about the home:

• • Gather mortgage statements
  • Find your closing documents
  • Collect proof of payment sources
  • Document improvements
  • Get an appraisal if possible
  • Avoid moving out without consulting your attorney

The more organized you are, the stronger your position becomes.

Final Thoughts

The family home is more than just property; it’s often a place of memories, stability, and emotional investment. During a Texas divorce, decisions about the home should balance financial reality, child stability, and long-term goals.