Court Ordered Sale of House in Divorce: What Texas Homeowners Need to Know

When a marriage ends in divorce, dividing assets like the family home can become a major source of conflict. In Texas, community property laws dictate that most property acquired during the marriage belongs to both spouses and must be divided fairly. However, if the divorcing couple cannot agree on what to do with the marital home, a court may step in and order the house to be sold.

As Galveston divorce attorneys, we understand how stressful and complicated property division issues like a court ordered home sale can be. In this article, we’ll explain what a court ordered sale of house in divorce means for Texas homeowners and outline the legal process involved.

What is a Court Ordered Sale of House in Divorce?

In a Texas divorce, a court may order the sale of the marital home for several reasons:

• The spouses cannot reach an agreement on their own about what to do with the home
• Neither spouse can afford to buy out the other’s share of the home’s equity
• Selling the home is needed to achieve a “just and right” division of the marital estate (community property) as required by Texas law

The proceeds from the court ordered home sale are then divided between the spouses as part of the final property division in the divorce decree. The court will decide how to split the money based on factors like each spouse’s income, earning potential, health, and fault in the breakup of the marriage.

When Can a Texas Court Order a House to Be Sold in Divorce?

Under the Texas Family Code, a divorce court has broad discretion to divide community property between spouses in a manner it deems “just and right.” This includes the power to order certain assets, including real estate like the marital home, to be sold in order to make the division equitable.

Some situations where a court may order the marital home to be sold include:

• The house has significant equity that needs to be split
• One spouse wants to keep the house but cannot refinance the mortgage to remove the other spouse
• The house is one of the couple’s largest assets, and selling it is necessary for a fair overall property division
• The spouses are so hostile that continuing to co-own the home is not feasible
• The house payments are not affordable for either spouse individually

However, the court also has the option to award the home to one spouse and order them to buy out the other’s share of equity or to continue living there with exclusive use. So a court ordered sale is not automatic or the only possible outcome.

How Does a Court Ordered Home Sale Work?

If a court orders the marital home to be sold in a divorce, the details of the sale process will be outlined in the divorce decree. Typically, the decree will specify:

• Which spouse has the responsibility to list and market the home for sale
• The minimum sale price to be listed
• How long the spouse has to complete the sale before the other spouse or a receiver can get involved
• Whether a realtor will be used and what their commission will be
• How the sale proceeds will be distributed between the spouses

If the spouse ordered to sell the home fails to do so by the deadline, the other spouse can go back to court to ask a judge to appoint a receiver. The receiver then takes over the sale process to get the home sold.

Pros and Cons of a Court Ordered Home Sale in Divorce

A court ordered home sale has advantages and disadvantages for divorcing homeowners to consider:

Pros:

• Can provide closure and a clean break faster than a drawn-out battle over the house
• Reduces conflict by letting a neutral third party (the court) decide what happens to the home
• Converts home equity to cash that the spouses can use to find new housing
• May allow more flexibility with sale terms/timeline than a foreclosure or short sale

Cons:

• Lose control over process compared to agreeing to a voluntary sale
• May force a sale for less than market value if the ordered price is too low
• Court-set deadlines can rush the marketing process
• Legal fees to go through the court order process can eat into profits
• Potential negative impact on credit scores if mortgage payments are missed during the divorce

The Bottom Line on Court Ordered Home Sales

If you’re facing a court ordered home sale as part of a Texas divorce, it’s crucial to work with an experienced divorce attorney who can help protect your financial interests and legal rights. While the prospect of being forced to sell your house is scary, a court order can sometimes be the least-bad solution when spouses can’t agree on property division issues.

At the Law Office of Aimee Stritchko, our knowledgeable Galveston divorce lawyers can guide you through the court ordered home sale process while fighting to achieve your goals. Whether you want to pursue the sale or are looking for alternatives to keep your home after divorce, we’re here to provide the strong advocacy you need.

Call us to discuss your Texas divorce case and how we can help.