A house is often the single biggest asset a divorcing couple has to deal with, and it usually can’t just sit untouched until everything else is settled. Here’s how Texas’s community property rules affect the sale, who has to sign what, and what your options are if you and your spouse don’t agree on timing or price.
Community Property Basics in Texas
Texas is a community property state, meaning most property acquired during the marriage — including a house bought with either spouse’s income — belongs to both spouses regardless of whose name is on the deed. Separate property, like a house one spouse owned before the marriage or received as a gift or inheritance, generally stays separate, but things get complicated fast if marital funds were used to pay the mortgage or make improvements on a separate-property house.
Do You Need Both Spouses’ Signatures to Sell
If the house is community property, both spouses generally have to sign the listing agreement, the purchase contract, and the closing documents, even if only one name is on the mortgage or deed. A title company will typically require both signatures to close, since either spouse could otherwise claim an ownership interest was never properly conveyed. This holds true whether the divorce is amicable or contested.
Selling Before vs. After the Divorce Is Final
Many couples sell before the divorce is finalized, since it’s often simpler to close as a still-married couple than to wait for a court to allocate an unsold asset in the final decree. Selling first also avoids the awkward situation of a court ordering a sale after the fact, or one ex-spouse being stuck managing a house they no longer want anything to do with. Some couples do wait until the decree specifies exact terms — like an agreed sale price floor or a deadline — which can prevent disputes later but delays getting the asset off both people’s plates.
What Happens to the Proceeds
Sale proceeds from community property are typically split according to the divorce decree or settlement agreement, which doesn’t have to be 50/50 — Texas courts divide community property in a way they consider “just and right,” which can favor one spouse based on factors like income, fault, or who’s the primary caregiver for children. It’s worth having the split terms agreed to, ideally in writing, before the house closes rather than negotiating over the wire transfer at the closing table.
When One Spouse Wants to Keep the House
If one spouse wants to stay in the house, they typically need to refinance the mortgage solely in their own name and buy out the other spouse’s equity share — lenders won’t remove a spouse from a mortgage just because a divorce decree says so, only a full refinance does that. If that spouse can’t qualify for a refinance on their own income, keeping the house usually isn’t realistic no matter what the decree says, and a sale becomes the only workable option.
Why Divorcing Couples Often Choose a Direct Sale
Zachary Faris, who works with you, is a licensed Texas real estate agent (TREC #0691730), sponsored by Myers Home Buyers LLC (TREC #9005311). Panda Properties buys houses directly for our own account, in as-is condition — no repairs, no showings, and no coordinating schedules between two people who may not want to be in the same room. A fast, certain closing date can also make dividing the proceeds and moving on considerably simpler than a drawn-out traditional listing. It’s a different transaction than listing, and it’s the right fit for some situations and not others; we’re happy to talk through both.
If you and your spouse need to sell as part of a divorce and want a straightforward, no-drama option, reach out — we’ll walk you through what a direct sale would look like for your situation.
Frequently Asked Questions
Will you be listing my home on the MLS or actually buying it?
Great question. Panda Properties buys houses directly for our own account — we’re not listing your home on the MLS as your agent. Zachary Faris, who works with you, is a licensed Texas real estate agent (TREC #0691730), sponsored by Myers Home Buyers LLC (TREC #9005311), but this purchase is a direct sale to us, not a representation of you as a seller. From there, we typically repair the house and resell it or keep it as a rental.
Do you pay fair prices for properties?
Many of the homes we purchase are below market value (we do this so we can resell at a profit to another home owner). We are looking to get a fair discount on a property. However, in our experience, many sellers aren’t necessarily expecting a large “windfall” on the property but rather appreciate that we can offer cash, we close very quickly (no waiting for financing), and no time or effort, or expense is required on your part of fix up the property or pay agent fees. If that’s what you’re looking for and you see the value in getting your house sold fast…let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)
How do you determine the price to offer on my home?
Great question, and we’re an open book: Our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, and the value of comparable homes sold in the area recently. We take all of that into consideration, along with current local market conditions, and come up with a fair price that works for us and works for you too.
Are there any fees or commissions to work with you?
This is what makes us stand out from the traditional method of selling your house: There are NO fees or commissions when you sell your house to us. We’ll make you an offer, and if it’s a fit then we’ll buy your house (and we’ll often pay for the closing costs too!). No hassle. No fees. We make our money after we pay for repairs on the house (if any) and sell it for a profit (we’re taking all of the risks here on whether we can sell it for a profit or not, once we buy the house from you… the responsibility is ours and you walk away without the burden of the property and its payments… and often with cash in your hand).
How are you different from a real estate agent?
Real estate agents list properties and hope that someone will buy them. The agent shows the properties to prospective buyers if there are any, and then takes a percentage of the sale price if they find a buyer. Sellers who list traditionally often wait weeks or months for the right buyer, financing approvals, and closing — time many homeowners dealing with foreclosure, divorce, or relocation simply don’t have. Oftentimes, the agent’s commission is 3-6% of the sale price of your home (so if it’s a $100,000 home, you’ll pay between $3,000 – $6,000 in commissions to an agent). But that’s where we’re different: rather than listing your home, Panda Properties buys it directly. Zachary Faris, who works with you, is a licensed Texas real estate agent (TREC #0691730), sponsored by Myers Home Buyers LLC (TREC #9005311), but in this transaction we’re the buyer, not your listing agent — we don’t list homes. Since we’re actually the ones buying the home from you, and we pay with all cash…we can make a decision to buy your home within a couple of days (sometimes the same day). Again, we make our living by taking the risk to buy the home with our own cash, repair the home, and market it ourselves to find a buyer (which is the hard part in this market).
Is there any obligation when I submit my info?
There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an all-cash offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your home to us… and we won’t hassle you, won’t harass you… it’s 100% your decision and we’ll let you decide what’s right for you.