An inevitable part of divorce in Texas is dividing up the spoils, so to speak. When two people marry, they bring assets into the marriage. During the marriage, they may acquire more property together. In fact, some of the assets they brought independently into the marriage may have been used to purchase marital property. For instance, the wife may have owned a condo prior to marriage, which she sold and used as a down payment on the marital home.
Business Insider notes that one step some couples start off with is selling that marital home. They may then share whatever is left over after paying off the remaining balance on the mortgage. The more equity the couple had in the home, the more money they may walk away with if they sell for a good price. Couples may also either split or sell the items in the home.
When there are still young children in the family, the custodial parent often prefers to keep the home. If the house is already paid off, then it may seem like the most sensible thing in the world to do. However, larger homes require more maintenance and over time, the cost of doing so may pile up. Financially savvy custodial parents often opt to downsize instead.
The older couples are, the more significance they may place on their retirement funds as they have less time to refill it. A retirement fund that was on track to serve two persons and maintain one household, however, may not seem sufficient when it must support two people in two different households with two sets of independent expenses.
Sometimes, one spouse is so reluctant to share assets that they would rather see it go to waste. Forbes refers to this as the dissipation of assets. In these instances, the breadwinner may squander the available funds to reduce what their spouse may receive. The loss of assets is hardly a hit to them since they may be able to earn it back later on. The same may not be true of their financially dependent or lower-earning spouse.
Property division is a financial process, but it is also an emotional time for many couples. It is not easy deciding who gets what and why. Still, if both parties keep a clear head and remain fair, they can come to mutually beneficial agreements.