(214) 945-1066

How to Divide the Equity in a Divorce: Here’s what to know

How to divide the equity in a divorce can be complicated in Texas.  A Texas divorce can be more complicated than other states so doing an online divorce or a do it yourself can come with some problems.  Texas has very unique home equity laws which only allow cash out up to 80% of the homes value.  Often times when dividing the home equity in a divorce, one will need to tap as much of the equity as possible.  Coping with divorce is difficult enough so we want to help provide the information you need to make the process as easy as possible.

The Richard Woodward Mortgage Team is certified and experienced in divorce related mortgage issues.  We can help you access up to 95% of the homes equity, even when the big banks and online lender tell you it is not possible.  We understand Texas law and how it affects both parties, we provide help and can even help connect you with divorce lawyers.

Disclaimer:  We are not attorneys and do not provide divorce law advice. Rather we can consult with you regarding mortgages, splitting home equity properly and getting pre-approved for a divorce equity settlement.

Divorce and Mortgages: What You Need to Know

Usually the mortgage on your house is the biggest liability a divorcing couple has to split. Divorcing that home loan isn’t easy and the divorce decree is just the start. In the eyes of the mortgage lender you remain together liable for the mortgage unless you sell the house, one of you assumes the mortgage, or refinance the current mortgage removing the spouse leaving the home.

Even if your divorce decree states that the other spouse will be responsible for the mortgage this will not remove the other spouse from the responsibility of the mortgage. When both spouses signed the original mortgage documents they agreed to be jointly responsible for repaying this loan until it is paid off.  That means that if the retaining spouse keeps the home and misses mortgage payments, BOTH parties will have ruined credit as the missed payments are reported on both borrowers credit report.

The equitable distribution of home equity in a divorce requires the retaining spouse to be able to qualify for the home and the division of equity on their own.  That is why before a lawyer writes a divorce decree to divide the equity, both parties should speak to a certified divorce lending specialist.  “I have had many people complete an application to refinance the marital property as require by the divorce decree find out they just don’t qualify.  This is 90 days after the final divorce decree was signed.  Now they are in contempt of the divorce decree and subject to fines or possible jail time.” Richard Woodward, a licensed loan offer said.

If you are searching for divorce papers online or an online divorce I might suggest Texaslawhelp.org or Texaslegal.org, 5 Must-Know Facts About Divorce In Texas.  Even if you have a happy divorce, dividing the marital assets takes planning and expertise.  Please feel free to ask questions by calling us at (214) 945-1066 or use the form below.

Contact Us

Nexa Mortgage - Richard Woodward
7820 Hague Ct
Plano, TX 75025
Phone: (214) 945-1066

Social Media


Richard Woodward
Branch Manager
NMLS #217454
Company Licensing
Company State License#
AZMB - 0944059
NMLS# 1660690

Equal Housing Lender